If you are looking at the math buying a $100k house with 10% down will show a great cash on cash return but in 5 years with 1% appreciation will barely cover sales costs. 

And inflation is still barely visible in the wake of a coronavirus-induced recession that sapped demand throughout our economy.

I will require financing for the property, so will not participate in the auction (which requires "Cash" only). 

Please note that the account into which the funds are deposited must be the same type of account from which the funds were first withdrawn (e.g. withdrawal of pre-tax funds from a 401k could be deposited in a pre-tax IRA but not a Roth IRA - "like to like").Loans:Payments on a 401k loan taken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.

Even at my current job, I've felt like I've barely avoided the chopping block a few times during work slowdowns.It's a lot of insecurity! 

Assuming what you said is a real life deal, you're looking at a cash on cash return of approximately 3% which barely outpaces inflation. 

I can barely hang a picture on a wall (thank goodness for spackle) , but I've bought / flipped over 180 houses. 

At 3% effective rate, that loan is barely keeping pace with inflation in terms of relative purchasing power. 

I am barely a month into Bigger Pockets and loving the networking aspect of it all!  

The value of the property is always based on current sales data and what the market is willing to bare.