A lot of hosts I know use pool fences, safety signs, and provide life jackets to help reduce risk.

Is it fairly priced for the size, location, quality, and other factors?

Good property managers are in high demand.

I also doubt very seriously that any brokerage/custodian is going to allow this kind of loan with 401k assets; it's likely going to need to be a 401k general purpose loan, which is highly regulated (as someone else mentioned). 

If we're going to just talk in hypotheticals, of course anything is probably possible anywhere but highly unlikely. 

If you expand your rental business in the future, an LLC may be worth considering, but for now, keeping good records and securing appropriate insurance should provide adequate protectionThis post does not create a CPA-Client relationship.

The deal is risky unless you know the market well, have experience executing this strategy, and have accounted for the quality of the asset and tenant. 

I am finding it difficult to find deals due to inaccurate rental projections with high prices and low supply.

I've also done some high level analysis of Nashville TN, Tampa FL, and the state of Georgia.

Since the high rent properties usually involve less work.