Cashing Out Teacher Retirement -- Jump or Stay Safe?
I'm a new brand new Real Estate Investor. I did my very first deal this past month. Bought a SFR (4-2) with a tenant already installed and approximately $450 free cash flow before repairs and Capex. I'm banking all of that cash flow toward the next down payment along with everything I can save from my "real" job.
So, looking for advice on whether to cash out my Texas Teacher Retirement (about 100k before taxes & penalty) to put toward the down on two or three more rental properties. I no longer work in the school system, so I am no longer contributing to the pension.
Here are the facts: If I leave it, I can retire at age 62 and draw approximately 40k per year until I pass away. If I withdraw it, I have to pay income taxes plus the 10% penalty to the IRS for early withdrawal.
I figure I can turn that into 2 or 3 down payments on SFR's that will cash flow about $400 to $500 per month each or perhaps look into a duplex or quadplex...I haven't run numbers on what those cash flow.
Any advice or angles I'm not seeing with this. Thanks in advance for your perspective.