I've written a lot on the forums about all the reasons house hacking is the best strategy for beginner investors--feel free to take a look at those posts.I'd suggest starting with a more beginner-friendly strategy, get your experience from that, and THEN (if you want), try the more difficult strategies like OOS REI.

I always stayed away from Section 8 at that time and did Zero down purchase doing 80/20 loans and/or interest free loans as well. 

Feel free to email me as well or send me a messsage.

Feel free to send me a DM if you'd like recommendations for property managers, cleaners, etc.  

The problem with the reverse method you propose is I would have a payment for the 401k loan around $300/month and then the holding costs of the mortgage until the refinance so roughly $400-500 for a total of say $800 To me it seems like the more cost effective route to use the bloc to purchase and 401k loan for rehab.

I started to buy some REITs since I feel I can obtain the same “value” with total passivity.  

My best advice is to find someone who is doing what you want to do, and then offer to bring value to them (for "free") in return for mentorship, guidance, and knowledge. 

Feel free to connect for more info.Cheers to Your Success!

All my deals are less than 100k total and they rent for an average about 1200-1300/month.

You are free to refinance out of the loan into another type of loan with no penalty.