What to do w/ $10k SDIRA - Opinions

[Brian Smith]

Hi all,

I have a 401k from my old job with about $10k basically just sitting there barely making a return. I am brand new to the REI game (have my first house about to settle and looking to start a business investing in rental properties), I have been researching self-directed IRAs and will most likely move my 401k into one of these.

Mainly I'm just looking for suggestions - what would you do in this situation? I'm not new to the SDIRA concept, but I'm certainly no expert. I've read a lot of the limitations - so obviously I cannot use this to help with my business, since I will be directly involved with it. $10k is pretty much too little to purchase a property cash, but not quite enough to cover a down payment + closing costs to finance.

A couple ideas come to mind and I'm curious to hear anyone's thoughts and opinions.

-Use it to invest in some sort of 'side investment' to supplement my retirement. If so, would you try to acquire a property, or possibly invest in mortgage notes? (a whole other world I would need to research)

-Take the cash out and take the tax hit, and use the rest towards my main business.

Thanks for your response in advance. I'm looking to spark some possible new ideas so any feedback is welcome.