7 Types of Real Estate Allowed in a Self-Directed IRA

Self-directed IRAs are the only retirement accounts that allow investors to pursue alternative investments. Among those alternatives, the most popular is real estate—a broad asset class that includes many different investment opportunities. Self-directed IRA investing offers great tax advantages to real estate investors, though the exact benefit will depend on the type of account used. When investing through a self-directed IRA, your real estate investment options are nearly endless. Choose between rental properties (both residential and commercial), undeveloped land, fix-and-flip opportunities, and more. In this article, we will describe some of those opportunities by exploring seven types of real estate that can be held in a self-directed IRA:

Single-Family Homes
Single-family homes are the most common type of residential property, and the most common type of real estate found in self-directed IRAs. These properties can be the key to both short-term and long-term retirement strategies, with tenants bringing in regular rental payments to help boost savings.

Multi-Family Units
Multi-family units, such as apartments or condo complexes, are similar to single-family homes in that they can bring in regular rental income; however, because multi-family units are larger and bring in more tenants, they have greater potential to boost your savings. They can also require more maintenance, on the other hand, so be sure to consider all the angles before choosing an investment opportunity.

Commercial Property
From retail to office buildings, it’s all possible. If your self-directed IRA doesn’t have enough cash for these types of investments, your IRA can even apply for a non-recourse loan or partner with other funding sources. Commercial property is a broad category of real estate investments which includes anything from a grocery store or an office building to…