A self-directed IRA can hold real estate, with strict rules
A self-directed IRA allows real estate, including short-term rental property, as a permitted investment -- but it comes with prohibited transaction rules that disqualify personal use of the property and restrict who can be involved in managing or benefiting from it.
All income and expenses must flow through the IRA itself, which means the property can't be financed with a standard personal mortgage in most structures, and violating the rules can trigger serious tax consequences.
This is a specialist structure -- coordinate before you commit capital
Self-directed IRA real estate investing requires a specialized custodian and careful structuring from the outset; it is not a do-it-yourself add-on to a normal IRA account.
Anyone considering this route should coordinate with both a self-directed IRA custodian and a tax advisor before identifying a property, since the structure has to be right before underwriting even begins -- a done-for-you acquisition process can underwrite the property itself once the structure is confirmed.
BNB Accelerator's acquisitions team, led by Nick Korom, screens over 1,000 short-term rental listings a week and hand-delivers the roughly 2% that clear underwriting. Book a free consultation to see what a done-for-you short-term rental acquisition looks like for your situation.
Frequently asked
Can I stay at a short-term rental owned by my self-directed IRA?
Generally no -- personal use by the account holder or certain related parties is a prohibited transaction under IRS rules for these accounts. Confirm specifics with a qualified custodian and tax advisor.
Does BNB Accelerator set up the self-directed IRA?
No -- that's handled by a specialized self-directed IRA custodian. BNB Accelerator can underwrite and source the property once your structure is in place.