BRRRR method using IRA partnered with personal funds

[Arun Chandra]

Hello,

I have been working on a investment plan and would like some guidance. I want to purchase a property with cash from a IRA and put the IRA and myself as percentage owner on title. I spoke with the self directed IRA custodian and they said this is acceptable.

Example: Buy a $110ARV for $80K cash with IRA funds. Use $10K personal funds (Line of credit) to rehab. Rent the property out for one year.

The part I would like more help understanding is the "refinance" portion. Would a lender refinance the property to me, so I can get the cash back to the IRA? Or would they do a completely new loan? Or is this not normal practice?

The property would be in Dallas, TX.

Any help is appreciated.

Thanks in advance!

-Arun Chandra

[Arun Chandra]

Wow. I am very glad I decided to post on this before moving forward. 

I guess I will look for properties that can be purchased solely by the IRA and avoid the partnership route.

Thanks again everyone for your responses.

-Arun Chandra