Does it make sense to contribute to a retirement account like a self-directed IRA after age 59½? And if so, how soon can you withdraw the cash flow from your rental properties inside of that account? That’s the first question I’m answering on today’s show!
On this episode of Investing in Real Estate, I’m answering three listener questions about withdrawing from a self-directed IRA, how to find a HELOC for an investment property, and how to decide what type of property you should add to your portfolio. Please join me for this Q&A episode!
On this episode you’ll learn:
- What 59½+ investors need to know about withdrawing from a self-directed IRA.
- How to find a HELOC for an investment property.
- What you need to know about investing in condos.
What 59½ Investors Need to Know About Withdrawing From a Self-Directed IRA
With a self-directed Roth IRA, investors over the age of 59½ must follow the five-year-rule. The entire point of the IRA is withdraw your earnings tax-free, so it’s important to follow all the rules and regulations set forth by the IRS. With the five-year-rule, all funds contributed to a Roth IRA must sit in the account for five years before withdrawal in order to receive tax-free status.
How to Find a HELOC for an Investment Property
HELOCs for rental properties can be hard to come by, but that doesn’t mean it’s impossible. Start shopping locally first: check out your local banks and credit unions, and connect with other investors at meetups. If you are unable to find a HELOC for your investment property, you may want to consider business lines of credit or a cash out refinance.
What You Need to Know About Investing in Condos
If you’re considering investing in condos, you should be informed about any possible homeowners’ association fees that could apply. Although condos are cheaper to purchase than single-family homes, the cost of an HOA can really rack up over time. As always, just make sure you’re doing your due diligence.
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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