In a previous post MonTexan and LagunaLauren both mentioned buying RE with a self - directed IRA. Does anyone else have any experience or insight on this? After some research on this I am wondering if it would be a good fit to my portfolio. I like the feeling of control I get with RE investments, and I don't like the uncontrolled free fall that the stock market just went thru.
A scenario for buying in my IRA would look something like this:
Pay cash for an investment property - 100k
Gross income per year - 16k
Cash flow after expenses - 8k (simplified numbers)
So is this worth it? I have 8k going back into my IRA every year. In 5 years if I can sell it for 140k + 40k in rents, that will give me 80k.
Also, I have a seperate contracting company that does all the work and maintenance on my properties. Can I use this entity for an IRA held property?, or am I just asking for trouble?
Let me know what you think!
A scenario for buying in my IRA would look something like this:
Pay cash for an investment property - 100k
Gross income per year - 16k
Cash flow after expenses - 8k (simplified numbers)
So is this worth it? I have 8k going back into my IRA every year. In 5 years if I can sell it for 140k + 40k in rents, that will give me 80k.
Also, I have a seperate contracting company that does all the work and maintenance on my properties. Can I use this entity for an IRA held property?, or am I just asking for trouble?
Let me know what you think!
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