Newbie question: Save cash or borrow from 401k and start looking?

[Andrew Solano]

Greetings my Fellow BP'ers!

My name is Andrew Solano from Houston, TX. I'm a newbie and have been listening to BP for a few months now. I purchased my first home in 2013 but lost it due to a divorce. My ex-wife transferred the mortgage to her name, therefore it never impacted my credit negatively. I'm 32 y/o and am currently employed, earn around 70k/year, but I've always been interested in Real Estate investing for passive income. So I've decided this is the year to start!

I've saved around 6k this year but am also able to borrow from my 401k and repay myself the interest. If I wanted to I could borrow 30k within the next few days. My total debt is under 10k and it mainly consists of my car loan. My expenses and rent are pretty low and my credit score is in the 760's.

What would you guys do in my situation? Wait to save the cash for a down payment or borrow from my 401k and start looking for my first deal? Obviously I would still keep saving money at the same rate I am now. I plan on keeping my job until my passive income gets to a point where I can do this full time. 

In addition, should I start under a Sole Proprietorship or LLC? And should I get my real estate license?

I know these are a lot of questions but I really appreciate your feedback and advice in advance!

-Andrew Solano