Invest in 401K then withdraw to earn while saving --- a plan

[Garrett F Anderson]

Hello!  

So I am recently starting a career as an analyst and I need to start making decisions as far as my 401K is concerned.  I have this idea that I'm not sure is good/ bad or allowed with 401K's.  I will explain my two options below.  Keep in mind I would like to use this money to invest in real estate within 3-5 years, this would be a post-tax 401K (for option 1), and I want to avoid withdraw penalties.

Option 1:

My company matches 6% of my contributions to my 401K.  I would match the 6%.  At this same time I would be living frugally and saving money, let's say $5000 a year.  I could deposit this $5000 into my 401K and earn a return until I'm ready to take it out.  Then, after 3-5 years I withdraw my money + earnings and invest it into multi-family units.  

Option 2:

I would still match the 6% but now I would just keep the $5000/ year in a savings account.  I would also choose a pre-tax 401K so I will be taxed less every year.  This way I have the money when I'm ready and there are no added fees.

My questions are: Is option 1 possible?  Can I deposit and withdraw in my 401K at will without withdrawal fees?

Also, would it be smarter to do the post-tax 401K while I'm not making a large income or do a pre-tax 401K and have a smaller income to be taxed?

If this doesn't make sense or there is a better idea, please feel free to let me know.

Thanks for reading!