The seller would not have to pay federal tax if under $250 profit, but we would have to if we actually bought it and flipped it. 

Unless the goal is to borrow against the 401K.Assume your marginal tax rate is 30% between federal and state taxes your 100K IRA balance is 60K factoring in the 10% penalty.Let's say you get 10% return on your investment, so that is 6K. 

These are some really competitive areas and to be honest lower bucks all around Levittown is one of the most popular and competitive markets right now since there seems to be a good amount of flips down there.       

My opinion the risk is not worth getting caught committing fraud on a federal loan..

Electric is a very popular heating source and is found in a high percentage of older homes.  

I'm a few hours south of you, but work for Weyerhaeuser and used to live in Federal Way.  

There are several ways we fund deals.. some of the deals we fund are mostly through business lines of credit, we can liquefy into cash and then purchase property with that at a much lower interest rate than hard money,  this method  has become a very popular way to finance more deals.

I also have zero knowledge of raising private money and any federal regulations that might apply.  

@Nadia White From what I've seen, that REIA seems to be the popular one to attend.  

Most major investors require you to hold the loan for a certain period of time for a few reasons -buys them time to sell your loan on the secondary market -bankers lose their commission if a loan is refinanced with another investor/lender within that 6 month period -required vesting is part of federal regulation  that keeps an individual from essential making a living by doing constant cash-out refis -if you refinance or pay off the loan in the first 6 months, typically you will not incur any pre-payment penalty..but the bank does and it eats that cost-required vesting allows you to establish payment history that shows on credit 3.