Family, passive income, early retirement, additional income stream, etc.- What is my long-term goal (25,50 years down the line)?

Do you know someone that has $12,500 in their retirement account?

We are in the county in an area with a lot of retired people around a lake community.

One cannot tell if your assumptions are correct without knowing the details (purchased with marital money or not) of all assets and the division of both partner's retirement funds.

The $40k break down as follows: $25k deferred salary (max as I'm over 50), added $8k as non-elective company contribution (profit sharing - 25% x $32k for S-corp)) equaling $33k of retirement funds in my 401k, leaving $7k ($40k-$25k-$8k=$7k). 

Meaning you take money out of your retirement account (almost always a bad idea because it is tax advantaged) and you have to put it back in there before the term is up or face the penalties.

@Zeke Liston Starting in Cincinnati as a beginner REI in 2020 and then I will be expanding into Columbus & Cleveland in the next 5 years, the other 2C's, because large growing stable populations in cities always need to find a place to live.

@Jasraj Singh The midwest has stable markets and good cashflow as well! 

These are very stable and probably a great option for those who would rather be more risk averse. 

The gist:  Wholesale deals in retirement accounts will get crushed by the IRS once they get around to auditing them.The Mazzei Roth IRA Case – An End to Magical SchemesBy Attorney John HyreWith SDIRA & RE clients across the countryIralawyer.comThe Tax Court took a major step in the direction of curtailing SDIRA abuse.