Should I draw from my 401 for a down pmt on a retirement home?

My husband & I have very limited funds. Currently both of us are on social security disability and my husband is drawing a pension. We have a condo that we would like to rent out and should be able to do this with a small negative cash flow. We would sell the condo when the market improves, 2-3 yrs hopefully.

I am 61 and anxious to move to a smaller community and the only way to do this is to use my 401.

Please advise. Sincerely Barbara

Barbara, this could potentially be a huge mistake. Assuming you both are not going back to work, you are unable to make additional contributions to your 401k. The 401k is all you have left to last for retirement (and of course your social security benefits).
I would only suggest using 401k funds to purchase income producing assets such as rental properties. The cash flow and tax advantages will add to your retirement income without draining the 401k.
Of course to do this, you must roll-over your 401k to a self-directed IRA.
I teach people how to do this and how to invest for retirement if you need further assistance.

If you use 401k funds for your own residence, you are buying a liability not an asset. Please proceed with caution and get as much education on this subject as possible. Education does not cost, it pays!

Good luck.

Wait. If you have to use your retirement funds wait a while longer. Housing prices have a lot further to fall in the future. We haven't seen a bottom yet. You'll get a cheaper house at a lower interest rate.