Could you take out a loan against a retirement plan (penalty free) and pay it back with interest into that retirement account?

I would recommend utilizing the house rules to write anything and everything you want to follow, ensure guests read it, and put cost based penalties there.

Terri Wyzkoski I should have mentioned that the lender for both properties is a private lender that only does purchase and refinance (including cash-out), and it's a loan product that is specific to income producing short-term rental investment properties only (no primary/second home stuff)...however, there is a 5-year prepayment penalty.

Is a P&S with a large bailout penalty out of the norm, or unenforceable?

I needed a better yield alternative than a checking account but without penalties to loan out the money and disrupt compounding or have a chance to lose principal and CVWL has provided that.Unlike others on here, I think you should focus on small insurance premiums that are comfortable for you, mine is only $1644 for the year.

So they do a cash-out Refi to put a $200k mortgage on the property (80% LTV) with no prepayment penalty.

What was the UPB of the note excluding interest & penalty?

You can always pull out contributions penalty free and leave the earnings to continue growing.

If this tenant finds a place to move and leaves you are now chasing them for whatever your lease penalty is for breaking a lease or going after them in court. 

I've taking money out of my IRA, paying taxes and penalty, to invest in syndications.