Rental Income and SDIRA
Hey guys, I'm looking to purchase a multifamily unit, a quadplex to be exact, with the focus being on producing more household income. I'm considering either using a VA loan to build new or use an SDIRA for a down payment on a conventional loan.
I was wondering if somebody could help me understand how rental income would be treated off the property if I used an SDIRA. Also, I'm kind of assuming that it can be used for a downpayment and not the entire ask.
Thanks in advance.
Most Popular Reply
If your IRA owns the land, YOU cannot build a quad on that land.
All IRA investments must be done entirely at arm's length, with no transactions or nexus of benefit in either direction between you and the plan. This prohibition extends to certain family members and family owned businesses as well.
A self-directed IRA is not a way for you to access tax-sheltered IRA money for your deals. Rather, it is a means for you to take existing retirement savings and diversify from market based assets into solid assets such as real estate. But it is all exclusively for the benefit of the IRA.