A tax attorney or CPA would be a good one to talk with about this as well.

Keep separate accounts for personal and business, and talk with your attorney about an LLC or corporation and the differences in paperwork needed and tax implications for each type of filing.

I was think about liquidating my 401k which after taxes and penalties would net me about $95k and buying 4 properties I can rent out for $500 to $550.

Purchase price: $600kRehab: $120k (Includes labor, finishes, taxes, insurance, utilities, etc...)Commissions: 2.5% = $20,500Sold for $820kProfit: $79,500BEFOREAFTER

But at the same time, next year when I'm doing my taxes and need to claim ownership of a house that I'm getting an income from....and I get red flagged and in trouble...that'd suck.

If you sell for $125k then there is no gain on which to be taxed.

I have some heloc available and I will outline that information below.Purchase Price: $575,000Revenue: $100,183Expense: $33,355NOI: $39,113Seller Willing to Finance with 30% Down: $172,500HELOC Availability: $220,000Appraised 6/2016: $575,0002013-2016: $200,000 in Renovation, proven with Tax ReturnI was hoping to use the HELOC for a down payment.

I'm looking for referrals for anybody that's can assist in helping set-up a legal entity for tax purposes the correct way, particularly in the Atlanta Metro Area.

Maybe a little easier than fighting city hall, but not by much. 10-4 on your comment about taxes.

Chances are that any tax saving you may realize from your rental property investment won't come close to offsetting the income tax and the 10% penalty you will  pay on the 401K withdrawal.