Should I use my IRA or Heloc for my first deal?

[Jeremy Karja]

I have about an equal amount of cash I can get from the equity in my home and my IRA. I live in Minnesota. Which should I start with and why? My goal is duplex, triplex, fourplex to generate good cashflow as I rinse and repeat the process.

Love to do the follow the BRRRR strategy. I know I cannot use the Ira money and mix my own money but if I can start with the IRA money then re-finance out my ira money after I fixed up the property I would be very happy.

Love to hear your thoughts and questions.

Thank you.

[Mike B.]

@Jeremy Karja - depends on if there's any penalties from taking a loan out on your IRA (if I'm reading your post correctly). If you have a HELOC already with access to decent cash, would use the HELOC.. low interest rate and can pay it back and use it again hassle free. Now I will say I did recently use a personal loan from my 403B, however the terms were great (4.5% interest paid back to me, total payback due in 6 years). Unsure what others have run into (term wise with their retirement account) but I combined that with my HELOC to purchase a home cash, rehab and rent it out. Waiting the 6 months now (almost there) to cash out refi and pay everything back.