Clear 401K for acquisitions?

[Steve Jeffries]

I have a question I am sure will get mixed answers. We have had a single rental for about 11 years now, and have recently decided to give the rental business a serious effort. We bought our second rental in May and rented it in June. My wife and I still have full time jobs, but are working towards being financially free. After watching the roller coaster ride of my work 401K, I decided to halt putting any more money in, and concentrate on putting that money towards debt reduction and new properties. I currently have roughly $40k in the account which would yield me around $26-$28k after penalties. I could potentially leverage 4-5 properties with this money that would bring in $2500-$3500 in gross income per month. Would it be wise to move forward with this?