Solo 401k, IRA, or other to start using for rentals?

[Jeremy Karja]

I currently have an IRA I converted from a 401k I would like to use for investing. My plan is to use it for the BRRRR strategy with the money and start rolling into other properties after I refinance the first one or two I buy with my qualified money. The question is should I use a loan from a 401k or should I use my IRA for the down payment and all other costs?

[Brian Eastman]

@Jeremy Karja

If you will be planning to use IRA funds, then you may not also use a loan from a 401k. The IRA must be invested at arm's length, and may not be combined with personal funds. So, you could use the IRA as a down payment on a rental property where the IRA would be the owner and receive the income (and pay the mortgage).

A loan from a 401k is just you borrowing personally from that 401k plan, and would therefore be non-qualified funds in your name. This cannot be mixed with the IRA transaction.