Thinking about cashing out $10k from my IRA for a downpayment

[Account Closed]

Thinking about cashing out my IRA for a down payment on my first home.

I want to buy a 3 bedroom in greater Boston. Live in one bedroom and rent out the other two.

Thoughts?

[Joe Splitrock]

@Account Closed normally I don't support IRA withdrawals for investment properties, but I would in your case. You are able to avoid penalties with first time home buyer exclusion and you are living in the property, plus renting space for income. This seems pretty solid to me. What I don't think is smart is when people cash out their retirement, pay penalties and taxes for a non-owner occupied property. There is just too many stories of people loosing their life savings in a bad investment. Again, fine in your case as you are just getting established and an owner occupied house hack is a great first step.

Good luck!