Using Self-Directed IRA to Buy Short-Term Rental

[Justin Campbell]

Hey BP Community,

I have met with a self-directed IRA firm and am exploring the possibility of using my retirement to buy a short-term rental. I'm familiar with the basic rules surrounding the product, but I'm wondering if anyone can suggest a quality location to invest my $120,000? I'd like to be able to pay cash for a place that has a solid ROI. If you know of anyone who manages short-term rentals, I would appreciate that referral as well.

Thanks!

[Collin Hays]

Self-directed IRA firms are giving a lot of really, really bad counsel. Buying an STR with your IRA is a bad idea. It is a minefield of problems that could land you in trouble with the IRS, plus you are going to end up paying UBIT tax.

Just don't.