Finding a good flip opportunity on the barrier islands of NJ has become increasingly hard due to local ordinances restricting the amount of renovation to 50% of the “improved value” (assessed value of the structure) before having to raise the home to meet the new min flood levels.

Sometimes clogged up filters restrict airflow and leave the unit running harder and longer than usual.

You first need to know if there are any restrictions in your state landlord tenant regulations.

@Jeff Beaman just be sure to check your local ordinances/codes around basement dwellings...these are usually pretty technical and restrictive...in general, basements are not considered "habitable"...and to make them habitable is pretty pricey.

If you are at 24%, that may not leave you tons, but like I said above, if the numbers work, why not cash out that extra and use toward a downpayment and skip FHA and the restrictions of it and PMI.

Overlays mean the individual lender's guidelines or requirements are more restrictive than FHA guidelines....or Fannie or Freddie.   

Sure as long as there isn't any STR or sublease restrictions in your rental contract and your city/county allows it.

Any other restrictions?

Distributions are handled the same way, and subject to the same restrictions, as a regular 401k. 

So that would ultimately restrict my search to investors selling off rental properties?