help deciding on 401k withdrawal for real estate

[Jason Renda]

hi all,

I have been pouring over this site and the great info regarding this subject that is already on here.  To be blunt I have generally been a financial misfit until the last couple years and now at age 42 I need to consider the long-term goals I hadn't when I was younger and should have. I am looking for help regarding options with my 401 and investment properties.

Using some simple numbers I currently have $50k in my total 401k plans, of which $30k is from a prior employer and that I cannot take a loan on unless I am able to roll it into my current employer's fund (or another fund).  It is a very moderate type of account and does not have a ton of annual growth (or decline).  My current employer matches up to 5% so I am funneling 10% of my salary to this account (a much more aggressive account) and will continue to do so as long as I can. 

I was able to scrounge and purchase a property for $150k (with a loan, not cash) that generates a modest profit annually (greater than 10%).  It is in a great area that is expected to continue to appreciate above the 3% rate, though nothing is guaranteed of course. 

I am looking into whether I should pull my prior employer funds of $30k to invest in another property.  I've read about rolling it into my current 401, taking the hit on a full withdrawal, rolling it to SDIRA and SD 401ks, etc. 

I guess what I am most concerned with is what makes a "better" strategy and the possibility of totally mismanaging what little assets I have now.  I prefer tangible assets.  i despise the idea of letting others' control my money but that was what I was told/taught to do.  I understand the risks of being a landlord and have the aid of friends who are successful landlords of numerous buildings to help advise me of good areas, etc.  My minimum annual return expected is 10% and my assumed appreciation of the property is 2%.  

On one hand I hate to deplete 60% of my 401.  On the other, the $30k is not so much that it can't be made up for in smart real estate choices and it alone isn't going to let me retire.

Hope this makes some sense.  I truly appreciate any feedback you are willing to offer. 

- jason