By taking early distribution from your IRA you may end up paying up to 40-50% of the amount you take out in taxes and penalties. And then using what's left to payoff probably relatively low interest loan that you have on your rental and loosing interest write off deduction doesn't sound like a wise financial move...
Why don't you consider setting up a self-directed IRA, moving your Vanguard IRA in there and then invest passively in trust deeds (or some other alternative assets). You can get better return comparing with the stock market (10-15% is reasonable expectation) and with lower risk. But most importantly you will have allof your money work hard for you.
In addition to federal and state taxes, if you are under age 59 1/2 at time of the distribution a 10% early distribution penalty will apply. Please see the following for more.
Why are you looking to pay off a rental. Doing so will kill your cash flow based on the value of cash. Buying artificial cash flow is extremely expensive and counter productive to the intent of investing in income producing real-estate.
By taking early distribution from your IRA you may end up paying up to 40-50% of the amount you take out in taxes and penalties. And then using what's left to payoff probably relatively low interest loan that you have on your rental and loosing interest write off deduction doesn't sound like a wise financial move...
Why don't you consider setting up a self-directed IRA, moving your Vanguard IRA in there and then invest passively in trust deeds (or some other alternative assets). You can get better return comparing with the stock market (10-15% is reasonable expectation) and with lower risk. But most importantly you will have allof your money work hard for you.