Today’s first caller asked, “If I own my properties in a self-directed IRA, how can I use that cash flow from the rental income outside of the IRA to live financially free before retirement?” On today’s Q&A episode, I’m answering this question, and more!
This episode also contains listener questions on finding rental markets, and what to do with cash reserves if you want to grow your portfolio and pay off debt. As always, I appreciate your questions and I hope you find these episodes helpful on your journey to financial freedom.
On this episode you’ll learn:
- What you should consider before investing in a self-directed IRA.
- What to look for in a rental market.
- How to decide between investing and paying off debt.
What You Should Consider Before Investing in a Self-Directed IRA
If you choose to invest in a self-directed IRA, it’s important to know that you will not be able to touch those funds until retirement! Investing in an IRA is essentially saving for retirement. While investing in a self-directed IRA is truly an amazing investing strategy, it might not be right for you right now. If you need the cash flow immediately, I’d advise against using this strategy.
What to Look for in a Rental Market
If you Google the best real estate markets, you’re going to find a list with overinflated markets. Here are some things I look for in a rental market:
- low crime rates
- job growth
- job diversity
- great school districts
- landlord friendly legislation
- availability of property management teams
At this point, we find that West Texas checks all of these boxes, and I would highly recommend investing in that area.
How to Decide Between Investing and Paying Off Debt
Here’s some great news: you don’t have to decide! You can pursue two goals at once. I think you can improve your financial situation by taking this approach. Consider how you can split up your funds to pay off some of your debt, and also put down payments on cash flowing rental properties. It’s a win-win.
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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