Help need financing ideas

[Roman McIntosh]

The house next door to mine is currently rented to my sister in-law. The owner informed her of intend to put the house on the market at the end of her lease in 3 months. We intended to buy the house using a self-directed IRA but it my understanding my wife and I cannot combine our self directed IRA monies in the same deal and cannot rent to the sister in-law because she is related. That realization hasn't left us much time to get a down payment that would high enough to cover the rent we can charge the sister in-law. If it all possible I would like to buy this house but don't have enough for a down payment. I do own a rent house free and clear the we collect $900 a month on that is worth about $75k.

[Brian Eastman]

@Roman McIntosh

Your understanding of the situation is mistaken. You should be able to use IRA funds in both your name and those of your spouse. It is a little more administratively complex, but when properly structured can be done within the IRS guidelines.

A sibling is not considered a disqualified party to an IRA. As such your wife's IRA having involvement in a transaction involving her sister is not prohibited. You do want to ensure that the transaction is at fair market rates.

I suggest you speak with a quality provider of self directed IRA plans who can provide the necessary guidance to help you pursue this transaction with confidence.