How to best use my self-directed IRA

[Jay Kaltenbach]

Hello everyone.... I am a relatively new real estate investor looking for some advice/recommendations. I am in the Columbus OH area and would like to know how to make best use of my self-directed IRA. I am seriously considering the "buy and hold" route so that I can create a portfolio of properties that will provide passive income down the road and I would like to retire from my full-time J.O.B. in the next 7-10 years (definitely closer to 7). I am not sure whether to use the IRA to pay cash for a property or try to get a loan somewhere? I have used my IRA in the past to do a fix and flip a couple of years ago and currently I have some of it invested with an investor here in Columbus.
Also, when looking and properties for the "buy and hold" strategy should I be worried about the ARV or Cash Flow...... I guess that depends on how I purchase the property?

Thanks for letting me ask and I hope these questions are not too "dumb".

Jay

[Will Barnard]

Originally posted by Mike Neubauer:

The other option is to invest with your retirement funds using non-recourse loans. These profits from debt-financed income are not taxed, even if it is unrelated.

If in a 401k, then correct, if in an IRA, not correct, UDFI (unrelated debt financed income) will trigger UBIT UNLESS the loan is paid off 365 days prior to the sale.