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Real Estate Investing With A Real Estate IRA

rental property

One of the best things you can do for your retirement accounts is to diversify it! Instead of sticking to just stocks get creative and invest your retirement in a much smarter and more diversified way. One of the best ways to diversify your retirement account is with a self directed IRA. If you already have a self directed IRA and are looking for something to invest in one great option is a rental property. Those buying a rental property inside of their IRA usually call it a real estate IRA. If you are interested in a rental property then one bit of advice is to purchase your real estate property in a great location. The following are some great locations for a rental property:

Median asking price For 3-bedroom house: $149,911
Median rent for 3-bedroom house: $1,400

The plain and simple truth about Houston is that you can make your money back and at a decent rate. You should be able to make roughly 10% of your money back within the first year before costs and taxes. Another thing that is great about Houston is that you don't have to worry about vacancy rates as much. It isn't near the top 10 worst markets for vacancy rates. You should be able to find a tenant as long as everything else is normal with your rental property.

Median asking price for 3-bedroom house: $134,900
Median rent for 3-bedroom house: $1,700

It doesn't seem like the place for a rental property but if you look at the numbers it appears to be a great place for a rental property. Based on the median's alone you will  make back roughly 15% of your investment in the first year alone. That sounds like a great rental if you ask me.  

Colorado Springs Colorado
Vacancy rate: 5.3%
Average rent: $713

This is a rental property owners paradise. Renters have to scrape through plenty of listings just to find vacancies. Rental prices aren't rising. While this at first seems like a negative for you but what it means in the long run is that you'll be able to hold tennants longer and not have to scrounge around looking for another tenant. Less time with your rental not being rented sounds like a win!. Another great plus for buyers is that home prices haven't fallen far like others have which means you have worry as much about your investment being under water after you purchase it.
Median asking price for 3-bedroom house: $44,900
Median rent for 3-bedroom house: $850

The fact that you can buy a home for so cheap and still rent it for a decent amount is amazing. Detroit should be looked at very skeptically though as Detroit has one of if not the highest vacancy rates among the nation. The vacancy rate is in In the mid to upper teens. If you are looking for a rental property here be ye warned and make sure you go in knowing all of the variables.

Regardless of where you look for your next rental property doing it within an IRA has many benefits that you can't get without a retirement account. We can help you set up an account and get you set up for investing in that rental property you've been looking at.

If you need more information or help figuring out what is involved with investing inside of a self directed IRA or are looking for a real estate IRA then please contact us. We will make sure your set up to diversify your retirement.