However, the insurance broker I met with estimates in the 50-60k range.

It doesn't matter how the lender is (private lender, a broker, bank, financial institution, etc.) - the loan to the 401k must be "non-recourse", meaning that you do not provide personal guarantee, the property is the only security for the loan.

Essentially they're designed to fill the void in the market between hard money and conventional financing.Find a good mortgage broker and have them work out some scenarios for you. 

I researched like crazy over the last 2 days and after all income, costs, taxes including tax benefits, maintenance, vacancy costs, broker fee etc, I expect to get about $200 net income a month for the place.

He also did the taxes for my fiance who is an RE broker. http://winteraccountancy.com

Are you in any way legally bound to your broker?

I'm a California real estate attorney and broker. 

Brandon Abbott and I toured/shopped 11 true off-market, non-brokered properties in the morning.

@Paul Passafiume, tell the insurer or insurance broker that you want the named insured to be your LLC, the titleholder. 

Hi Frank,I suggest you run the numbers through the BiggerPockets rental calculator, and see if it looks good based on that.As far as financing, this will be a commercial deal, so you should either find a commerical mortgage broker in the area, or start calling the local banks in the area that may finance the deal.Best of luck, and feel free to reach out if you need any help!