Would you borrow short term from 401k to keep more liquidity?
Came across what appears to be a really great deal on 3 new SFUs from a single seller. These will be rentals #s 3-5 for me so I know what I'm getting into. Currently thinking I'm going to finance via 2 traditional mortgages and one though HELOC on my primary. I have the cash for the down payment and have the assets to cover the 6 months expenses but its going to spread me pretty thin. I know its generally discouraged to borrow from your 401k but I have a relatively stable job, we live on 50% of our household income and I could repay the loan within 10 months or less, it would just give me a little more breathing room. I'd be giving up about $300 in interest to make an additional $34k/year.
If its relevant, I'm 29, have about 1.5x my annual income in my 401k and want to build my real estate portfolio to supplement retirement since I plan to retire well before I'm able to draw on my 401k.
If I don't borrow from the 401k, I might just take 2 properties, which would decrease the annual income to $24k -- still not bad but much less exciting!