Cash out 401k to use for a down payment

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I’m looking at different ways to come up with a down payment for a duplex. Wondering if cashing out my small 401k balance is a smart idea. Balance of $15,000. Live in MN.

The reason I am considering this is over the past 15 months I have purchased 6 properties totaling 14 units. I have used up my down payment option of using my HELOC.

Any other creative ideas to try? I’ve asked the seller about owner financing but he wants $50,000 down so I’m not going to do that.

I'm going to ask him if he would be willing to finance my down payment for me and that way he will get his $50,000+ still....... but I feel this will hinder me with what I want to offer him for the property.

Thanks for any advice.


In all likelihood, you're going to take a pretty savage beating in the way of income tax if you do this.  I guess you need to decide if the penalties, fees, and taxes are worth it.