<prompt> Human: First off, I should be ashamed of myself. I am about to ask a question that I already know the answer to but I do want to know what others think about this.I am 26 years old with a 401k balance of approx. 13k and I am investing mostly in Roth 401k. I work full-time and I am getting to a point in my life where I need to generate additional income. Since Ill be leaving my company soon, therefore I cant really borrow against my 401k because my company will require me to pay back within 60 days, and if not, Ill be taxed at ordinary income with 10 penalty.My question is, I havent done any discounted cash flow to this scenario, which I should, is it a good idea to liquidate the 401k, pay the taxes about 30 and use the cash as down payment towards a possible rental home? I am looking at homes bw the prices of 80 - 120k in Houston, near University of Houston. I figured if I can get a 3 bed 2 bath home, I can stay in 1 of the rooms as a tenant and rent the other two rooms out and collect income. Since the home will be near a college campus, I dont see having a problem renting it out, as long as the price is right. Once I have accumulated enough income, credit back my 401kIRA I know Im heavily penalized on it, live for pretty much FREE, keep accumulating income work rental, and eventually buy another home, and repeat. Too good to be true?Is it worth looking into it? I figured its a huge sacrifice to a greater potential maybe? Since the Houston market is BOOMING!Any thoughts and comments will be appreciated.Assistant: Too good to be true? Yes Is it worth looking into it?NoHuman: Why? Why not? Assistant: I havent done any discounted cash flow to this scenario, which I shouldYou have no idea what the cash flow would be and youll be taking an immediate 40 hit to your 401k balance. Human: Yeah, but the outcome of this is good; I can easily fund my 401kIRA back in the next 5 years with 2-3 times more than what I took out. I have a general idea on what the incoming cash flow would look like, but not any specific details. This is why Im asking you guys if its worth digging deeper. Assistant: This is the kind of thing people said in 2005, 2006, and 2007. I wouldnt be comfortable with that risk. Human: Yeah but I have a decent background in finances. Im not like everyone else who ended up getting a mortgage without any income, or low income, etc etc. This is why I am trying to diversify. My other option is to go rent an apartment again and pay 1000 a month rent down the drain.  <response>: It sounds like your mind is made up. I look forward to your follow-up post in 6 months. 