Can I use my Traditional IRA to buy Investment Properties?

[Kevin Kim]

Hello Everyone,

After doing some research, I've learned that an individual is allowed to take out a maximum of $10,000 from your Self Directed IRA to purchase your first home without any penalties. Of course this would mean that I would have to pay taxes on the funds withdrawn.

However, would this apply for a property that wouldn't be my primary residence? I am thinking about using a portion of my Traditional IRA for a down payment on an investment property outside my state. Is this possible?