Collateral? 

What would you be using as collateral for the loan?

Is there anything wrong with the collateral property?

no real way around it unless your in the business and you can offset some of your interest income with business deductions but you still have to spend the money to deduct it.. although driving to your loans may allow some car write off perhaps.but really your going to make money and pay tax's its better to concentrate on the collateral and a safe investment so you actually have some income to worry about.. 

Hi Tina,The only type of loan you can utilize is a non-recourse loan in a SDIRA.A non-recourse loan is a secured loan backed by a pledge of collateral, typically the property that it is beingused to purchase, where neither the borrower, nor the borrower's self-directed IRA, will be held liable forpayment in the event of default.If a loan does default, the only asset the bank can go a􀁹er is the asset in question.

From the deposit account, those payments can be swept to where they need to be with no cross collateralization.  

Most work this way Rates: 9% to 13% (Most Deals are 11-12%)Terms: up to 36 Months (Most Deals are 6-12 months)Fees: 2-4 points(%) of loan amount paid at closing (Most Deals are 3 points(%))Minimum Loan Amount: $50,000 (For loans less than $250,000 $2,500 minimum fee)Max Loan: 65%-70% of After Repair Value(ARV)100% Rehab Financing Available (Require 20% of purchase price down payment or cross-collateral)Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 2 Weeks)NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.

Loans are classified by the collateral taken, not by who the borrower is, that can be a very thin line....

It’s what they rely on as their collateral, not your  STR business and the spread you can make relative to a traditional leasehold interest property. 

well i lived through it.. painful as it was.Gap lending is far to risky for almost anyone end of story.. totally agree.the only time it works is with some decent cross collateral and or you have a substantial relationship with the client and have done LOTS of deals with them for many years.