@My Lo,First, if you have a 401k with your current employer you are most likely not going to be able to do it, typically current employer 401k can't be rolled over until you are either no longer employer or reach a retirement age.If your 401k is with the past employer then you are free to move those funds into another retirement account.

Talk to local banks and explain what you want to do, and work with them.For the reserves question, any cash or liquid asset (including retirements accounts) can be used as reserves.I would also make sure that you can rent out your house and actually make money when you factor in all your costs, including maintenance, capex, vacancy, etc. 

Those stagnant days are long gone and it scares me to no end to think that I would have to punch a clock until retirement time.  

Unfortunately my prior partner retired so the flip is with my former handyman who has opened his own business.

Or should I not make a loan without those terms included anyways, no matter what the LTV % is.You will always be on a recourse basis with two exceptions, when it is not allowed by law (as with retirement funds) or when you can show you don't need the money at all. :)

Never stop saving for your retirement - believe me, the days/years pile up and you're there before you know it... you win if you have resources to live generously when you are no longer working at a job. 

My neighbor told me once that he was moving in less than a year to his retirement dream home in Canadian lakes, MI.

Should be plenty of homes and owners/just past retirement age that will be turning in the next 10 years. 

I fortunately have not been sued but I would get a $1M umbrella policy and, if your net worth excluding primary residence and retirement accounts is greater than that, ratchet the coverage up accordingly.

The properties title is not insurable to the owner taking the property subject to because it violates the existing mortgage, but once that mortgage is retired then there is no cloud on the title.