There is a reason why I buy properties that cost a multiple of what typical cheap rental properties are going for.

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.

We are looking to buy our first property in the Baltimore, MD area.

For simple math let's say it's $100k buy.

You can offer to buy these properties and assume the existing loan.  

Buy a nice 4+ bedroom home.

As a CFA you probably know the old quote from Warren Buffett who said something like "buy what you know and understand". 

Investment Info:Single-family residence buy & hold investment.

Investment Info:Townhouse buy & hold investment.

My buy box is turnkey sfh 3/1 or small multi newer major utilities and roof.