The payments on a 401k loan are not tax-deductible (unless loan is to purchase primary residence, I am not a CPA so this should be confirmed with the tax expert).4.

You might consider investing in private lending and easily get 8-12% on your money very passively, build up your reserves, and get that RE license, and learn RE while you earn income.

IF  you don't have the cash reserves I would say sell.

If you have idle money above and beyond reserves use it in the businesses you believe in. 

Plus as you get further in the game you are going to want reserve funds.We bought our first house with a VA loan 0% down.

It is used to cover any repairs, vacancies, etc up to the amount needed for reserves.

(does the escrow agent send me some form of confirmation?)

Regarding my rental: same thing, income they can account 75% of rental price as income (in your case they would account $975/mo as income (1300*.75 = $975))Debt to Income Ratio: 43% is her new limitSavings: Need 6 months PITI (Full payment) in reserves after close for all financed properties, and two additional months reserves on the new primary if using a down payment less than 20%.

Justin:When Thomas asked about legal non-confirming, I do not believe he was implying your house is not compliant with building and fire codes, but was asking if it conformed to local zoning by-laws.We have student housing as well and it has been our experience that most university towns have occupancy by-laws limiting the number of un-related adults in a single dwelling unit (usually to 3 - 5) which are specifically aimed at student rooming houses.  

Doing the math on the property with a traditional 20% loan it looks something like this Purchase Price (Max Offer Price) $90,000 Percent Down 20% Down Payment Amount $18,000 Amount Financed $72,000 Interest Rate 4.85%  Closing Cost $3,150.00  Costs of Repairs (Make Ready) $7,000  30  Mortgage Payment $379.94   Rental Income Monthly Annual Unit A $1,050.00  Vacancy Rate 5%  Net Rental Income $997.50  Expenses Monthly Annual Property Management Fees $105.00 $- Leasing Costs $50.00 $  Maintenance Reserve $60.00 $ Utilities $12.00 $-  PropertyTaxes $45.83  $ Insurance $80.00  Total Expenses $352.83  Net Operating Income $644.67 Net Cash Flow $264.73 HELP PLEASE, this looks like one of those properties I would be fool to let pass by.