Using 401(K) Loan to finance first property

[Louis Mannikko]

Hello,

Just curious what you all thought about the idea of using a loan from your 401(k) to finance the purchase and rehab of a 1st property.

My plan would be to use 40-50k to purchase a small rental apartment, fix it up, and then refinance the property to pay back the 401(k) loan.

Any downsides to this?  Thanks.