Obviously I know that all money borrowed needs to go back into the plan, and I am assuming that the return on the money would also need to go back into the plans.  3.  

Not knowing anything about your financials, having 4 borrowers isn't in and of itself an issue, it just means there are 4 times the number of documents you'll need to provide.

The reason for this is the lending laws to owner occupied borrowers are significantly different than lending to investors - examples foreclosure process, rates and fees that can be charged and no balloon payments.If you do fins someone to lend the money needed, I would highly recommend that you have a competent mortgage lender take a very close look at the deal so they can get you refinanced out of the private money once you have the rent revenue in place.

The death of the borrower makes no difference.

My initial choice was the Norfolk are because I'm familiar but there really isn't much growth in the area if your not right on the campus.Any advice?

@Lee Ripma I've thought about being the bank, When you're funding deals are you funding the entire deal (to include all rehab) and being the First position, or are you funding Acquisition/Down payment only requiring your borrower to have "Skin in the game" and leaving you in 2nd position?

If the seller carries the mortgage, do I still control everything else such as being able to borrow against the asset and rehab to add value.

We could buy it cash with money borrowed privately.

What is your method of choice for investing OOS?

I agree ,Don’t borrow from the retirement plan .i disagree about what to do with the 40 k you will get on the sale of that property .