How to invest in rental properties with a Roth IRA

[Dylan Mathias]

Hi all,

While in college I worked fulled time at a fortune 500 company. I was able to put away a good amount in my 401k in the two years I have been at the company. I am now leaving the company and am going to roll my 401k into a tradition pre-tax IRA and then a self direct post tax Roth IRA.

I am moving most of my money into more conservative investments in the economical environment we are in.

I am wondering if anyone has information on how to invest in real estate rental properties with a Roth IRA. I have heard you have to hold your money with a 3rd party and besides that you can pretty much just use the money to invest.

I wanted to get peoples thoughts and if anyone knows someone that specializes in this area. I live a little North of San Francisco so someone close to that area would be great.

[Alina Trigub]

@Dylan Mathias You can move your money into SDIRA, but first learn about the prohibited transactions and the implications of UDFI and UBIT. You may be better off with solo 401k for your RE investment purposes. 

Best!