Looking to start passive income in rental properties, with $200k in 401k

[Steve Lopez]

Hi, first post.  I am currently employed and make about $90k.  I currently do not own a home.  My wife and I currently rent a home that is owned by my in-laws.  We have 2 kids, one has moved out and the other is away in college.  I don't have any debt other than my daughter's school loans.  I have about $200k in my 401k and would like to use that in buying a rental property.  My goal is to create some passive income so that i can better prepare for the future.  Is this a bad move, pulling from my 401k?