I found a great foreclosure investment opportunity that is 25%-30% below market. The only significant savings I have, however, is my 401K from my old company. Does anyone know if I can cash out my 401K to buy this investment property?

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From my understanding you can run it too ways. You can borrow 50% of your 401k as long as you repay it in installments I think over 5 years. On the other hand instead of using your 401k to invest in the stock market you can invest in real estate. But all the money you get from rent needs to be put back in your 401k or you pay early withdrawal penalities.

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Ki Gray - Austin Realtor

Working in Austin his site covers the Austin Real Estate market. If you are considering investing in Austin be sure to check out his Austin Real Estate Blog or look through some of the Austin Homes currently for sale.

Why would you use your 401k??? I am sure like most forclosures...it needs a lot of work. Do a search on Hard Money loans (these type of companys look at the property and not so much the credit) and use your 401k as a last resort. Is there any equity in your current home?