I am torn between plexes and single-family housing.Just to reiterate, the ideal approach is to buy using LLC and have the seller to finance?

Wholesale speaking, should I approach these a little different than I would a "normal" rental property?

I'm leaning towards the buy-and-hold approach towards investing, for some good, reliable cash flow.  

The VA Supportive Housing Program approached us specifically knowing what we do and that our people are educated investors.If THAT'S "too good to be true", well, you may want to re-evaluate your standards.David J Dachtera"Success is not a destination.

@Felix Sharpe-- Here is my strategy ... a combination of the below approaches:(1) Market Approach: Review rental prices of comparable properties currently listed on the market.

Nice relaxed way of approaching this business!

I am just wondering how to approach the seller.

I am in contact with their agent and working with my lender to determine a possible approach.  

There's a lot to learn...where to find NODs, how to search your county records, how long it takes to foreclose and how much time you have to contact your potential sellers, how to approach lenders if you need to (get a specific POA from the owner), what happens if the seller decides to declare bankruptcy, what to put on your contract, how to get and record the deed, if there is a second can you work a short, can you work the BPO, etc.  

To purchase a $320K property, you would need to have a minimum of about $150K in the plan.As @Darren Eadynoted, any future expenses associated with the property would need to come from the 401(k), so one always wants to be conservative when maintaining semi-liquid reserves within the plan to cover any unexpected costs.That said, the ability to leverage your tax-sheltered retirement dollars into a secure asset such as real estate, and receive a higher cash-on-cash return for your invested 401(k) funds is a great strategy when approached the right way.