Buying 1st Home in New City (SDIRA)

[JP P.]

Hi All,

I'm looking to get into the real estate investing with my very first home purchase in a new city, and I've heard of this Self Directed IRA (SDIRA) form of investing tax free.

I'm purchasing a home with my Roth IRA (5,500 max p/year @ "X" amount of years) for the downpayment. I would live in this home for at least 1 year maybe 2 max. But after that I am renting it out. I've been to some seminars and have read that you can you a Custodial IRA brokerage to purchase investment properties, but I've also read I cant have an IRA purchase a personal resident because if I have part of the property financed through personal lending. I'm a little confused and looking for some clarification.

My thought process was/is:  I could purchase a home with my Roth, live in it for 1-2 years until the high market for rent, rent the place out and then use the profit from the high rental market to put back into my Roth tax free.  I would move out the house and purchase my next place to live in.