My original questions are

I want to buy a 2nd home, but I have to classify it as investment property due to my recent refinance of my primary home.

Since my recent refinance have a very good rate and the HELOC rate is also very nice (Prime - 0.75%), so I don't want to use the option that to refinace my exisiting primary home as investment property home loan.

The two issues I want to be super clear,

1) In order to have 30% downpay and 2 months PITI reserves on both mortgages, I need to take 401K loan

    Question 1:  Does the 401K loan disqualify me for a new loan

2) If qualified and have bought the new home as investment property, and I can be sure that I don't want to rent it out

   Question 2:  Since this is investment property loan, can I still deduct the tax and interests like my primary mortgage does?