The last thing you want to do is to buy a sub-optimal asset or location where your initial equity down payment evaporates and goes away. 

@Wynn Williams You could buy it subject to the existing mortgage, but I'm hearing about those due-on-sale clauses being exercised often now.I would structure it as a lease with an option to buy.

So, if I withdraw $60K, about 75.24% of that should come from contributions (since that’s how my balance is structured).75.24% of $60K = $45,014 → Comes from contributions (no tax or penalty)22.38% of $60K = $13,428 → Comes from earnings (subject to taxes & penalty)Taxes & Penalty on the Earnings Portion ($13.4K)Federal Income Tax (24%) → $3,219Early Withdrawal Penalty (10%) → $1,342Total Tax & Penalty: $4,562Net Cash After Taxes and Penalty Fee: $55,437The DilemmaIf I leave the money in my Roth 401(k), continue contributing $525/month, and earn 8% annually, my balance could grow to:$229,865 in 10 years$606,905 in 20 yearsBut if I buy the property, it could generate $15.6K/year in pure cash flow, plus appreciation.

There are also many new construction townhomes all over Houston, so if/when you go to re-sale, most people can buy new for just a bit more (if not the same) than buy your used townhome.

If I wait until accumulating enough cash in the account to buy another note, this will kill my yield.

House hacking is often promoted as the easiest way to get into real estate—buy a property, rent out part of it, and let tenants cover your mortgage.

I've also seen it where legal counsel has had each of the spouses form their own single member LLC and those LLCs purchase the new property as tenants in common.Food for thought - You'll almost always get a better interest rate and terms buying as yourselves. 

-"analysis paralysis" is mostly a made up nonsense phrase intended to get people to go ahead and buy real estate even if they aren't ready to do so. 

OK - but WHERE is the Buying or Selling Real Estate "page" or "section"?

I’ve lived here my whole life and worked hard to buy a house in my parents' neighborhood, which is the most sought-after area in the city.