I am currently looking at buying my first property. I am considering using my 401k to finance the down payment. Right now I have a lender that will allow me to put a 15% DP on a owner occupied proprty or 25% DP on an investment property.

401k loan = $25k

I have an additional $10k to invest/emergency/closing costs

Property is listed at $230k

Built in 1981

Duplex

Rents are $1150 & $1050

Returns are over 7% for cash on cash with tenets in both sides

I only have enough cash for a 15% DP so I would have to occupy it for atleast a year, so only one side would rent.

Would you guys proceed with this deal? Why or why not?