[mccannable]

I am almost ready to accept the counter offer on a short sale for an income property. To avoid huge closing cost on a small borrowed amount I am leveraging my cash and touching my 401k for a loan to buy the property. My plan is to then turn around and get an equity loan instead of a traditional mortgage.

I talked to penfed who our cars are financed through and seemed like it was no big deal. I can take out %70 of value of home. There are no closing cost and seems pretty straight forward compared to a mortgage.

any downsides? Besides slightly higher interest rates?