Should I Invest in Performing Notes?

[Eric Schwake]

Ok so here's my scenario.  Would love some feedback on whether a performing note would be the correct option for me.

I'm in the process of opening an SDIRA. My first investment in that will be a rental property which I'll be buying for cash all in at ~$80k. I'll put about $8k into some low expense ETF's to hopefully earn a little interest but more importantly be usable as an emergency fund for the rental. I will have around $50K left in the SDIRA so this comes to the my question. Should I invest the remaining money into a performing note? Or should I put that $50K into low expense ETF's while looking for another good rental property to purchase at a later date. As a side note I'll still have ~$40K in my Betterment IRA investing in stocks so I'm not putting all my eggs into the real estate basket, just a majority of them :).

[Jay Hinrichs]

why would you buy a rental in a SIDRA  you lose the depreciation benefits.. which is one main reason to buy a rental in the first place.. notes are the best vehicle for retirement accounts. 

UNLESS you think there is going to be some VERY significant appreciation at play  ..

you may want to talk to your accountant before you do that. for fixed assets I have bought timber land in Oregon in my SIDRA and that worked great.. and I like the IRA for a syndicated investment as well were the real goal is upside in 5 to 7 years.. which folks are HOPING for.. :) but a 50k rental on its face is usually in a market with little to no appreciation and a lot of expenses to run it..