What would you do? Wait? Or use your IRA now?

[Dale Carlson]

I have one property with a partner that we paid cash with.  It is a modest $300/mo for each of us.

NOW - i have an IRA that i would love to use on a couple of duplexes to really get my feet wet individually. but i am curious if you would do this for this type of deal.

2 duplexes sold as a package.

Total for both - 100,000

Total rents - 2400/mo

Total water bills - 200/mo

Management if i dont want to - 240/mo

NOI - 1960

My mortgage, taxes, insurance - 680

Cash flow - about 1280.

Down payment with closing would be $33,000.  

Now in order to fund the down payment, i would need to take the funds out of my IRA and pay the taxes on that and penalties of 10%.

All the numbers on the deal look great, but i am not sure how to look at the cashing in the IRA part. This property looks like it would make way more than the money being in my IRA.

I would then have decent cash flow for a year or two until i can save up another down payment.

What do you think?