Buying a Investment Property using an IRA

[Nathaniel Sconiers]

Have any BP members used their IRA/401K to buy an investment property as cash and successfully completed a cash-out Refi/

Thanks

[Jon Holdman]

Your IRA would be the entity that does a cash out refi, not you. It is possible for an IRA to get loans, but the LTV is going to be around 65%. It must be a true non-recourse loan and only in your IRA's name. If you have to give your social security number, it probably not just in your IRA's name. Owning a property inside an IRA that has financing will cause the IRA to incur UDFI (unrelated debt financed income) and your IRA will have to pay tax on it. There are LOTS of rules about owning a property inside an IRA.