@Gail GreenbergSince the IRA custodian has to perform the 1099-R reporting on all IRA distributions, yes the funds would need to flow back to the IRA custodian from the LLC bank account and the custodian would then process and report the cash distribution.

I've given people I know who trust me personal guarantees and got loans for 1/2 my downpayment (they know I'm good for it as I can cover the debt on a global cash flow level).

Which will be best for you will depend on your specific situation and goals.The advantage of using the retirement plan to invest in real estate is that you will have access to the full amount of your retirement capital and any growth through cash flow and appreciation will be tax deferred.  

I also sold my California home just this past January and now I'm kicking myself for not keeping both properties for cash flow.

I feel like I have a good pulse on the market here in Colorado and have not noticed a large uptick in inventory however deal flow has increased recently and our offers are being accepted without as much competition.  

Multi-units here tend to cash flow best in B or C class neighborhoods like Oildale (North Bakersfield), Northeast Bakersfield, Downtown, and places immediately West of the 99 freeway.

Ken Virzi Keep then flowing Ken, I've heard too many horror stories with lawsuits here on BP with partners.

Maybe it'll work out for you but having negative cash flow bugs me even though my wife and I can afford it. 

This is one of the only deals I've seen where cashflow isn't negative. 1968 triplex with 3 car garage on the market for 71 days.Purchase price: $289,900Estimated cost of repairs:  $5000ARV: $335,000 (this is best guess with what comps I was able to dig up)Closing costs: $2500Down pmt: 25% ($72,475)Loan amt: $217,425 amortized over 39 years @ 5% interestUtilities are paid by tenants so I would only have to worry about trash ($84/mo), insurance ($167/mo).Maintanance and repairs: $132.10CapEx: $264.20Vacancy: $132.10Property taxes: $279.67Rental income: $2642.00Cash flow: $415.75Cash on cash ROI: $6.24%I have not walked the property so I can't be certain what the HVAC or roof look like.  

An MLS deal will never be a good dealCash flow on paper doesn't equal cash flow in real lifeI'm too busy to think about direct mail, etc, etc The kernel of truth in all of these excuses helped me to convince myself I was being prudent and being smart by waiting until I had more money or more relationships or more of this or more of that.