Home Equity or 401K Loan to finance Multiplex?

1 Reply


I want to build a 5 or 7-plex, but I'm not sure how to proceed.  I have 2 sources to begin the project.  

  1. Use the equity in my home to finance the 25% for the construction loan (or I could outright sell the home)
  2. Take a loan from my 401Ks to finance the construction loan.

I'm a newbie and am just not sure which route to take.  What do the experienced RE investors think about my 2 options and are there any other options that I should consider?

Thanks so much in advance.

@Dave Fellow , do you have experience as a builder? If not, you'll have a very difficult time pulling this together. One option is to partner up with a great GC or developer.

Personally, I'd do a HELOC and try to make sure the deal will pencil out to where I could reclaim that capital within a year or two.

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