Cash out 401k to buy 4plex?

[Roberto Medina]

I own a summer charter fishing business and gross about 120k a summer during the fishing season, I am a full time police officer and gross about 100k doing that, (after taxes and deductions about 68k) I have about 200k in retirement and have taken unpaid leave to put more energy into my business as this is the busiest I’ve ever been ( people eager to fish in alaska after covid) I want to cash out my retirement and buy a 4 plex that will cash flow around $2,800 per month, I’m just not sure if it’s the right move but it’s what I want to do.. I have no mentors or people I can talk to who have done what I want to, so I’m really looking to be pointed in the right direction. My mom worked as a CO for 20+ years and had a degree in finance, she says bad idea but she worked until she was 65, not the path I want. Thanks for the help guys I really appreciate it.

[Aaron W.]

@Roberto Medina Before you make the decision, what is your why in investing in real estate?  What goals do you need to accomplish your why?  Will purchasing the 4plex move you in the direction of accomplishing your goals?

Many traditional investors don't understand real estate, so anything other than stocks/bonds is too risky. I believe in healthy diversification in different types of asset classes such as stock/bonds, real estate, etc. 

Does your cash flow number take into consideration all the potential operating expenses of the property, such as repairs/maintenance, capex, insurance, taxes, etc.?