I know that I can purchase rental property with my Roth IRA and take any profits back in tax free. This means having the IRA funds to purchase the property and cover all expenses on it. Now, if I purchase a property that needs some rehab, and let’s say I underestimate the repairs, and my IRA runs out of funds. What non-prohibited means do I have to fund the remaining costs of renovation? Any thoughts on strategies to anticipate this before I purchase the property?

My current plan is to have my Roth IRA with Equity Trust purchase an undervalued rental property using a short term, hard money loan, then refinance with a non-recourse lender for the maximum amount that this lender will allow. After the hard money loan is paid back, the IRA should have about $50K in remaining funds to do the rehab. My concern is that the rehab may cost more like $70K.

Thanks,
Bob