Also in this RE environment, good investment opportunities are not exactly falling from the sky. 

I'm looking for my first REI a house hack on a 3-4 plex Im primarily concerned with cashflow on the property and ease of management as this is my first property.

@Grant Snyder Solid rates to be at in this interest rate environment.  

I feel there is going to be an easing in the market and I want to be out ahead of it.

But i think i have her thinking about it now, Thats why  i joined this site to see if i can put her mind at ease and also mine.  

Acknowledge the large risk they are taking on and offer to ease their fears with it by any means you possibly can. 

One can say there are some volatility, but time will greatly ease them.

 :)I have a feeling that in speaking with our CPA, he will bring up the same points you've all listed, and then of course tell us it's a personal preference.Definitely understand we'd be taxed at our current bracket of 25%, but am not sure it would push us into another bracket, would have to check.Austin, current rate of return on the 401K is 4.85% for the past year, so not great.Am not a fan of the stock market, too many moving parts in the current environment.  

(Benefit is that each subsequent SFR increases with ease as they know mostly what to expect in terms of construction schedules, budget, city/county requirements, and the permit and plans will be basically the same)Lamest option, and this has happened to us, a client came in wanting to build a custom home, then turned around and went to RichUncles.com to just invest in real estate through someone else. 

One can say there are some volatility, but time will greatly ease them.