I think the one thing you should always be careful of is representations that are not accurate, which the tenant could follow up on."

But as @Justin Manley mentioned is the bigger test with many having had to live off savings for a month plus at this point. 

The "self-directed" aspect kicks in each year, since you must accurately value your investment annually and report the value to your IRA custodian.How They May Be Used to Buy Real Estate The first step is setting up a Self-Directed IRA.

Is their assessment accurate?

Another thing to note is if its a 3 or 4 unit, it must pass the FHA self sufficiency test, which at times, makes it harder to get loan approval.

I'm viewing this is a real good TEST of the strategies we've been using over the last 9 years or so.Hope that helps some!

If you numbers are accurate. 20k rehab nets you 274k of equity, unlikely.  20k rehab would be a bare bones rehab.

Payments on a 401k loan taken under the CARES Act must be paid back starting in 2021 over a 5 year term.Here are the details regarding the loans:NEW LOANS:The CARES Act which was enacted to provide relief to individuals impacted by COVID-19 allows for increased 401k loans and more flexibility for repayment of these loans.Specifically, you must be an individual who meets one of the following conditions to demonstrate that you have been impacted by the crisis (and it will be your responsibility to retain documents in your files that demonstrates that you are a qualified individual):Individual who is diagnosed with COVID-19, with a CDC-approved test;Individual whose spouse or dependent is diagnosed with COVID-19, with a CDC-approved test; ORIndividual who experiences adverse financial consequences as a result of being quarantined, furloughed, laid off, having work hours reduced, being unable to work due to lack of child care due to COVID-19, closing or reducing hours of a business owned or operated by the individual due to COVID-19; or other factors as determined by the Treasury Secretary.On or before September 23, 2020, such individuals take a 401k participant loan subject to the following terms:Maximum Amount of the Loan: 100% of their 401k balance not to exceed $100,000.

A lot of the uncertainty that causes buyers to back can be removed if the Seller ACCURATELY and COMPLETELY lists all income, expenses, and turns over copies of records. 

Test it out and see how it goes.