Because once you pulled the loan out you are depleting your 401k of the funds that could be invested and producing much better yield, for example: if you take personal loan from your 401k you pay it back at 5% over 5 years.

By renting a second place for a period of time, you are just worsening your financial situation by increasing your expenses while not adding anything to the asset column.Personally, if you're OK with living where you are now, I would use down payment and go hunting for an investment property that will produce positive cash flow to help offset your existing losses on the condo.

In Exchange for allowing us access to these funds:My wife and I will continue to rent out the home and cover all utilities and the mortgage. 

I'm not used to framing it in this way, I usually produce financial reports from the perspective of a buyer or seller.I'm interested in any and all feedback, I'm only just beginning to formulate a plan.

That is 1 vacancy/unit/year.At that price point is the landlord expected to pay any utilities?

Splitting utilities can also be an issue.As for it being 147  inspect it like you would any house. 

Utilities?

We are aware of the permits, utilities, and drawings and such that needs to be done to make this happen and the approximate cost to make these improvements.  

Just search some of the marketing forums on BP to see what marketing strategies other investors are utilizing today to fit your investing strategy.

A) 5/1 ARM – 20-year Term; Up to 30-year AmortizationInterest Rate Options:1) L5 Resi Owner-Occupied 5/1 ARM No Point Rate + 1.00% + 1 point2) L5 Resi Owner-Occupied 5/1 ARM No Point Rate + 1.50% + 0 pointPresently: L5 Resi Owner-Occupied 5/1 ARM No Point Product is set at 2.50% therefore, the CML Non-Owner Occupied 5/1 ARM rate would be1) 2.50% +1.00% = 3.50% +1 point2) 2.50% +1.50% = 4.00% + 0 pointTerm: Max: 20 yearsAmortization: Up to 30 yearsFloor: The initial rate on the transaction will be established as the Floor rate for the life of the loan.Repricing: At the end of the initial 5-year period, the interest rate would reset to the then 1-year T-Bill Rate (Index) plus 325 basis points (margin)No prepayment penalties requiredInterest Rate Repricing Caps: 2% +/- at each change date; 5% +/- over life of the loanClosing fees: Utilize mortgage calculator fee scheduleStandard commercial real estate loan underwriting guidelines are required (i.e.