Self directed 401K — BRRRR?

[Matt F.]

Is there any strategy that allows for a self-directed 401K or IRA to buy a BRRRR property, get cashed out upon refinance, and have the property somehow transfer out of the 401K so that resulting equity and cash flow aren't trapped inside the account until retirement?

I’m assuming no, but thought it was worth asking.

Thanks!

[Dmitriy Fomichenko]

@Matt F.

The purpose of a self-directed IRA or self-directed 401k is to give you the ability to diversify into alternative investments outside of the stock market. You can not use any of the the IRA investments for your personal benefits, your IRA can not engage in any transaction with yourself or any other disqualified person, nor can you provide any services to your IRA.