As long as you are adhering to IRS guidelines (not living in the house, not performing "sweat equity", etc.) you can choose from a wide range of income-producing properties to diversify your self-directed retirement plan.

etc...If you're interested in a cash flow property, make sure you get a high income producing property.

I want to diversify the areas that I invest in, but my strategy is different from yours in that I prefer lower cost properties that tend to produce high cap rates.

My advice is to have the tenants put all utilities in their name and produce the account numbers BEFORE you give them the keys.

I'm in Denver, where you don't even have to remove the dead bodies and you still get top dollar for it.

In economics 101, the more you produce of an item, the average cost goes down.

We then refinanced the property and it has given us $140k in cash back and continually produces $1,800/month in cash flow.

Keep in mind that in addition to not producing any notable revenue for the company, you come with a certain amount of risk or liability that they assume responsibility for.

The low initial investment, quick cash, and eye opening profit margins allowed me to invest in, and now own, a nice portfolio of income producing real estate.

However if you look at the loss expense together with the cost of producing the product and marketing expense I think you'll find the profit margin in line with other insurance companies.