Investing advice Houston TX Area

[Wally Martinez]

Hello Fellow Investors,

I'm still a newb and have not found my first deal yet. Recently I was having a chat with some patrons at a coffee house. They told me that they recently purchased a house using 401K funds as a first time home buyer. They were waiting for some renovations to be complete and now they do not want to move in, but instead want to rent the house and move into a house left to them by a departed family member.

They asked me if there would be reprecussions from the 401K loan because they are not actually going to live there. I couldn't answer their question because of my inexpierence. Can someone chime in with what could possibly happen?

[Carl Fischer]

@Mark Sewell

If they took a withdraw from your 401(k) as a first time home buyer there won’t be any repercussions if they don’t move into it they just can’t use the 401(k) for another purchase.