401K Withdrawal or Financing?

[Michele Masters]

Looking to buy my 2nd AirBnB property for <$400K (singe family). I am considering financing the $112K due at closing with a HELOC and a 401k loan and get a $300K investor loan. This comes to a monthly outlay of $3,721 with a total loan costs of $284k.

I am 60 yrs old (no penalty withdrawal) and have no intention of ever retiring.  So given that, I am looking at my retirement funds (>$2M) as a possible source for funding.  At a 17% tax rate, my cost for the $482k withdrawal (includes tax payment) comes to $82k in taxes.  

Since $82k in taxes is less than $284k in loan costs, I think this is a viable option.  What am I not considering?

[Taylor L.]

I see you're up in NOVA  - Hi! Is this property you're considering located in Richmond? If so, just be aware that the city is trying their hardest to essentially destroy the AirBnb business in our fair RVA.

What is the price of this property? $400k? Why would you need to withdraw $400k from your 401(k)?