TSP Loans - Current Pros and Cons

[Joseph O'Sullivan]

Hi All,

As I look at my options to finance my first RE deal, I was researching the early withdrawal penalty from TSP (Federal equivalent to 401K) and just learned that I can take out a TSP loan with no penalty, no tax impact and just have to pay it off with interest (seems to be 4-5% range right now) within 60 months.

I understand that there will be impact to the compounding of the TSP funds that I pull out for the loan, but I am speculating if I can buy the right real estate deal, it may offset that impact and get me on the path to accumulating more real estate via BRRRR that will more than compensate in the long term.

This would be a general loan from my TSP to fund the down payment for the bigger loan to buy the property .

Has anybody had either good or bad experience with this?

Pros and Cons or this approach?

Thanks for any feedback

Sincerely,

Joe