Those looking to invest their 401k funds in real estate through a 401k loan can learn more about the loan rules by visiting the following IRS link. https://www.irs.gov/Retirement-Plans/Retirement-Pl...

@Gina CresseSee following link to lean about the prohibited transaction rules.https://www.irs.gov/Retirement-Plans/Plan-Particip...

Think of it more as an early retirement plan rather than a "immediately quit your job" plan, that is of course unless you find killer deals that I've not personally seen/heard of with the exception of MAYBE 1 within the past several years.

Those who have real estate in their self directed IRA or 401k can capture the best of both worlds - an asset that performs well (and that they can understand more easily than the stock market) coupled with the tax advantages of a retirement account.

You want to be a Rel Estate Investor...so don't sell Real Estate that you have (unless there is a compelling benefit to do so).Good luck...pick a plan to retire your debt...Dave's is one of the best...stick to the plan...it will work.

We are retired.

My wife & I stay there 1 month a year and plan to be there at least 4mo/year when I retire in ~5years at 70. 

So you've got equity gained by retiring the debt with the tenant's payments plus the equity gained by the asset appreciation and it's like a double bonus.Debt that is not productive or is for depreciating assets, such as for old credit card debt or automobiles, is the type of debt to avoid.

I'd like to create a large enough portfolio in the next 5-6 years to semi-retire and transition to REI full time.  

Seems to me cash out refinance is the way to go, keeping more money in my pocket, and readjusting the cash flow of existing property to fit a specific income threshold over time to minimize income taxes in retirement (Right now my taxable income is in the low to mid six figures but in retirement I plan on keeping my realized investment income low so I am free of capital gains taxes).Plus this way I can always come back to the Seattle area and move into one of my rentals if my retirement destination (Florida) doesn't work out.