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Updated over 2 years ago on . Most recent reply
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CARES Package allows IRA withdrawals w/o 10% penalty, worth it?
With the passage of the CARES package allowing IRA withdrawals without the 10% penalty and being able to report the distribution evenly over 3 years, I have been considering taking $20k out of my IRA to pay off a loan that is keeping my DTI above 45% and preventing me from qualifying for an FHA loan with a loan amount enough to purchase in Socal. I have excellent credit, no debt besides student loans with a manageable payment and have been in my industry for over 10 years. However, every article I read says it's not advisable to take from an IRA. However, I would like to hear what BP has to say. Would taking from my IRA at this time be advisable to start my REI career? Thanks in advance!
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You also would be withdrawing from your IRA when the stock market is extremely low. At this point it is likely the returns of in then stock market could be higher than your real estate investment over the next 3yr and it is 100% passive.
If you really want to use your IRA to invest in real estate I would let the market rebound and then invest via a self IRA as @Carl Fischer Said above.
personally, I like the diversification of having my IRA in the stock market and my real estate investments separate.