The rental property with self-directed IRA

[Joe Zhang]

The property was purchased from www.hubzu.com and closed in the end of July 2014. 

This is the first real estate purchase with my self-directed IRA account. The transaction was smoother than I thought. The custodian I am working with did a nice job so far. But I don't know yet how it goes in term of the rental management.

The purchase price is $117,000.  4 bed, 2 bath, 1300 sqf.  the lot is 0.6 acre.

The condition inside was pretty bad, nothing was working. it smelled horrible. I had to have the carpet replaced, get the trash out and much more ...

It's surprised that there were no leaks on the first day when the water was turned on.

The owner lost the house to the bank, but he still rented this house to a tenant for another one and half years. My question for him is if you received the rent, why didn't you pay back the bank, but rather choose to lose the house? where is the logic? what a crazy guy!

This has been a history. Now, I am hoping to turn the piece of crap to treasures.

The cost of repair is around $8000, maybe a little more.

it's ready. it will be listing for $1350.

I don't plan to hold this one for long term. I am not sure the time frame yet, hopefully not too long. Meanwhile I am making calls for the non-recourse loan if it is possible....

I will be updating my experience with the IRA custodian.