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Updated over 1 year ago,

User Stats

107
Posts
34
Votes
Angie Menegay
  • Rental Property Investor
  • Irving, TX
34
Votes |
107
Posts

(Yet Another :-) SDIRA LLC Prohibited Transaction Question

Angie Menegay
  • Rental Property Investor
  • Irving, TX
Posted

Hi experts,

There is a property I'd like to purchase (for sentimental reasons) to live in in about ~5-8 years. Due to the current high mortgage rates and low rental rates in the area, it will bleed me alive if I purchase and finance 80% of it as a rental for the next ~5-8 years (probably negative cash flow of ~$1500/month due to interests).

I have enough funds in my Roth SDIRA (with checkbook LLC) to purchase it outright and rent it out for the next ~5-8 years (break-even) until I'm ready to move into it. I totally get that it's a terrible investment (again it's because of sentimental reasons).

I presume selling the property from the SDIRA LLC to me in ~5-8 years will be a prohibited transaction? If so, I don't know how to lock in this property now to allow me the ability to live in it in the future :-(. Any suggestions on how to approach this would be greatly appreciated.

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