401K for Down Payment

[John Penola]

I'm a first time investor. My goal is to buy my first rental property in the Indianapolis area by Feb 1st 2020. I've been listening to BP for about 18 months and have read 10-12 real estate books.

I'm considering using my 401k to fund the down payment on my first purchase. I know there are many things to consider......looking for any advice from someone who has done this before?

Thanks,

John Penola

[Justin Seng]

@John Penola I agree with @Adam Williams. I took out a 401K loan to get started. While the money I took out wasn't making money in my 401K I turned the $50K loan into 2 properties using the BRRRR method. I now have $75K worth of equity, 2 cash flowing properties and I can pay the loan back with the refi. It may have risks but it worked great for me.