Purchasing a property with IRA $ in Bloomfield, NM.

[Eric Neal]

Hi, Everyone,

I'm currently looking at picking up a rental property in San Juan County, New Mexico using a 40% down IRA Loan. My report can be found here:

Basically, it looks like I would "make" about $20/month and about a 4% rate of return. The guy who is helping me find a property, who also invests in the area, says that I should take depreciation into account and that my assumptions are too conservative. 1) I'm right to assume that if I buy this property with IRA dollars I can't take depreciation AND the tax deferment, right? 2) Does anyone else invest in Bloomfield, NM, Aztec, NM, Farmington, NM, San Juan County, Northwest New Mexico or a similar area and can tell me if my reserves are too conservative? Thank you!