401k withdrawal insight needed

[Mike Garrity]

Hey there, we are in the market for a new home and we are thinking about renting out our existing house instead of selling. If we were to do that we would need to cash in my wife’s 401(k) for a down payment on the new house. We think that it would be worth it even with the penalties and taxes as we could clear 900-1K a month in renting out the home we live in now. Is there any scenario and/or implications that we may not be recognizing and could be to our detriment? Any insight would be greatly appreciated!