It is at the end of the day a very personal decision but I would recommend it since it'll help raise your income and help fund your dream of becoming full time in real estate sooner.

Those wanting to buy a home should not invest any money in stocks or bonds, but should prefer cash.

Have an agreement about how to split the escrowed funds if someone redeems before anticipated.

My brother and I cashed out of our 5-plex in Ballard last NOV and moved our funds to a property in Boise, ID. 

I've secured funding for single family investments, but have yet to pull the trigger.

Either into another property or in the index fund like you’re talking about.    

I am currently self funded and struggling haha.

But if you don't have enough to cover expenses, can you fund the expenses from non-IRA accounts?

With this strategy, you may be able to cash out your original down payment funds to recycle into the next project.

As well, I have a small new construction condo project and having a really hard time finding funds for it.I did few flips using my own credit and conventional mortgage to finance it but there's certain limitations to these approach as well as rehab cost is not lender's concern.