Suggested to do that earlier than later, so there is no liability on a tenant who is not on the lease paper.

But that also means you’re generating almost zero appreciation and barely better than bank CD returns.

Often times you will pay much more in taxes than if you pulled the money out, paid the taxes and penalty and then started investing in real estate.For example, with the financing you mentioned, the IRA must pay taxes on the portion of the profit earned by financing. 

I recently opened a HELOC and I recall it's at prime for the first year (7.5% currently), and I only paid minimal closing costs.PML or HML I would expect rates >10%, plus points, possible prepayment penalties etc.

For example, my average terms are 90%-100% LTV and 10% interest flat no points or pre-payment penalty.

Check with your CPA if cost seg makes sense before proceedingRISK - If the IRS disallows your cost seg, the risk will be the taxes previously due and any penalties. 

Someone trying to earn 4-5% return they could get from a bank cd?

If the tenant complains there is no heat, you should respond.

No, no, no.

Well no kidding!