There are commercial loan products available to first time investors although they are normally subject to a slight LTV reduction given the lack of experience. 

Access to Yes-MLS which covers 36 counties and in 3 states!!

@Seann Brown401k distributions are subject to both federal and state taxes.

If so you might be subjecting some of the rental real estate income to self-employment taxes.Best to rope in your tax CPA/EA.

Alot of sellers who contact me have high priced homes ("high" is subjective I know).

After doing a little more research I found that there is only one and it covers mostly in another area.

Any other info on this subject would be greatly appreciated.Thanks in advance for the help.

The $40k down is subject to capital gain on the year of closing.2.

I do not know how beneficial it might be to you but you might consider reviewing your entire project and see if there isn't somewhere you can shave off $500,00 worth to cover the cost of having a contractor buy the permits.

It would take a 4.5% ROI just to cover your admin costs and break even.You could look at simply opening a self-directed IRA with a low fee custodian like IRA Services Trust Co in the Bay Area or Kingdom Trust Co in KY.