Needless to say, her vehicle was totaled and the bottom two units of the fourplex needed to have their carpets restored/replaced (in addition to other forms of cleaning in these units).

Keeping that money and making it grow is an even greater responsibility that requires specialized knowledge.My humble recommendation is to get educated - about money, finance, market cycles, residential real estate or any other investment vehicle you're considering. 

I also have about $20K left on a vehicle loan.Should I keep maxing out my 401K to get the max tax savings against my day job income or should I cut back to 6% and use the extra cash to pay off the vehicle loan and bridge the funding gap on second property?

A straight option to be precise.

401K can be an awesome vehicle to get a good amount of liquidity fast.  

My name is Lanis from Southern California, Inland Empire to be precise.

You have not seen that term "Loss Payee" because is normally used to referred to someone with a financial interest in a vehicle or equipment or other Business Property. 

@Bianca Gandhi When choosing between self- directed IRA or 401k, be aware that the solo 401k is a better vehicle for RE investing.

If you haven't purchased and are still thinking about purchasing I say drive over there park your vehicle and walk from congress heights metro station to Anacostia metro station after 10 am.

I was looking for actual first hand info of precise numbers of specific deals where this worked.