Self-directed retirement plans are allowed to hold many different types of real estate as assets. Rentals are one way investors choose to build retirement income.

How it Works

  • Rental investment options include single and multi-family homes, condos, townhomes, commercial, and offshore property.
  • Returns on investments are made through the cost charges for rent and are deposited directly into the IRA.
  • All expenses must be paid with funds from the retirement plan.
  • Repairs, maintenance, and property management must be performed by third parties.
  • Due diligence must be performed by the IRA owner. This includes investigating the property and surrounding area to ensure it’s viable rental income producing property.
  • You are able to partner your IRA’s funds with personal funds, or with another person or IRA to acquire more lucrative rental investments.
  • One caveat is the fact that you can earn retirement income over a period of time through rental income, wait for the property value to appreciate over time and then sell it for an additional gain in your IRA.

If you are interested in learning more, contact Midland IRA. We can explain the details and help you get started investing in rental property today.