Buy some of both and, even better, force appreciation, cash out, and then cash flow afterwards.  

It is likely costing you 5% - 8% annually in lost income.You need to pull out all the equity and force it to earn it's keep in other investment properties.Cash should never be allow to wallow in a investment property.

Currently sitting in a 5/1 ARM, at my 6th year and set to adjust in November.

It is not a investment it is simply forced savings and in reality is actually a liability.Reality .... renting is far less expensive than owning and you can afford to save even more money than the forced savings of a mortgage.There is zero financial logic in owning a personal home yet we all seem to do it.

I am so thankful I didn't score a great job...Moral of the story... bet on yourself and put yourself in situations that take you out of your comfort zone and force you to grow.

I have a health condition that forces me to sleep well and keep stress low.

If default shall be made as set forth above, then, in any of such cases, the Landloard may, by written notice to the Tenant, immediately declare this lease terminated, and in such event, in addition to any other action or remedy which the Landloard may have at law or in equity to recover damages or otherwise by reason of a breach by the Tenant of provisions of this lease, the Landload shall have the right to remove the Tenant by summary proceedings and thereafter the Landlord may reenter upon and take possession of the demised premises and every part thereof, either by force or otherwise, without being liable to any prosecution, action of damages therefore and have and enjoy the demised premises as of its former estate free, clear and discharges of the lease and of all the right of the Tenant hereunder; and the Tenant also shall pay to the Landlord upon demand all fees and expenses, including reasonable attorney's fees, incurred in connection with and in obtaining possession of the demised premises as aforesaid.

All plan transactions must be done at arm's length.The 401k could purchase a property using non-recourse debt financing or partner with someone who is not you, lineal family or a business owned by you or lineal family.

After reading The BiggerPockets little/no money down guide, I thought I was armed with enough information to begin getting the money together for this great deal.

., we would be doing him a favor, but I would also be getting a great deal on a house we could later rehab ( causing forced equity) and rent ( cash flow).. yay?