Thoughts on Using 401K Loan for Down Payment on First Multi-Fam

[Cody Schooley]

I have about $5-7k saved up that I would be willing to invest in a deal. However, I have about $25-30k that I could tap into via a 401K loan that I would be paying back to myself. Looking to put this money into a small multi-family deal possibly with some partners. 

Do the benefits of potentially getting a bigger/better cash flowing deal  by tapping into the larger sum of cash, or should I be looking at a smaller deal?

Also, what are people's thoughts on long distance land lording for a new RE investor? 

Interested in any and all feedback from the larger group. Very excited to start my RE journey and looking forward to learning from you all.

Thanks in advance,

Cody

[Basit Siddiqi]

I approve of people who want to tap into the 401k loan to go towards a down payment of an investment property.

A) The interest rate is low
B) The interest is paid to yourself
C) It will allow you to get into real estate faster

Best of luck!