Unless you desperately need the cash I would not take it out of a retirement plan. 

I seem to have much more demand in the summer months, and Im not having much response for a 2/2 condo that I am currently leasing for a Nov. 1 move in.  

If a client has a renovated home near downtown Raleigh, that demands a different tenant than an unrenovated home from the 1960s a block over.

I do not see them paying anything for your TI unless they are really desperate.

The downsides I anticipate are lower demand, lower rents, less liquidity/harder to sell, difficulty getting contractors and handymen out there.

I am in software and it is very hard for me to hire enough developers here because of the growing demand.

Hi for those of you that remember me, I was hounding the forums months ago desperately looking for a mentor.

However, unless you do the work THEY demand you do (fyi be coachable to every item... which could conflict timewise with your job, family life, other commitments, etc) you don't get a dime back.

This is due to less competition, low inventory / tenant demand for a finished product in these areas.  

No, you will need money set aside to handle capital demands related to owning and dispostioning the asset.