Should I pull out my retirement accounts to buy more real estate?

[Ethan Cole]

I’m tempted to pull from my retirement accounts to buy more real estate. Thoughts?

[Basit Siddiqi]

I would take the money out of a retirement account if it makes sense.

Yes - distribution from a retirement account will be subject to federal taxes, state taxes and penalties.
However, it would be subject to federal/state taxes anyway when you take it out in the future.

Therefore, the net difference is 'penalties'.

If you can acquire a deal for less than 10% of FMV, you already stabilized your net worth.
There is also a value in getting into real estate sooner(to learn).

You may want to first see if you can do a loan against your retirement account first.

Best of luck.