Literally, there is no best option, only what fits your goals based on the info we know now! 

I do those things using a few excel spreadsheets … what you are working on sounds super handy!

Use tools like BiggerPockets Rental Property Calculator and Excel templates.

For example, you go to a high property tax state like Texas and you may find a property that appears to fit the 1% rule but once you factor in the $500/month property taxes and $100/month insurance your potential cash flow has gone up in smoke.

You make an excellent point about how certain issues may not become apparent until the tenant has lived in the property for a while, and that’s completely understandable. 

Two things:  1) You must find a real estate deal that fits your needs, so expect to have some due diligence here. 

You can take a distribution from the IRA, pay the taxes (plus penalties for premature distributions), and then use the funds as you see fit.

If this young person has no interest in RE, BP may not be the right fit.  

My personal favorite (and where I currently live) is Belmont, NC, a charming town about 25 minutes from Uptown with excellent restaurants, bars, breweries, and community events.

Hi Craig, excellent question!