They will need to do it by rolling into a self-directed IRA to avoid any tax consequences of pulling from their 401k. 

All you're doing is reducing your cash flow (instant profit) and transferring your wealth from a liquid form (cash) to a solid object (reduced balance). 

Are you planning to self manage?  

I want to thank the collective wisdom of bigger pockets community that enabled me to grow from 13 doors to 75 doors in 2 years while also holding a full time job in technology (I own and self manage these properties with a 50% partner).

I would have called MPD on my scruffy looking twenty-something self, especially if he was sleeping an empty house that no one was supposed to be in!

@Elijah FastYour lender and possible your insurer will require a Phase 1 assessment .... this is predominately a visual inspection and paper exercise (costing anywhere from $750 - $2500) with the objective of discovering any potential contamination of the property (or demonstrating that there is none).An abandoned underground storage tank (UST) is something which should be disclosed by the vendor (it appears that it has been in this instance), but it is an example of the sorts of things a Phase 1 ESA looks to discover.Depending on the results of the Phase 1, you may very well be requested to continue with a Phase II ESA.Having a Phase 1 lets you know what you are walking into ... which is why lenders want them.  

If I buy here I will be tempted to self mange which means I am on call again.I mostly bought foreclosures at a discount.

Avoid the "shiny object syndrome" by narrowing down your niche as soon as possible.

It's been 2 weeks and the kind of applications we are getting are far from ideal...bad credit scores, delinquencies, hard to figure out how much do they make (meaning self employed in some cases) are some of the issues that made me reject 4 applications so far.My property manager (who helped me buy the house) has posted the ad on all relevant websites, we have priced it at the lower end of the range at which similar homes are listed in the area, but still not happy with the applications.I would be interested to hear what folks, knowledgeable about the Austin market, think...is there more that we can do?

Work on each Milestone, in order, and Don't get sidetracked by "shiny objects of distraction" that takes you away from your path.