Purchasing multiple properties in a short time

[Gina Mann]

Hi, We have 3 good friends who want to sell their primary house to us off market since they are retiring, want to relocate to FL and do not wish to bother with rental properties. We are thrilled (especially in this hot TX market) and is about to close one of the deals as a primary. We will have to purchase the other 2 houses in about 1.5 yr. Should we take 401k loan for down payment (50k)? Should we refi our current house to take out 100k equity (kinda do not want to cuz we have a great rate 2.75 as a primary)? Can my sister buy one with us (co investor? Not sure how this works. We want to refi and eliminate her ownership after a yr or so) or should we go with a hard money lender and refi later? We never had an issue getting a loan and financially stable with strong w2 income & good credit. The houses are in very good area DFW, about 10 yr old and around 300 to 360k fair Value. The sellers are ok with 5% down all off market but don't want to do installment sale just want to sell retire and move without hassle. 

we are thinking about taking 401k loan 50k, purchase the next one as a primary 5%down again  (after a year or so since we are about to get one as a primary) then buy the last one as an investment. The third house might be hard to come up with 20% down as an investment. Need to eat ramen noodles lol. Another reason for 401k loan is that we want to reduce taxable income to offset w2. 

Thanks for your advice in advance.