Hungry for my next deal.... Does this option make sense?

[Luke Carl]

I've purchased 2 rentals this year (one SFR one vacation). Looking for ways to get my 3rd.

I can find deals that will cash flow 600-800 per month.

I can take a loan out on my 401K at 4.5% and a HELOC at 4.5% and those two numbers combined would be enough to get me another 30 year conventional down payment in my market (about 25k).

Is this a decent strategy? Will the property be producing more than the performance of my 401k? (I would stop the contribution and be paying back the loan over a period of 2 years and my paycheck would actually go up, but in 2 years as things are now I'm probably putting 20k into my 401K that I would no longer be doing, so when the loan is paid off I'd just end up with the amount that is in there right now).

The cash flow will be more than enough to pay back the HELOC and the 401K loan in 2 years but is this a good use of my money?

Am I better off finding partners to go 50/50 and use zero dollars of my cash? or pursue both avenues simultaneously?

Thanks!