Let me try to give a real world experience that may provide some conclusion as to whether or not owning more properties provides greater protection.I’m going to use a duplex that I purchased in city of South Minneapolis back in 2014, that I self manage.I purchased the duplex for 180k with a fixed 5.25% for 30 years with 25% DP and 3% closing costs.Let me point out some of the specifics of the duplex.The windows, furnaces, water heaters and HVAC were brand new as of 2012.I have put 5k into unit #2 for renovations and 3k into painting the house due to a violation of lead order by the City of Minneapolis.So keeping those upcoming expenses in mind for the near future, suppose two investors have 50k to spend which is to be used for closing costs, DP and realtor commissions.Since I paid for closing costs with cash, I’m not going to roll them into the loan for this example.

When I built our current home, which was supposed to be short term, it was mid 2007.

The cost approach estimates the cost of replacing the subject and is generally higher than the market value (insurance companies use that to over insure you, LOL) but don't forget to apply depreciation to the cost approach bringing in the difference in age of an existing improvement to a brand new one, look up internal and external obsolescence as well.Many here only consider the income approach when buying a rental, I suppose you can do that with a pig, but when you buy you're buying at market value, so the sales approach should usually be weighted more in the market.

As you probably know, you're not supposed to be actively involved in the labor on properties owned by your 401k.

I suppose I could just ask?

That said, I've now gotten supposed actual expenses from the seller, and if I take their word for it on operating expenses the cap rate is more like 5.4%.  

The main point here I suppose is the tax treatment that you have from the fund is from the fund not from the vehicle that invested in it.

Found a property I like, it's a tri-plex and the basement is covered with mold from the outside ground level to the floor of the unit, also there is a huge tree in the back yard and the roots are all over the back yard ,no grass I suppose because of the roots and all the gutters are filled with stuff from the tree(s) 3 bedrooms upstairs and 2 in the basement nice size bedrooms too, question is Is this an up-hill battle ending in defeat or can this property be saved????

I called them on Friday and am supposed to hear back by the 24th.

If I am a tenant looking to move in and almost immediately I am supposed to pay to fill the oil tank, I am going to be seriously ticked off.