If this option doesn't work, here are the alternatives and their pros/cons.     

It's a GREAT alternative to Conventional Lending but they are indeed more expensive loans.  

I think your personal credit is the most important to focus on, but having business credit is also a really good alternative in creative financing (e.g., not using hard money lenders and instead using introductory periods to get into properties.) 

In either case, you might also consider using a VA-Renovation loan (contact Deborah Joslyn at University Lending), which is a good VA alternative to the 203k and might allow you to find those uglier 3+/1+ homes in need of work at a lower entry point and with no FHA-imposed PMI. 

I would love to get input from others as to alternative strategies or maybe better areas for fourplexes.

Alternatively, you can start thinking of how the BRRRR strategy can work for you. 

@Sean HarrisAn alternative to taking a 401k distribution is taking a 401k loan.If the 401k you are referring to is your current employer 401k, you may able to take a loan from the plan.If a former employer 401k, you likely can't take a loan but may be able to rollover funds to a Solo 401k which does allow you take a 401k loan.If you are self-employed with no full-time employees and have funds in a former employer plan and/or non-Roth IRA, you can set up a Solo 401k, rollover the funds and then take a 401k participant loan.

Any Self-Directed IRA custodian will be able to set you, or whomever you are working with up with any type of IRA (Traditional, Roth, SIMPLE, & SEP) and that IRA will be able to invest in ‘alternative’ type of assets.

It’s good to have alternative exit strategies.

What are good alternatives or highest and best use for lots in urban areas that are former self service car washes?