reinvest within IRA income from rental property. possible?

the last week I have had two clients contact me about setting up a self directed IRA to invest in real-estate. I know folks can hold REITS in an IRA but what these folks are advising me is that they can take their existing IRAs and use the $ to purchase a home and then rent the home out and use the rental income to reinvest within the IRA. I have not been able to find guidance on this type investmenting in IRAs. Can you provide help here. Thanks



Yes you can own real estate in an IRA and the rent received goes into the IRA and could be reinvested. When dealing with real estate you have to be very careful. Please refer to your manual for more details. Tab 6 is prohibited transactions and tab 20 is real estate alternative investing.
Marvin



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