Self Manage Rental Property Owned by SDIRA

[John Bell]

Could I manage a property that my SDIRA, LLC owns? Of course I can't pay myself but could I do it for free to increase cash flow?

John Bell

[Brian Eastman]

@John Bell

As a disqualified person, you cannot benefit from, nor can you inject benefit into the IRA.

In this role, you are allowed to provide a limited amount of administrative services to the IRA, in essence acting as a fund manager putting the capital to work.

We are comfortable with clients self-managing a handful of rentals in a moderate sense.  So, signing a lease, collecting rents, paying for expenses such as repairs, property taxes etc.

You should not inject value by providing any licensed services for free or any sweat equity. If you are fortunate enough to have an IRA capable of owning, say 20 doors, then even just moving the paper around becomes a good bit of work and could be viewed as providing services to the IRA.

The code is not black and white on this matter, so caution is in order.  

If you want to be 100% sure you are in compliance, have the IRA hire a property manager who is not a disqualified person.