Pension Plan Withdraw vs SDIRA to purchase Multi-Family

[Noemi Contreras-Woods]

Hello!

I am fairly new to the forum but have been quietly following some of the post. My husband and I are in the process of buying our first investment property, a multi family short sale in Puerto Rico. The plan is to rent the first unit to a full-time tenant and the second unit as a vacation home given that the property is only blocks from the beach. We currently live in the states but have family members that can help take care of the property as well as access to a property manager. My question is, should we directly use the funds from the pension plan for the down payment? or should we open a Self Directed IRA and use that as a vehicle? I have been reading about SDIRA but still not clear as to how it works.

Thank you in advance for your help!

Noemi