Very smart of you to be learning alternative ways to secure your financial future, as medicine is certainly changing.  

Over 2000 in DFW.Please look up ONEprop on the web.

With that strategy you are the bank and have the lack of liability and headach like a bank, yet your investment is ultimately secured by real estate.

Without any business information on their web site, it is hard to know who these people are.

IRS rules prohibit you from pledging your assets as security for the 401(k) plan's debt.While non-recourse loans are available, the underwriting is pretty conservative for this type of loan.  

(Since commercial financing can difficult to secure) I'd use the first floor or main house for the business and live either upstairs or in the mother-in-law suite.

The Lynchburg web site shows no property owned by KC Realty or Lamont Jones. 

I learned from on landlord on BP that charges a break lease fee that is almost close to the rent amount, thus allowing him to legally keep the security deposit in the case that the tenant breaks the lease.

How safe secure from breaking is everything currently?

(I would advise if the answer is yes to make sure no viscous breeds are allowed and also get an extra security deposit and possibly extra monthly rent.)Also, something that helped us that you might want to consider is for your credit check is that the score matters, but we look deeper than the score if there are things that come up (and in New Brit there are usually things that come up).If tenants are skipping out on "modern life essentials" like utility bills, cell phone bills, car payments that is a huge red flag.However, if it is a result of medical bills or student loans (or possibly a foreclosure during the crash) you may want to look past some of those.