All expenses and revenue related to your investment must be made through and delivered to your IRA custodian account. When you are ready to sell your property, proceeds from the sale remain in your IRA. This means that taxes on profits and appreciation are deferred to the future when you start drawing funds from your IRA.
One limitation to using a self-directed IRA real estate purchase for a rental property is that you cannot manage the property yourself. You will need to hire a professional such as Real Property Management Wake County to do so. You will pay a fee to your IRA custodian which might involve up-front fees or on-going maintenance fees. Depending on the value of your IRA portfolio, these fees can range from a couple hundred dollars a year to a couple thousand. The marketplace is competitive, so you will want to compare multiple custodians for their credentials, fees, and service levels.
If you seek to build a real estate investment portfolio, your IRA might provide the funds you need to do so. Check your balance and consider how self-directed real estate could fit within your entire investment portfolio. If it makes sense, find the right IRA custodian, and make it happen. You will thank yourself in retirement for investing in one of the most stable investments available – real estate.