Should I use a 401K Loan to fund a deal?

[Bryan DeSellem]

My wife and I found what seems like a killer deal near where we grew up, we now live 8 hours away. The house is a duplex that is currently rented for $1200/month per side and the asking price is $120k. The only thing the house needs is new appliances because they are the owners and they do not come with the house (strange I know). Naturally there is a lot of interest in this property due to the fact that they just dropped to this price last week from $160k, so there is a good chance I will pay more for the house. My question is: should I consider using a 401k loan of up to $30k to fund this? I’ve never took a 401k loan but I understand how it works. It will have a 6% interest rate and a 5 year term. At the same time I am rehabbing another duplex that will eat up most of my other funds, so purchasing this other property will have me stretched pretty thin. Is the deal worth pursuing and using a 401k loan, thoughts?