Updated about 5 years ago on . Most recent reply
Cash in Indexed Annuity IRA for first Investment Property?
Yay! My first post!
I'm wanting to buy my first rental property in the next six months. I can go and get a mortgage on a rent home, or I can cash out my IRA from a previous job. I am now a public school teacher in Texas. The IRA is worth over $100,000. Is it a smart idea to cash that out so I can pay cash for my first investment home? Or should I leave that alone and go with financing? The homes that we are looking at are in the East Texas area, and all are under 100K. The wife and I are looking at this as both a long term investment, and a beginning to secure more rent houses/flips to achieve pure financial freedom. Thanks in advance!
Most Popular Reply
Dustin,
You could consider rolling the IRA into a Self-Directed IRA and having the IRA own the property. This way you won't be paying the penalty or taxes for the distribution of the IRA, can use those funds to buy the property, and rental income can come back to the IRA tax free.