Just trying to understand deal analysis to the full extent Peter

My understanding is that the exception for UBIT in a 401k does not apply if you get a loan where the amount paid in interest, points, etc is somehow dependent on the profit you make in the deal.

I'm kind of at the stage with the size of my investment portfolio, where I'd be comfortable paying off entire mortgages and just collecting cash.Am trying to understand if others had followed a similar path and what their rationales were for doing so. 

You seem to not have a full understanding of what wholesaling is.  

However, many new investors (or those unwilling to  learn) don't understand how to really do this - how to really estimate what needs to be done as part of a rehab in order to get the property not only ready to sell but also to be competitive with other homes on the same market, how to really vet a contractors bid, and as mentioned before how to choose the right comps.

I may not understand your comment regarding managing my rentals.  

You just have to understand why the bank is concerned...if you have no other source of income, in their eyes, you'll just be depleting that $200,000 on life's expenses until you run out of cash. 

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

I once upon a time was a Loan Officer so I understand a little bit about underwriting a loan and I just keep to "good common sense".

I would just collect some extra security deposit, add them to the lease(if kid is over 18) and make sure they understand they are all responsible for the rent and that an eviction will go on all of their records if they default.