David Ramsey talks about stocks, mutual funds, etc.. whereas I made my money by being an active investor in real estate.

While engaging with the Bigger Pockets community, I've noticed many investors seeking funding.

I am getting a 5% interest rate, 30 year amortization with no balloon, no prepayment penalty.I am deciding the best way to fund the rehab. 

They do conduct a background check, credit check, will check cash reserves, and will make sure the borrower is using their funds for business purpose only, but there is less emphasis on the borrower and more on the deal itself. 

In this case the current financials on the property aren't great(rents well below market value and the owners family living in several of the suites) so the lenders will likely not provide the funding based on poor NOI.  

I'm of the opinion that index funds are a better investment unless you are really hands on.

If your goal is to replace an active income, have you looked into debt funds? 

I ran some quick numbers and would estimate (assuming you have good credit) you could borrow around $415k-$420k, which includes funding 100% of the rehab costs.Have you calculated your expected profit based on selling after rehab and if you decide to keep long term? 

More work with more risk but can get you going if limited funds until growing into bigger deals.I am still on this site but stay very busy so not on here as much. 

IRA funds can be used to make investments only; they can't be used to buy a residence.