Building a Fourplex and funding through 401 (k)

[Lisa Tanner]

We have 36 acres of raw land that our house sits on. We got it for a great price and are wanting to build a 4 plex on our front 5 acres, using our 401 (k) savings.

my husband and I are new to real estate investing. This will be our first investment. We have 36 acres, and are wanting to pull $55,000 out of our 401(k) and roll it into a self directed IRA, use that as the downpayment for a fourplex on our front five acres. We know that after expenses and setting up a LLC all income would have to go back into the 401(k), but we also have about $5,000 to put up of our own money so we could get a small percentage of cash flow back to us as well.

Has anyone done something like this before and have advice?