Self Directed IRA for Down Payment for Rental Property

[Brian Knier]

So I'm trying to get myself up to speed on the requirements and details for SDIRA funding for real estate investments. If I were to use personal SDIRA funds for a 20% down payment on a buy and hold rental property and financed the rest with a conventional loan, would 20% of the rental income (the SDIRA's "share") need to go into the SDIRA? 

If so, would those IRA contributions be after-tax or tax deferred?

[Dmitriy Fomichenko]

@Brian Knier

when financing investment property in an IRA you can't use conventional financing because you are not allowed to provide a personal guarantee. Therefore non-recourse financing must be utilized. This typically requires 40% down.

The property must be owned by the IRA 100% and 100% of the income and expenses will be attributed to an IRA also.