I that was possible, I would have done this many times myself. 401K money comes from ore tax employment, and you avoid paying taxes.

To best advise you, I would need a lot more information about the strategy (BRRRR, fix & flip, buy & hold), the properties (cost, condition, ARV, vacancy, current rent, etc), and you (skills, employment, income, DTI, home ownership, equity in your home, and down payment / amount of savings)

Again, that depends on the town, crime, employment etc.

I've been self-employed my entire life so for me I don't know any other way.

Although currently untested, those employing the structure I have described are counting on the fact that the Wyoming Courts will not allow Florida to put a charging order on a Wyoming LLC, thus protecting it's owner.

If so, as long as you verify their employment I would not worry too much about that.  

I have good w-2 employment- that’s easy- what about my rental income?

I have good w-2 employment- that’s easy- what about my rental income?

Like anything, there are ways to get in over your head, but this method seems far less sticky a mess than what you’ve proposed.Best of luck in whatever strategy you employ! 

Call their work and verify that they work there and how long they have been employed.