Airbnb is an online marketplace and hospitality service. More and more people are taking advantage of lodging with Airbnb instead of traditional hotels, so does that mean that the time has come to invest in an Airbnb property?
Things to Know Before You Invest in Airbnb
- You cannot use the property for personal reasons.
- All expenses associated with the investment must be paid using the funds in your IRA account. All revenue must go back to the IRA account. All property expenses including, furniture, home decor, taxes, insurance, repairs, must be paid from funds in your Self Directed IRA.
- You cannot perform physical work on the property.
- The investment is made by the IRA – not you. Remember to title the investment correctly.
Consider allocation of your commitment, cost, and time.
- The purchase should not constitute a prohibited transaction.
An IRA Club Self Directed IRA may make almost any investment for your future – including an Airbnb property. The IRA Club provides our members with a no cost review to help you avoid making one of the few prohibited transactions.