401k Loan for Down Payment

[John Renna]

Hi,

I know one strategy is to borrow from the 401k .  I was thinking of doing this to put down the 20% down payment on my next deal. 

I don't currently have a deal in the works.  I just want to hear the pros and cons from anyone who has done this.

I can get a 5% employer based where the interest I pay back to myself.

The question is say the house is 150k....It is really a 180k loan.   Not sure the Cash flow would be very good for that unless you got a supreme deal.  Has anyone done this?

Thanks,

John