401K Loan for Rental Property

[Jamil W.]

Hello All,

Just looking for a little advice. I just purchased a condo in Arlington, TX with the long-term outlook for renting it out. I bough it for roughly 87k, and I purchased it because the area is growing and it's close to entertainment (Football, Baseball, Six Flags, Hurricane Harbor, Texas Live, restaurants, bars, etc - You get the point). My neighbor upstairs, is looking to sell his unit and then rent it out from me (He'd like to be more liquid). In order for me to purchase this condo, I would have to borrow about 20k from my 401k for a down payment (20%) to purchase for under 100k - I don't have much liquid cash available. 

I think I could rent it out for about 900/999 (comps in the area/complex). 

Mortgage Payment - roughly 400

401K Loan - 350 - For 5 years

HOA - 188

Total - 938 - Not including insurance/taxes, or anything else I'm missing.

If you were in my position what would you do? Do you think it's worth it? Any information you can provide would be greatly appreciated.   I understand there are a lot of unknowns but I just need any advice that can be provided. I'm tired of living in the rat-race, and would love to make this a fun time thing over time. If this is a dumb idea, please tell me, you will not hurt my feelings.

Thanks.

Mil.