I know I can take out the lump sum and be subject to the tax penalty for early withdrawal.

If you are audited as a real estate agent, the IRS will typically disallow the s-corp and you will owe back taxes and penalties. 

We see evictions as part of being landlords and thus a skill we'd seek to learn from someone with the requisite experience and knowledge. 

There's so many variables holding you back:LLC - Private lenders will lend to them, but the property values are too lowRate - what you're seeking is bank numbers, but don't qualify for banksCash flow - you mentioned it being a cash flow issue, which lowers LTV with DSCR lendersRural - Well, there goes 95% of the private market.

Hi everyone, I’ve been listening to the bigger pockets podcast for a few months and I’m very new to real estate investing.
I have an opportunity to get a townhouse for $15,000-$20,000 under market value. This townho...

But, if multifamily isn't going to create the returns you are seeking, but SFHs are, then I would not be stuck on the moving to MF.

Without overstating, the penalties against this are onerous, up to and including recission.

I think it's human nature to seek low effort objects or success.

It will be critical to determine if they intend to include an "amortization" clause, which will require existing STRs to come into compliance (or seek to exist) within a certain time frame.

If you are seeking out asset accumulation and equity appreciation over the long term then there are certainly fortunes to be made.