Can Self-Directed ROTH IRA purchase R.E. with tax-free?

[Phong Lam]

Hello BP Community,

How are you? Hope all is well! I'm a fairly new member on the BiggerPockets.

I just have a question for you regarding how to use a ROTH IRA funds to purchase real estate properties. Since all funds and capital gains are all growing tax-free inside of a ROTH IRA account. My questions are:

1.) IF we used ROTH IRA funds to buy a real estate property. Let's say if we purchased it for $100K and we held onto that property for 20 years and it grows to like $500K. Since we initiated the sale with using ROTH IRA funds to fund the deal, would the $400K capital gains be tax-free if we choose to sell it when we hit the legal retirement age?

2.) With the above example, IF we used $30K from ROTH IRA account to fund a $100K deal to pay for the 20% down plus closing costs, and we use the investment property as a rental, would all the rental income be considered TAX-FREE when we collect the monthly rentals? Not sure if the ROTH IRA tax-free funds being used to purchase the rental property will flow down to the rental income being collected each month.

Those are my 2 main questions regarding funding from ROTH IRA to purchase real estate properties.

Thank you very much in advance for your time! 

Best Regards,

Phong