Is this legal?
My CPA is coming on Saturday to discuss this but I like and value different opinions in particular from other experienced professionals.
I have set up a self directed real estate IRA and will fund it with $100,000. I would like to buy two town homes in a hot area of Tampa. The $100,000 would finance the down payments and closing costs. I am hoping to see a tax benefit.
I would set this up in an LLC with my son as a member. I would rent out both units and put my son in one. He would obviously pay rent. My thought is that I would "pay" him to manage the other property.
If I financed on 15 year mortgages, I would have a significant rental stream in year 16 plus appreciation..
Any thoughts?