401k withdraw?

[Tom Jimenez]

Hello bp subscribers. My wife and I are brand new to the real estate investing world, and are looking @ all of our options for financing out first property, and one of them is possibly taking from my employee based 401k. We have discussed doing the 5 year loan payback with 7% interest, or if we just take it out with no intensions to payback and take the 10% penalty hit from the IRS. The question is when we declare it as income next tax season what kind of hit will we take from that as well? It will be anywhere from $12,000 to $25,000 that we withdraw. Any advice is appreciated.