c) Could this strategy be implemented to fund the purchase of a 1-4 unit residential property if the IRA holder is an owner-occupant?

This is what I see:Purchase Price = 260,00020% Down = 52,000Gross Potential Income = 50,40050% of GPI = 25,200 which is also your NOIDebt Service / 80% LTV / 20 yr amm / 6% = 17,882.16Cash Flow = 7,317.84Cash on Cash = 14.1%Keep in mind that this is a C property so your expenses could be higher then 50%.

@Matt C.

An A/C unit blew 4 months later, 1 of 4, that was 6K!

@David C.

@David C. that's just wrong.

As far as my personal purchase price, I'm thinking I could purchase for less b/c there would be zero commission under that scenario and we might even be able to transfer it to me w/o paying conveyance tax.

For example if you have a interest only loan and that gets you 15% C on C then in my opinion it is not a good deal.

Originally posted by @David C.: Maybe you could sell it to that neighbor?

@Jon Klaus Funny, the guy that put me in touch with the broker just called b/c I did not sign the docs (he too was not aware) and wants to schedule a conference call with the guy to talk