Self directed IRA advice

[Scott W.]

New member and appreciate this forum. I am interested in using IRA savings for starting out with rental property(s) with a goal of generating income that can feed my retirement savings. My portfolio up to this point consists of a managed brokerage account of mutual funds/bonds. My preference is to open a self directed IRA (checkbook option?) to purchase my first property that I will rent

Some questions for the team:

- Any people with specific experience with a self directed Ira funding real estate investments.  Please PM me if you are available to coach me on lessons learned

- Any recommendations on a self directed IRA company that I can start speaking with?

- I might start with a tiny house and use that as a weekly/monthly rental   Again, any experience with that arrangement?  Fairly low cost to entry 

- Anyone in the Downingtown PA or Philadelphia PA area with a real estate and personal tax accountant that you could recommend?  

Thank you for all of the help in advance    

Scott 

[Caroline C.]

@Scott W. Since you can't co-mingle your personal funds and IRA funds, make sure you have enough funds in reserve to handle any unexpected repairs or expenses during lengthy vacancies.

Also, since IRA investments are supposed to be hands off and arms length, you'll be safest by hiring a property manager to manage your property and external companies to make major renovations.

Going the checkbook control route is great because it gives you full freedom to sign for yourself and to fund deals when you want, but you also are acting as your own custodian and so it is easier to run afoul of the IRA rules. Alternative is to hire one of the custodian/trust companies but you don't get checkbook control and they can be slow and difficult to work with.