To BRRRR Or Not To? That is the question

[JayCinta Henry]

Have this house under contract for 2 months already but one of the owners passed. Probate will take about 3 months. Was buying as a primary house, to hack for one year than move out and rent it. I am trying to decide whether to look for another primary house purchase, then brrrr this one. I can have access to $40k from a 401k. The ultimate goal is to brrr and refund the 401k. A lender is in process of approving $40-48K heloc (will ready in 2 weeks), as well as primary house purchase with 5% down.

The house is $167k purchase , appraised for $192k. Cash to close is $22k (5% down, primary home), ARV $205-210k. It needs some work in the kitchen = painting, etc, which I plan to do myself, I expect this to be about $4k. Rents are currently running about $1550

Considering probate time, yada yada... am thinking of brrrr'ing this property using 401k funds, and for now to look for a ready to occupy primary home.

If I brrrr this house using funds from 401k will there be enough equity to fully extract the 40k and repay the loan? Am I missing something?