Multifamily Syndication with SD IRA/Solo 401K

[Adam Cousley]

I’ve seen parts of this question answered, in previous threads, but looking for a more comprehensive answer/advice.

Quick background, I currently work a W2 job, have my real estate license and practice general brokerage on the side, and will be using some excess cash I’ve been able to save to invest in small multifamily (1-4 units) real estate.

Aside from those factors and getting to my question, I have a 401K from a previous employer, pension from that employer, and small personal IRA (Traditional) which I would like to rollover into a SD IRA or Solo 401K (if I qualify) to passively invest in MF Syndications.Total rollover would be approximately $70K.

What would be the best way to do this, SD IRA vs. Solo 401K vs other option, to meet requirement and minimize exposure to UBIT and UDFI?

Thank you in advance.

[Carl Fischer]

@Adam Cousley

I think the 401k (solo or not) is a better option based on the fact you will be getting a mortgage and much less chance of UDFI/UBIT as @Brian Eastman outlined.