Learning that I prefer money invested in real estate over money sitting in the bank... don't we all?!

I would try not to tie up any of the principal in down payments.Personally, I had a family member do this same thing, but they used an investment portfolio as the collateral instead of real estate.If you play your cards right, this might be the only short-term money you ever need.Please let us know what you end up doing.

Quote from @Katie Accashian: I am looking to take money from my retirement that I accumulated from my previous employer and move it into a self directed IRA to buy a real estate investment.

For the second property, I would expect to have to put money into it in some fashion.

second was Hard money it was legal then. 

Over the years the only place I have lost money is the stock market.

Quote from @Marc Zak: In the market where I live (San Diego), appreciation has been strong and many predict it will continue to appreciate in the long term.However, with current interest rates (6% at best) and property tax (2%), the annual cost burden is 8%.Am I correct in saying that appreciation has to be above 8% annually (plus whatever my maintenance and vacancy costs are) for me to make any money in this scenario if the property is cash flow neutral?

Purchase price: $240,000 Cash invested: $60,000 I purchased this duplex in distressed condition using owner financing for $240K and secured a $60K hard money loan for renovations.

The program stipulates that you MUST stay in the home 5 years or you lose a pro rated portion of that 8k.

In the latter I would much rather have my money and be in control.