Talk to a CPA to see how each scenario plays out.A 401K continues to grow in value, but what do you live on? 

.: I always play it by ear.

Oregon saw it that way as well.. many folks got cease and desist using guru on line training techniques this just formalizes the activity and levels the playing field and gives both buyers and sellers a mechanism to get out of deals and or have a regulator step in..

So, an investor could easily cashflow right away.Those days are over.Landlording is a long-term play.

They loved it because they got some play money right away and steady income each month without having to deal with toilets and tenants.

The banks thought I was a dead beat because of my debt to income ratio.  

Well I have seen this come into play - I had someone who has a note in florida that was a non-owner occupied loan and the lender claims the borrower failed to make payments on this and attempted to record the deed in lieu.

Quote from @George Skidis: Not an attorney and don't play one on television.

It's unclear on how that plays into your question about taxes.

Retirement accounts are designed to be invested passively so when the IRS sees you running an active business in it, to level the playing field between retirement accounts and other business the retirement account incurs UBIT.