Using 401k for Down Payment

[Lorenzo Prieto]

Hello, 

I'm looking use my 401k to fund 3-5 percent down on my first house hack. I think realistically it would take me about a year or two to save enough money for a down payment and I'm eager to get in the real estate this year. My biggest question is if this is a smart thing to do. I am not close to retirement age now and would like to think that by starting as soon as I can in real estate I will be better set up for retirement later down the line through real estate investing. I've done some research and understand the penalties associated with withdrawing from a 401k. Is there anything that I should watch out for or think about deeper before making a final decision? 

Thank you!