Self Directed IRA Strategy-1st Deal

[Andrew Riggs]

I recently rolled over a 401K to a Self Directed IRA and have an opportunity to buy a house in a somewhat rough area, but a solid house with good rental potential. It's $33K and needs $7-10K with an ARV of $55-60K. The seller has a family interested in renting for $1,000/mo. It would cash flow around $700/mo after taxes, insurance, and deferred maintenance. Since there's not a lot of upside equity potential, would you buy and hold and keep generating $700/mo, or establish a good rental history and sell it off for $60K in a year or so, potentially putting $28K in profit back to the IRA?