problem?

[Jeff Ray]

Hello,

I have over $200k in an IRA. Due to the recent recession, I short-sales two properties two years ago.

I kept one rental property which has a few hundred k in equity.

I have an opportunity to buy a home which I currently rent with some very friendly terms.

Problem is liquidity. I could scratch up about $150k, but need another $150k for down payment to purchase the home.

Anybody have any creative ideas? 

Basically, in a perfect world I would like the IRA to buy out my equity in my rental property, use IRA contributions to manage the rental expenses and then someday use the property as a retirement home.

Any help is appreciated

[Dmitriy Fomichenko]

@Jeff Ray 

your IRA could purchase real estate, however, it can only be investment property, you personally now allowed to receive any benefits from the investment. Also, if you don't have enough funds in your IRA to purchase the property - you must use non-recourse financing.

If I understand you correctly, you are currently residing in this property which makes this transaction prohibited. You are not allowed to use IRA to buy out equity from your rental either. When it comes to using IRA funds for investing, the transaction must be 'arms length'.