Additionally tenants tend to destroy properties they live in resulting in additional renovation to sell. 

Of course at age 23 with no wife and no kids, optimism abounds and it worked out. 

One additional snag is the size of the loan- 52-58k.

Could you qualify  for additional purchases if you sell and use that equity as a down payment to turn 1 rental into 3-4?

@Gary Dawson, there is a way to do that with exchange funds but it is an additional process called a reverse or reverse improvement exchange. 

After all inspections done, you'll get removal of contingencies and then, if Buyer changed their mind - your Seller gets EM.Even when people are still living in the property, they allow for the Buyer to get inside - for example, their mom travelled from another state to see the house her kids are buying.During the time of contingency/pending sale it's not totally Sellers house anymore - it's more like Buyers house.Of course, you advice not to abuse the right to check it out but it's understandable that people want to see it again - especially if it's first time homebuyers or much more expensive house than their current.They could get cold feet without seeing the house if you're afraid of that, but if they see something in the basement like water after rain - it's better to agree on remediation during waiting for the mortgage commitment rather than at final walk through.That's might be a deal breaker at the last day,  while during the waiting time you could work it out. 

Compared to an IRA, Solo 401k contributions limits are roughly ten times higher.There is no custodial requirement for the 401k.You don't need the additional expense and administration of an LLC to have checkbook control.You can borrow up to $50k from the plan; IRAs do not allow for participant loansThere is a built in-Roth component whereas IRAs are either traditional or Roth, not both.A spouse can also participate in the same Solo 401k plan.The Solo 401k has additional tax benefits over an IRA when investing into real estate using leverage.The penalties for prohibited transactions are less severe, though it's best not to utilize this benefit :)

Please feel free to also reach out to me if you are interested in working with me or have any additional questions. 

In addition, our lender will pre-approve the LOAN which allows underwriting to happen before we find a property.

Additional costs such as closing costs (investment property and home equity loan, vacancy in the beginning, repairs)My main question is: Is a home equity loan a reasonable way to generate money for your first deal?