Aspiring STR Investor - Looking to Get Started ASAP

[Sean Burns]

Hi all, i'm a new member to the forums but i've read several BP books to begin my education process. My wife and I live on the north side of Charlotte, NC with our two little girls and we can't imagine a future where RE investing does not replace my full time W2 work in sales. We've created a buy box and are evaluating how to best finance our first purchase. 

I'm blessed to have received an inherited IRA from a deceased family member and i'm thinking taking a full withdrawal to finance the down payment and furnishings of our first property could be the bold move that gets us running. This would preserve our personal savings "safety net" and we would still retain a healthy 401k. The hard part to swallow is the 20-25% loss to taxes. I'm beginning to feel this is a necessary short-term loss i'm willing to incur to build a business that could produce much greater returns in the long run and allow us to start putting that money to work in the near term.

Thoughts? Should we pull the trigger? Looking forward to connecting!

[William Thompson]

Bold move, but be careful—cashing out an inherited IRA could mean a 20–25% haircut you'll never get back. I work with a lot of new investors, and the biggest wins usually come from structuring the financing smart and keeping taxes from eating your seed capital. There may be ways to start without giving up that much upfront.