Utilize Your Equity in the Multi-Family PropertyCash Out Refinance: Since your multi-family property in CT has significant equity (around $200k), consider doing a cash-out refinance.

If you do it right e.g. always carry a reserve for repairs/vacancies, hire a GOOD property manager, keep the tenant happy by doing reasonable repairs, etc, then investing OOS is a great option to build wealth.Good luck and be sure to utilize the BP community if you need help down the road. 

Is there a way to utilize part of my Traditional IRA funds as a down payment on a SFH investment property without being penalized? 

transforming a room into master bedroom , utilize basement space to add sqft , fixtures , open space concept ( tare down drywalls to make open space - kitchen - living room - dining room

The document or whatever instrument allows this would ensure that the obligation to pay for the mortgage and expenses (Taxes/utilities/maintenance etc...) falls to the corporation and not myself and would be paid directly by the corporation so as to not look like income in the form of a transfer from corp to me to lender. 

They thought their business was a technology business with a financial component, not understanding that it was a financial enterprise utilizing a technology platform. 

Mainly because I "assumed" how long could utilities such as water ,trash and electric really get backed up without getting shut off.

So just utilizing the code will allow them to enter the property.

Please share your advise/opinion on a possibility to utilizing the space.I’m also thinking about upgrading the basement but not sure where to start.

Beyond removing the developable parcel from existing loan expect whomever finances the construction to want zoning, building permitting and utility connection approvals before the loan is originated (some will accept just zoning).