Originally Posted by
Gunfighter
That is nearly an exact match of my first rental property purchase. It's amazing how good the numbers really are over decade or more. Splitting investments evenly between the DC plan and real estate for the last decade has created a buy and hold portfolio with more equity than the retirement plan. The portfolio also produces monthly cash flow that the retirement plan does not. I'm a huge fan of buy and hold real estate as part of a retirement plan.
… and I would add, for a Delta pilot there are many advantages to setting this up in a self-directed IRA.
In 2015 my sort term gains were taxed at 51% after AMT, State and investment taxes specific to 1099 income from the company that runs the properties for me.
The real estate business was only ever intended to be a supplement to retirement. It makes sense to roll all of this forward in the IRA and tax it when you retire.