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Updated over 4 years ago,
Self Directed IRA to buy and hold rental
I am planning to open a Self Directed IRA and rollover funds from an old 401K account. I want to buy and hold single family rental. However, the account doesn't have enough funds to buy the property in full. The funds are sufficient for down payment + closing cost + repairs + reserve.
So I (my IRA) may have to take out a non-recourse loan, but interest rates on non-recourse loans are ridiculously high and plus other drawbacks like UBIT tax etc.
Any suggestions on better ways to use that old 401K ?