How much of a SDIRA balance is available to use?

[Christopher Throop]

Quick question here.  If I open an SDIRA, how much of the balance can be used for investing?  Can I invest it all and have a zero balance, or will I need to keep a certain amount in reserve?

[Loren Whitney]

100%

However, if your IRA owns the property, it is responsible for any expenses related to the property. It's very important to plan carefully when it comes to cash buffers. Some SDIRA providers have minimum cash balance requirements and others do not. If you acquire non-recourse financing, the lender will most likely have requirements of their own for reserves.

[Brian Eastman]

@Christopher Throop

To clarify, there are no IRS restrictions as to how much of an IRA may be invested.

There are however, two practical considerations:

As Loren notes, you would need to have reserves in the account to handle any operating expenses (planned or unexpected) associated with the investment of the IRA. You may not use personal funds to pay for repairs, property taxes, etc. associated with your IRA's investment.

The institution serving as custodian for the IRA will likely have a minimum balance requirement - typically in the neighborhood of $200-$500. They will draw their future account fees from this portion of the IRA and it will need to be replenished over time.

[Christopher Throop]

@Brian Eastman  @Loren Whitney

Thank you for the quick responses.  I'm considering more of a crowd funding-type investment which wouldn't have any requirements for additional funds beyond the initial investment.  So, if I plan on keeping $1,000 or so in the account to cover fees and expenses, it sounds like I should be good.  Of course I'll take this up with potential custodians before I commit, but this helps me decide if my plan is even feasible--and I think it is.  Thanks!