Remember, additional real estate can be purchased in your SDIRA in combination with a mortgage loan when an all-cash purchase is not possible. However the results may change.
The amount of rental income will vary based on amount of the down payment, interest rate and the mortgage loan which will reduce the net rental income by the amount of the mortgage principal and interest payment.
Below is a table demonstrating the growth yielding 8.8%* after the reinvestment of the Rental Income Account Value from 3 typical homes over a ten-year span.
| Year | Annual Rental Income |
Annual Gain on Rental Income |
Accumulated Account Value After Investment Yield |
| 1 | $23,400 | $1,170 | $24,570 |
| 2 | $23,400 | $3,357 | $51,327 |
| 3 | $23,400 | $5,738 | $80,465 |
| 4 | $23,400 | $8,331 | $112,196 |
| 5 | $23,400 | $11,155 | $146,752 |
| 6 | $23,400 | $14,231 | $184,383 |
| 7 | $23,400 | $17,580 | $225,363 |
| 8 | $23,400 | $21,227 | $269,990 |
| 9 | $23,400 | $25,199 | $318,589 |
| 10 | $23,400 | $29,524 | $371,513 |
Past performance is no guarantee of future results
On 3 homes at an initial purchase of $140,000 each, totaling $420,000. Your total gain:
| $1,024,036 | Rental income and appreciation for a 12-year period |
| $ 137,513 | Gain on rental income investment after 12 years |
| $ 1,161,549 | Total account value gain to your IRA |
At Asset Exchange Strategies, LLC we have had conversations with potential self-directed IRA clients many thousands of times and the myths continue to live on after 20 years in the business. Some things like Sasquatch or area 51 seem to perpetuate in people’s minds without any substantial evidence the concept is correct or myth. Let’s […]
Copyright © 2020 MyRealEstateIRA.com
