But if he has bad feelings/is annoyed/feels put out by his father selling the building, there is a good chance he will take that out on you and be non or late paying and/or a PITA. 

If it were me I would have to balance out the pros and cons of each method, like if my company has had a really bad year I would be more hesitant to do the 401k loan.Using a 401k loan can be a useful tool but personally I think of it more as a backup plan if I have a issue with financing.

This is best possible place to learn from the experiences (good, bad, and ugly) of other investors.

A bad tenant in a room rental may cost you a few grand but a bad foundation or sewer can cost you tens of thousands.

A balloon in three years may put you in a bad situation.

You can't fix a bad neighborhood.

@Michelle Dunn I think it depends on how bad you want this place.

Then we had really bad rain, it caused a leak, which lead to a few pieces of dry wall getting mold so we fixed the leak, treated the mold and replaced the drywall. 

I wont waste everyone's time hear, but if you want to hear how bad things can go with a rental property, feel free to contact me at (the website didn't allow me to post my email). 

I've spoken to a few people who live in and nearby the town - all of them say it used to be bad but hasn't flooded in years, and the water level doesn't rise as much as it used to when it does rain.