Using 401K to purchase first property

[Johnell Jones]

I plan on using a portion of my 401k (50,000) as a down payment on my first property. I can't take a loan or hardship because this is from a previous employer. And my current job doesn't accept rollovers. I know I will take a penalty and pay back taxes. Is there a way to bypass this or not let the hit be lessened? I looked in IRA but there is a timeframe before taking (5 years) and I want to start in a couple of months on the first property. I have looked at a self-directed IRA but I want to receive all my profits from my property. What do you guys think? I'm almost to the point of just taking it out and dealing with it.