401K loan or HELOC

[Christopher Mooney]

Hi everyone,

I’ve got great credit, good income, but not much liquid for a downpayment.

I'm considering either a 401K loan or a HELOC on my personal residence to raise money to do my first out of state BRRRR.

I’ll have more through the HELOC, but from what I’ve read a 401K loan is likely a lower borrowing rate and the interest gets paid to myself anyway. I’d need to get enough for a downpayment and will use hard money to find the remaining purchase and rehab (if I could find those terms). 

What’s everyone’s take on this?