One of the benefits here is that you can save a bit on closing costs but the PPP (pre-payment penalty) structure may be more aggressive, ultimately inhibiting your ability to sell off if needed - since the loan would need to sustain a minimum debt service.

@Tanya Maslach,When you take a distribution from an IRA, you are subject to ordinary income tax, plus penalties, if you do it before reaching retirement age. 

How do you feel about a $700k purchase price with a non owner occupied 4plex DSCR loan 3yr prepayment penalty, 10yr interest only 30yr fixed after$560k loan amount (20% down)7.750 par rate with no costs. monthly payment $3,616.66Or pay $22,295 in closing costs and get a 6.375% Monthly payment of $2,975The monthly payment difference between the two is $641.66And when you take $22,295 in closing costs and divide it by $641.66 that will give you 34.5 months (2.89 yrs) to break even if my math is correctHow do you guys feel about taking a lil less than 3 years to break even on $22,295And the seller is giving me $15,500 in seller concessions thanks for the advice guys!!

if she withdraws the money she'll get crushed by penalties and taxes and won't be left with enough to do anything, let alone buy real estate.food for thought.

Penalties for failure to timely comply are $500 fine PER DAY and potentially jail time.   

Here are a few considerations with respect to the 401k: 1) Although you can take funds with no penalty for first time home buyer, you can't return the money to the 401k. 401(k)'s have unique tax advantages that allow for tax-deferred, or in the case of Roth, Tax-Free growth.

Hi Kristi,If you plan to hold the property for the next 5 years, opting for a 5 year prepayment penalty makes sense, as it will significantly lower the rate.

You can also invoke the happy clause and tell them if they are not happy there, they can give notice and move out without any penalty, but that offer is only good for X days (eg 5 days).

I'd politely tell her that if she isn't happy there (which seems to be the case) you will give her the one time option of breaking her lease without penalty if she moves out within 30 days (eg Nov 15) and that she has until Oct 15 to decide if she will be staying or not.I agree with Kevin about phoning and then follow up with a brief summary of what you talked about via text.A lot of people here own a few places (not dozens) and most of us also have full time day jobs, so balance the two. 

I did find verbiage but from another jurisdiction "Unavailable for rent means a unit whose owner has filed with the code official a statement signed under penalty of perjury that such unit is not offered or available for rent as a rental unit and that prior to offering or making the unit available as a rental unit, the owner will apply for a Residential Rental Business License and comply with any applicable administrative regulations adopted pursuant to this chapter...."