IRA to Fund My Down Payment

[Michael Lamb]

I've always done the responsible thing, of putting money into my 401(k).  After a few job moves, I have two IRAs and a 401(k).  I've never really been saving for anything, other than retirement.  With that being said, I have a young family (so limited cash).  After finding BiggerPockets, I want to get into Real Estate Investing.  I don't have money in a savings account to put towards a down payment.  Because I am new, I don't feel comfortable asking for private money, until I show that I can do this.  I am thinking my best option is to cash out my two IRAs.  I know that I will have to pay tax and the early withdrawal penalty.  I figure, this money was for my retirement anyway.  Am I crazy for taking such a financial hit, or am I justified in taking action for my dream?

P.S. I really need a CPA to give me some advice on how to mitigate my tax burden, so if you know someone, please let me know.