We are a couple in our 70's with a sound outbuilding that, with $30K, could be remodeled as an ADU rental unit.
We owe $120K on our home, which is valued today at about $280K. We are both doing part time work, but want to fully retire in a year and could use additional income. The ADU would probably rent for about $900, enough to ease the strain. We are wondering if we should use a $30K Roth Ira for the remodel or take out a home equity loan or refinance. Somewhere my husband heard that we could borrow from ourselves, with the Roth, and pay ourselves the interest. Would this make $$ sense? It is cash flow that concerns me.
Using a Roth to build an ADU for retirement income.
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