401(k) loan for down payment?

[Hardy Davis]

Hi BP community. I’m working on a fix and flip deal. I am not very liquid at the moment. I have lots of saving in stocks. I also have the ability to take a $50k loan that would cover my closing costs. It would be 15 year loan at 4.5% that would get paid when I sell in about 3 years, amounting to $325/month. My question is would you guys rather sell stocks and take a long term cap gains at 15% tax rate, or take a loan and keep the stocks growing. Any opinion is appreciated. 

[Basit Siddiqi]

I would take out the 401K loan towards the downpayment.

If you sell stock, you have to pay taxes - You mentioned the 15% federal capital gains tax rate(if you are not in the top bracket, otherwise its 20%).
You may also be subject to the 3.8  Net Investment Income Tax. Furthermore, there is also a potential state income tax.

the 4.5% interest on the 401K loan is being paid to your 401K account.