All Forum Posts by: Monte Young

We have tried companies and individuals, both have major challenges.   I agree front row is best however that would have been triple my current investment and likely not viable as an Airbnb.  

I live in a beach community and through the years I had continuously walked by a shingle-sided house with a great ocean view.  The husband had passed away and the wife bought a new house and the beach house had sat for five years and started to deteriorate.  I found out from a neighbor that the place was going to be for sale and I approached the seller.  She named a price that was quite good and I bought it by selling another property that I had owned as a long-term rental through my self-directed 401K.  I spent the summer renovating the house which needed a lot of work.  I moved a renter in for several months and then June of 2021 launched it as an Airbnb.  It worked out very well with my best month in August with over 10K in revenue.  I have great management and an extreme attention to detail. I own it in my 401K so the income is tax-free until it's taken out.  A good view, a unique home, a great quiet location, and a competitive price are critical.  The biggest challenge is cleaning, we have gone through lots of cleaners to find some that are as picky as we are for our guests. I have already made more in the few months I have had the Airbnb going than I would have in a full year with the long-term rental.  Location, quality, price point, and the best team are the keys. 

Thanks Brian, I had thought that the separation may be enough, what you indicated makes sense.  

I own a tri-plex with a partner 50/50.  i plan to sell her my half interest for the debt plus 100K with no cash changing hands.  I will then sell a property owned by my 401K.  With those funds I will purchase the property I sold to my partner taking out the full debt and giving her 100K.   These are two separate transactions.  will this be allowed under the rules for self directed 401k's