This will save on income tax.

Nothing will save you from paying too much for a property.

Save your money and hassle.

Your number 3 has me thinking about owning real estate on the moon:) I'd encourage you to read through The Ultimate Beginner's Guide for Wholesaling as it takes you through the ins and outs of wholesaling.

Chances are that any tax saving you may realize from your rental property investment won't come close to offsetting the income tax and the 10% penalty you will  pay on the 401K withdrawal.

If you state the seller is to pay all of it on the first contract, and the new buyer is to pay all of it on the second contract, you can save yourself that fee (and any other split costs).

If you state the seller is to pay all of it on the first contract, and the new buyer is to pay all of it on the second contract, you can save yourself that fee (and any other split costs).

My business partner (my brother who lives in San Francisco Bay Area) have saved up a solid amount of money and want to make a purchase where one of us will be local to help manage.

Conversely if values are high but rates are high you can appraise for the value you need but the rates will not be so appetizing.In your case where you have FHA monthly MI of .80%- .85% even if you could refinance to the same rate you have right now and remove monthly MI it would be worth it since you'd save around 400 dollars per month most likely.

I have not read the Ultimate Beginners guide to Real Estate but will do so when I'm done typing this post.