If I recall correctly the payment was close to $1k a month...so may sure there’s enough margin in the deal to make the payment plus extra principal to get it paid off2) you cannot contribute to your 401k while paying the loan back so it hilts additional contributions 3) the payments are taken directly paycheck each paycheck cycle (weekly/bi-weekly)

A lot better to leverage the money sitting in your HELOC and essentially purchase the property with no money out of pocket.  

For those who don’t have 50k sitting around, 401k loans are a great opportunity to help you get that great deal. 

And here I sit with a property that's a week old and now covered in bright yellow signs. 

If you sit on the cash out money too long and you start to erode the principle by using it all to pay for the mortgage on the subject property, you will loose the money's ability to do its thing.Good Luck

Here are some key details:Purchase Price: $172,000Rehab Costs: $100,000Financing and Holding Costs through Term: $48,000 (all in cost of roughly $320,000)Balloon Payment: $272,000ARV: $300,000 - $350,000; the variance is explained by some investors using below-grade finishes and also using "fire sale" tactics.The DOM in the market varies, with some properties selling in 60-90 days and others sitting for up to 180 days.

Be happy to sit down for coffee and chat more!!

I ask because sitting on $500k+ of equity with no return (other than appreciation, which is speculative) probably isn't the best long-term financial decision.

If he wants to sit on a pee-stained toilet, not dust off his shoes for 15 years, or prepare food on a counter that's filthier than an public restroom in Tijuana, he's free to make that decision.

If you are sitting on a concrete slab and have a 3-story side-by-side duplex, then ductwork will likely be cost prohibitive.