I would be suspect of someone not willing to share insurance and bond information (note it's bond not bound).  

If you plan to try to raise a blind pool at a later time it will help to have a lengthy track record of providing value to investors in a certain type of vertical and product. 

Realtor - try to hire one who is NOT afraid of the 203k, preferably one that is excited about house hacking Lender - hire one with 203k experienceHUD Consultant - lender is ultimately responsible for the selection of themContractor - must meet any local license/registration requirements and has a GL insurance policy; good to hire one that is also bonded; strongly recommend hiring a contractor who has been properly educated on the 203k or has verified experience with the 203k, such as a Certified 203k ContractorYour only as strong as your weakest link ... select your partners wisely. 

The appraisal process can be a lengthy one.

She likely knows that evictions can be a lengthy process so she will just ride it out, which may get her an extra 1-3 months rent free. 

So, as a simple comparison of 401K’s, you have a pretty good deal.The next consideration would be the selection of bond funds, mutual funds, index funds, etc. that your 401k plan offers.

Real estate, bonds, job, business, speeches.....all are different income streams. 

As you've mentioned, FHA does require a separate inspection and appraisal prior to loan approval, however this is not a tedious/lengthy process and in my experience only turns off sellers if the property is in disrepair.

As for losing your own house in the event you get sued and whatnot, I had a very lengthy call with my attorney a few weeks ago about this very matter.

Sell the property and use the after tax proceeds to purchase AAA rated, insured municipal bonds issued by your state of residence that pay about 4.0% interest.