Ask them when they issue distributions (anything before the 15th of the month is a red flag), do they require reserves, how is maintenance charged, do you see copies of outside contractor bills, do they upcharge materials (PM's have LAR accounts with Lowes and often get 20% off), do they keep all late fees or just the management fee, what other fees do they charge (renewals, inspections, etc), where are tenant security deposits held, how are evictions handled and are you consulted before filing, what screenings do they run, what qualifications do they require from tenants, ask for a couple other owners to visit with for a reference. 

They all do really solid accounting.  

Or if you can get a 0% interest credit card to purchase materials - I've had to do that in the past and put 70k on two credit cards :-/ Then when the bank finally came through I paid off the CCs. 

According to the PMC, they do background checks, credit checks, past rental checks, the works.... problem is these tenants are serial renters.

Do a home equity line of credit, and use that money for our next investment. 

I would strongly recommend having a real estate-focused accountant look at your situation and prepare your taxes for you, as you are now treading into complicated waters where you can get yourself into trouble if your not careful!  

We both have great credit scores (low 800s) we own a property for collateral.  

We have quoted some DSCR’s lately in the low 7’s when credit was good! 

It's essential to check with the administrator of your husband's 401(k) plan to confirm eligibility criteria.Plan Rules: Each 401(k) plan has its own rules and regulations governing loan eligibility, loan amounts, repayment terms, and other aspects of borrowing from the account.

Quote from @Robert Rixer:  Have you heard of the installment method of income tax accounting.?