The repayment terms for a 401k participant loan are equal monthly/quarterly payments of principal and interest (typically prime plus 1%) over a 5 year term (longer if used to acquire your principal residence).Please note that if you take a full $50,000 and then pay back the loan, you can't take another $50,000 until 12 months after the first loan was fully paid back.Per the loan offset rules that went into effect with the 2018 Tax and Job Act: if you leave your job and the loan is current at the time you leave your job but then the loan goes into default because you left your job, you will have until your tax return deadline (including any timely filed extension) to make the loan current by depositing the outstanding balance into an IRA (and thereby avoid the taxes and penalties that would otherwise apply).Alternative: Rollover Funds to A Solo 401kIf you are self-employed (i.e. active self-employment earned income separate from your w-2 income) with no full-time w-2 employees, you can set up a Solo 401k and then rollover your 401k funds once you leave your current job [NOTE: You generally can't rollover funds that you saved to your current employer plan until you quit.].You could then take a loan of up to 50% of the balance not to exceed $50,000.

Shoe molding or quarter round is amateurish, yet your guy want's to charge you up the ying yang. 

I make quarterly inspections in my units.

(Ie- either repainting or covering with quarter inch Sheetrock?)

I expect it will be more complicated because I will not have filed quarterly self-employment tax returns. 

A typical structure might pay you quarterly dividends and then a larger payout when the property sells.

For the rest of the wall up to the ceiling, you could use a non-textured quarter inch MDF.

And the interest amount must be at least $10 or so before they will cut a check to the tenant, who has to provide a 1099 when the account is opened.Given that the interest rate on that kind of account is about a quarter of one percent, tenants only get a few cents or dollars if/when the account is closed.

@Carson KesnerIf everything he is doing is legal....I would put the money in escrow, make sure he understands it is not refundable, draw out his rent monthly and pay your quarterly taxes based on your in come from that.

He has been making false income and expense statement and putting them out each quarter.