I'm struggling a bit on that comparing the passivity, appreciation, etc

This plays into the affordability issues for tenants by allowing them to live in nicer neighborhoods for less money, yet I get monthly revenue comparable to short-term rentals.

But honestly, you'll want to shop around and compare a few local PMs since fees and services can vary quite a bit.

In fact, the appraiser may not even appraise it at $280,000 even though the comparables would point to that value all day long.

To decide, consider your ultimate goal, manage more tenants, and analyze potential fourplex properties to compare their returns.

As long as you stay invested and let your hard earned capital continue to grow, you can pick your spots when a real estate opportunity offers outsized returns comparatively to other investments. 

I would say it depends on how well the chunk of cash in your 401k is performing compared to the asset you are acquiring.

@Landon Sheveland People do fix and flips while living into the property to classify the property as primary residence and not pay any capital gain taxes. if that is your intention, don't use LLC to establish this as your LLC.If your goal is different compared to what I said above, you can use LLC.

Keep in mind, I’m based in the Binghamton, NY area, which is more of a cash flow market with slower appreciation compared to other areas.

They'll need fast reliable wifi.