Hello,
Not sure if I should be posting here or in another section, so Mods, please feel free to move as needed.
I want to purchase a triplex and live in 1 Unit, and want to use $$ from my Solo 401k for down payment.
1. Do any of you Real Estate Investors do this? (Hold your investment inside your 401k?)
2. If so, can you recommend a company you have experience with? (My solo is with Fidelity, self administered, and they do not allow it, so I will have to transfer my 401k to a company that does allow it)
3. Do you know of any "gotchas" that a newbie may not be aware of?
Backstory is I Fired Myself in 2016, but DH owns business and never will stop working. I got bored, started my own IT Consulting LLC and opened a Solo401k at Fidelity and contributed to it last year and this year.
We plan to keep the home we live in now, which is paid off. The new home is being purchased because my business and DH business is coming more and more from a large City 2+ hours from our current location and we are spending +$12K on traveling there (per year) for the past 2 years.
I also have been wanting to diversify into Real Estate Investing for additional income. My current portfolio exceeds $800K, is 75% in low cost index funds, rest in bonds and of that, I have $60K in the Solo 401k that I plan to use for downpayment, etc.
This week I put an offer on a $400K property that looks like a positive ROI (using spreadsheets and advice from this forum). I plan to live/work in the smallest apartment as my primary residence, add a new business address, and plan to keep the rest rented out most of the time. (I already have 2 tenants lined up).
I am eligible for a VA loan but not sure whether I will use that or not.
Any insight on RE 401k or other advice related to the situation is invited!