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I am wondering if anyone has bought rental properties through their IRA? I have 1 rental property at the moment and I also have some money in an old 401K. The thought of using that money to buy more properties is very appealing to me. Thoughts on this topic?
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It can be done but it's quite complicated and there are numerous things that can go wrong. Most advisers will advise against it. Nothing wrong with owning rental properties if that's your thing but do it outside of your retirement accounts.Steve
* Despite the high cost of living, it remains very popular.
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You need a self-directed IRA to do it, and the fees are astronomical. You have to be very careful that the IRA pays for all repairs and services. You cannot fix anything yourself. You cannot manage the property. You cannot collect the rent. The IRA must pay for all of those services. Depreciation happens inside the IRA, where it does you no good.
IMO, if you want to own rental property, then own it yourself. In your IRA, own a broadly diversified mix of stocks, bonds, and possibly cash.Comment
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