Another factor is the rental prices aren't making sense, while still continuing to rise.

Hi @Anthony Russell...I like the creativity.I believe IRS rules limit 401K loans to $50K (total), so I assume this would be a limiting factor for you.

We just got the house refinanced also for a $260 a month difference, so now it cash flows at 300 a month after expenses.I think that as long as you factor in the property management into your assessment, you should be fine.

What factors do you think will contribute to increases in the prime rate?

I am going to factor that into the asking price, the homes are older and with the 2 being uninhabitable to factor that into the offer. 

The location would probably be on the bottom of the list of importance, you need to look at other factors such as experience, quality for client service, etc.Second, as a self-employed real estate professional you should consider self-directed Solo 401k, which is much more superior to an IRA for several major reasons, you can read more on this blog post: http://www.biggerpockets.com/blogs/2810/blog_posts...

That is going to be a huge factor when speaking with your attorney and accountant.  

Those might be old relationships or new ones, but our first cull factor is that the prospective borrower must be someone we like and trust.

What factors are critical to making the deal work for me along with hopefully a higher acceptance rate from seller?

The condition/composition of your road will also be a factor in this.