I am able to comfortably use $7,000 of my 401k + $5000 of savings as a down payment totaling 12k down payment. 

(dude GET IT RIGHT MAN.. sheesh.. its DANCING 4 DOLLARS) D4D.Now, pay attention now.As a master at lead generation, marketing and conversion I will humbly advise to look into SEO.We get a ton of leads for free without spending any money or leaving the comfort of my chair.

With a spouse and three kids, I’d be looking to own a home FREE AND CLEAR for MY family before I’d be comfortable jumping into this amount of debt... despite your special lender.

I would maintain life insurance until the point that I am comfortable that my family would be okay without me.

At this point, I don't feel comfortable holding on to these policies anymore.

Either SFR or MFR whatever you are more comfortable doing. 

A name like 'A Plus Properties' or 'Comfort Homes' has a much more positive vibe.

I recommend Long Distance Real Estate Investing by David GreeneResearch - Pick a few markets that you are comfortable with, then do your own due diligence - look at things like, population growth, unemployment rates and economic outlook.

While SFH are 2-4 unit MFH are great for some folks, it sounds like most folks end up migrating to larger MFH deals once they're more comfortable and able to do that.

Ive stayed away from the NE to avoid the Snow & Cold weather (there are other factors as well), one less thing for me to manage..Everyone has difference comfort levels, I understand wanting to be 2 hour driving distance from your property but for me taking a 2 hour flight to SE is an expense Im willing to do to be in my desire market.