401k or HELOC?

[Alan Chambers]

To fund my first investment purchase (a triplex to rent and hold) do people recommend using my 401k or using equity in my primary residence?

Thanks all.

[Thomas Williamson]

One thing to think about if you do the HELOC first, that will show up on your credit as debt. If you want to continue investing, that loan will count against your debt to income. Most banks wont catch the 401k loan, and most don't care if they do catch it. They'll still count the entire balance of the 401k as an asset.