401k lost opportunity VS Real Estate returns

[Steven Torrez]

Hello,

I have a 401k with 30k in it. I can take a loan out from it for 15k for 5-10 years. The interest rate is 3.5% which gets paid back into my account. So the question is, should I take out the loan on my 401K to help with the down payment on my first house so I can potentially avoid the PMI. Seems the PMI would be as much as my 401k loan payment.

Also, do you think that you can earn better returns on your money in buy and hold deals than the same amount of money in your 401k would earn you?

Im not saying I want to stop my 401k, just that I want to use it for my first house to get the ball rolling so to speak. I'd still be investing in my 401k as I don't want all my eggs in the real estate basket.