401k 10% Penalty waived du to Covid. Should we take it out?

[Polo Vazquez]

I just finished talking with y broker and he has informed me that due to covid 19 the 10% penalty for taking your 401k before age 59 has been waived. My question to BP is... 

As investors, we are all looking to achieve financial freedom as early as possible. A 401k would not to begin taking money out until age 59, so wouldn't it be better to just take it out and invest it in rental properties so we can begin enjoying the rental income at any age we wish? It almost seems like a no brainer to me, but here is the catch. If you withdraw your 401k you would pay income taxes which is a HUGE amount. It could be upwards of 25% depending on your bracket.

What would you guys do? I know if I pull it out I can buy 1 property cash in my area or 3 to 4 with loans and achieve a 10% coc return with the rents, but I also like the security of knowing that the money is there for when I'm old even if my rental business falls apart for some reason (like the gov't deciding rents are canceled for a year).

Your opinions area apreciated and if anyone else is doing this I surely would like to know.