Hi @Aisha Mackey Delpratt - Awesome job getting the househacking strategy underway! Have you looked into Down Payment Assistance programs in your county? If you Google that you may be able to qualify for loans via that route which should, in general, be much less complex than borrowing from your 401k.
@Aisha Mackey Delpratt it's not a terrible idea if it's only a few thousand and you could pay it back quickly. Just balance it with the risks. If you lose your job, the amount is payable within 60 days or it becomes taxable income. There typically won't be any penalties for borrowing. I've done it briefly in the past for good RE deals, generally just a $75 loan processing fee.
Thank you both for responding! All great information I'll take into consideration! Thank you!