If you want to rent out units by advertising on Craigslist and meeting tenants out there, you might be able to make this work but your lease-up will be slow-going. 

Any money you withdraw, becomes taxable.3.

Negative thinking will only slow you down if not stop you.  

My theory is that new land developments have slow to return to the marketplace in response to the demand preferences of millennials and boomers both choosing to rent versus purchase. 

Then repeat the process, always re-investing profits, and your portfolio will grow, slow and steady.Todd

I see many purchases as a mistake.Listing brokers are pushing 4 to 5% or more rent growth in the pro-forma's and vacancy at 3% with expenses totaling 35% etc.So even if they list as a 7 cap it is really a 5.5 to 6 cap with proper underwriting.Velocity for multifamily has slowed compared to other asset classes.

When looking at the big picture, do what will increase your net worth the fastest.Using your extra money to pay down bad debt will delay your financial freedom and slow your net worth growth.  

We've dealt with our share of unexpected issues, of course, but that hasn't slowed us down much, and I always enjoy jumping on the phone with my partner and talking through our plans. 

- What tax advantage(s)/disadvantage(s) do you get; the 401K grows 100% tax free (but then you pay taxes upon withdrawal); with the REI, you'll have tax, but also numerous deductions.Taking a stab at a very simplistic analysis that doesn't account for everything in the above, but why not it's a fun mental exercise :)- 25K of cashflow accounts for your vacancy rate, maintenance cost, property management (i.e you're paying yourself to manage them before that 25K) and so on; i.e it's free and clear.- 1MM of property increases in value at 2% annually in appreciation (making a rough guess that at 100K per property you're in a C neighborhood with low appreciation rates?

If I took a withdrawal that would be different.