Buying Investment property with a self directed 401K

[Tony Wallis]

Can anyone speak to buying investment property using a self directed 401K?  My understanding is the cash flow must go back into the 401K and it must be a non recourse loan. love to get some input / feedback 

[Dmitriy Fomichenko]

@Tony Wallis,

Your understanding is correct: all income from the investment (rental property or otherwise) owned by the 401k belongs to the 401k. Likewise, all expenses directly related to the investment must be paid from the 401k. 

Yes, if you wish to finance the purchase of the property - loan must be non-recourse. Here is a list of lenders offering such loans:

https://www.biggerpockets.com/...

I think you will benefit from the following discussion on the topic:

https://www.biggerpockets.com/...