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Updated over 6 years ago,
Can I COMBINE my cash with my SD-IRA to buy a flip?
My idea is to use $15,000 of my SD-IRA along with $17,000 cash to buy a flip for $32,000. ( The rest of my SD-IRA is currently loaned out to a vet flipper).
I would like to "charge myself" 1% interest annualized, and return $15,000 + $1,500 in interest back to my SD-IRA. The rehab is approximately $10,000 and the ARV is approximately $80,000.
I'm only $42,000 out of pocket, plus all the costs, the PM fees, the seller commission when it sells, etc. etc. I know the ROI of my cash is somewhere in the ballpark of $10,000 maybe $15,000, but, I think it will be a great exercise for my first deal.
Do any of you more seasoned REI vets have any thoughts you'd like to share with me? About either combining SD-IRA and cash? Or, about the deal? This particular property price is too small for a hard money loan. Time is of the essence to put my cash to work before it runs out!