Using 401k for Outright Rental House Purchase
I am planning on removing 401(k) funds to utilize for rental property purchase. My question is, which would be better:
a. purchase outright and renovate 3 B class rental properties with the funds, or
b. use the funds for down payments on multiple properties with the accompanying mortgages from a portfolio lender.
As additional information, I am 66 years old and have purchased 3 buy and holds in the past 18 months using conventional mortgages.
One last note - I have discussed with my accountant the pros and cons of converting the 401(k) monies to self-directed IRAs. Largely because of the lineal restrictions, I am opting NOT to go the self-directed route. My son is an active real estate agent and house flipper and some of my advantages would not be available to me.