Updated about 7 years ago on . Most recent reply
Self Directed IRA for Down Payment for Rental Property
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?
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#1 New Member Introductions Contributor
- Solo 401k Expert
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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.