borrow from 401k or pay with saving accounts.. help with your suggestions

[Tom Server]

Hello, 

So, I'm looking to pick your brains for a bit. 

I'm about to purchase an investment property. I need to put down 60k for my down payment. I'm trying to decide what is the best strategy.

Not sure which route to go. 

1- I have 60k sitting in a saving accounts collecting a 4.60% interest each month. I get about $230 a month just sitting in my account 

2- I could borrow as a loan with my 401k, which I would have to repay myself back. The longest load is 60 months, with a 9.5% interest rate.. which gets paid back to myself.. roughly pay myself back 75k over 5 years... payment would be $1160 a month taking out of my check .

3. I only gross $5600.. after taxes, benefits, 401k. its only  $3800 a month.. and if I take the 401k loan that's another $1160 out of my check 

4. So I'm a little of unsure how to go about this.. I might be able to set up a repayment of the 401k loan out of my savings each month. or i can set up a transfer from my savings for $1160 to my checking to making up the differences.

So not sure if I should just lay out the whole 60k out of my savings and not worry about any repayment. Or take the 401k loan.. collect some of the interest from the savings and just pay it off but as the payments go down less interest i will get back 

Any other suggestions or ideas ?

thanks 

[Andrew Postell]

@Tom Server it very rarely makes sense to borrow 100% of the value on an investment property.  You would be bleeding money on that property each month.  I would highly advise to use your savings to execute.