401k loan as down-payment

[Jatinkumar Patel]

Investment Info:

Townhouse other investment in Melbourne.

Purchase price: $129,900
Cash invested: $26,000

Utilized 401k as down payment on this rental.

What made you interested in investing in this type of deal?

Property undermarket and had enough savings in 401k to put as down payment

How did you find this deal and how did you negotiate it?

Same realtor team willing to work an awesome deal for us.

How did you finance this deal?

401k loan as down-payment for conventional loan.

What was the outcome?

Never thought I can use a 401k loan to get a down-payment for a real estate property. It worked , got a great property and making passive income .

Lessons learned? Challenges?

Do your due diligence and take care of your team. You can use your 401k loan as a down-payment and pay it back to repeat the process. Also utilized for third property.