Most of the learning will be around due diligence and setting the correct terms of the loans ... as with tenants, lending is all about screening your borrowers. 

Save the 3K per month, bring deals to an investor, borrow against the 401K or convert it to a self directed/solo account.

Interest is one part, but a lot of this is adjoining someone borrowing with the asset.

If the borrower is behind on their mortgage or taxes, these often have to be paid.

It may be possible, per the terms of the trust and at the discretion of the trustee(s) to be able to borrow from the trust itself, provided the trust has liquidate assets or it's equivalent.  

This is what he sent me today:QUALIFICATION 1.The Borrower must be at least 25 years old 2.With Bad credit, we still Guarantee the Borrower the Loan 3.The Loan Can Be Granted Even With No Collateral Present or available(Unsecured) 4.A business plan or Executive Summary is needed from the borrower to preview before the loan process.

Other than that I have some cash and a 401k to borrow from.

Mortgagees have a right to preserve the property and the borrower has a obligation to maintain the property.  

(Of course)How cheap is the money that you are borrowing to do these renovations?

I failed to mention that I think the likely ARV here is $115K to $120K.Our other option is to borrow against our homes which is probably the route we will go.