Beginning to invest - 401k funding

[Glen Knight]

Hi all, after a few life changes I'm looking to seriously begin investing. I've been reading and going to different investing events. 

My credit is on the low side and my savings are low as well. I'm taking the time now to understand and increase both of these, but in the meantime, I'm looking for ways to get started. Reading around I found that I could look into HUD homes and foreclosures, for financing I also read that you can use up to 10k from your 401k to finance your first home.

I'm looking to see if anyone has had a similar experience or any advice regarding the strategies I've spoken about. 

[Natalie Schanne]

Glen Knight - it sounds like you're making good first steps to learn about the opportunities. Keep listening to podcasts and reading. If you have low credit and savings, I recommend you work on improving your budgeting skills first so you can save more cash. You can lose a lot of money by incorrectly budgeting and/or running out of cash in real estate.

There can be big, unforeseen expenses that can make you lose tenants nearly overnight if you can't repair them asap. (Broken furnace, hot water heater, etc.). I bought a foreclosure and the home inspector said the roof was fine for another 5 years. Not exactly. I chose to spend $8k cash on it (for a 20 year fix) within the first 6 months because I was getting thick sheets of ice down my exterior door (in the winter) from bad gutter systems.

Additionally, do you have enough W2 income to help you get loans?

I have $$ in 401k's I can't borrow against because I don't have W2 income from that employer to repay the loan. I used to work for the fed govt, but since I no longer do, I cannot borrow a house down payment from TSP (401k) or withdraw without penalties until I'm 59.5.