401k combined with home equity loan

[Jimmy Y.]

Just a though...should I combine my 401k and a home equity loan to buy a rental property...I currently own a rental that is giving me 1,100 per month and I wanted to maximize my return...by combining a home equity loan with my 401k it would be an estimate 150k with the 80% and 401k after taxes and penalties.

[Dmitriy Fomichenko]

If I understand you correctly you wish to take a distribution from your 401k, right? If so be aware that this will result in taxes and penalties if you take premature distribution. But you can do that if you wish.

Once you take the distribution this becomes your personal money and you do what you wish with them, including pulling together with the home home equity loan to purchase another property.