Regardless of the 401k considerations, I'm not sure I understand your math.

How the rehab funds are distributed (strict funds control draws thru escrow or simply handed to you as a lump) would be between you and the lender.

The downside is you may be in a high (or higher) income tax bracket in retirement, so you will be paying lots of tax on your withdrawalsIf you earn a modest salary now or have a business which carries some of your living expenses (i.e. vehicle) - or have rental properties in your own name which are not producing huge cash-flow {yet} - but expect to have larger income/assets in retirement, then a {Self Directed} TFSA may be a better fit.While I have both, at the moment I keep most of may capital in my companies and only draw a minimal salary.

After some quick calcs, if you buy the second property and invest the extra $4,200 someplace else it would have to earn a 78% return so that your entire 18,000 would equal the yield on the first property.Also note that my comments above do NOT take into consideration qualitative factors such as the condition of the property, how nice the neighborhood is, etc.

Additionally, let's say that as consideration for the seller keeping the property under contract, the buyer agrees to make timely deposits on a schedule to keep the contract active that may establish 8% of the contract price by a date 30 days prior to the estimated closing date.In the event the buyer fails to keep the contract active, all amounts paid shall be forfeited to the seller as compensation for keeping the property off the market and holding expenses.

I didn't see the renovation number. 15k max with that taken into consideration.

Will that draw in better tenants in the future for my property and bring in new businesses in the area?

Mine are short terms 3-5% per annum loans for my flip, but my clients have the option of drawing their money every 6 months so they get the yield of a FD or better plus flexibility to withdraw if they find better opportunities.

But I think doing a lot of little nice things through the year doesn't add up to too much money, but coupled with repairing everything quickly, and being friendly, I think it comes into tenant's considerations when they are thinking about moving and remember that one other a**hole landlord compared to how easy and nice everything is here..

For an option to be valid for real estate, the property must be identified, the parties are identified, a term in time must be stated providing an expiration date, an option price must be stated as consideration for the right to purchase and a sale price that is determinable or stated must me included.