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Updated almost 8 years ago,
Using a self directed 401k.
I have learned about this solo 401k in which you can use some of your 401k to invest in real estate as long as you pay it back with interest within 5 years. My question is once you pay back the amount you borrow, do you have to continue to feed the 401 k or can you then start using the rent from the investment for other purposes? I have a small 401 k that I would like to use as a down payment but I don't want the property to always be tied to the retirement account. I would like to have a few eventually tied to the account but right now I need to free up funds as much as possible. Any help would be appreciated.