But timing and planning are crucial.Here's what you need to consider:Future Passive Income: Do you expect to generate passive income from other sources?

My plan is to start house hacking.

@Matthew Posteraro That's a solid plan.

Upgrading isn't worth it if you are planning to rent it out(generally) unless you were planning on doing a refi or sell it.

Yes we definitely encourage everyone to STICK TO THE PLAN when renovating!

Quote from @Daniel Tanasa: Another option is to get a small cash out refinance from the house you plan on fixing up, if is in financeable condition, and use that to fix it up, while still cash flowing.

You need a management plan in a market to make it viable.

Many people choose NOT to have this, because the administrator will then vet every investment you make to ensure you do not invalidate your IRA.Invalidating your IRA means that you've done a prohibited transaction and the entire account is then deemed as distributed to you.If you don't want checkbook control, then I recommend a plan administrator such as Equity Trust - www.trustetc.comIf you are sure that you're aware of all the rules around prohibited transactions and disqualified people (who you can and can't do business with), then a plan administrator like Sense Financial would be a good place to start talking.  

Most will not do 100% loan-to-value so plan on something less than that for the loan amount.2.

@Chris HainsI use the House Flipping Spreadsheet (https://www.houseflippingspreadsheet.com/) to do the planning, analysis and estimating prior to purchase.