How to deploy $50k in a SDIRA?

[Ken Badziak]

Looking for input from the BP Nation.

I've got about $50k sitting in a SD Roth IRA. I want to deploy said money to start purchasing some cash flowing units.

Although I'm down in South Florida, I'm looking mostly to start investing up in Ohio; I feel I can get far better bang for my buck up there than I currently can down here in the Miami area. Although I plan on subbing out the PM to a local guy up in Cleveland, the company I work for has direct flights daily, so getting to and from wouldn't be an issue.

So the question I have is this; would it be better to use the money in the account to purchase a SFR outright and collect the cashflow, building up enough capital to purchase another then another house, or would it be a better idea to leverage out that money and pick up a couple of units (or maybe even a quad or two?) and put the properties under a 30 year mortgage?

I'm not a tax expert, so I would have to find someone I can work with on that end (as I'm currently shopping for a new CPA anyways) but I know that one can hold a mortgage inside of an SDIRA, it just becomes more complicated.

So what would you do? Use the roughly $50k to purchase a single unit outright, or split it up for multiple down payments and purchase a few units?

[Logan Allec]

Have you thought about notes?  Real estate is already a very tax-efficient investment, making it suitable to hold outside a Roth.  Notes are not tax-efficient, making them great to hold inside a Roth.