Investing in Airbnbs has become an increasingly popular way for property owners to generate additional income. With the right property and strategy, a short-term rental can yield double or triple the cash flow of a traditional long-term rental. By furnishing a property, adding guest amenities, and listing it on platforms like Airbnb or VRBO, even average investors can transform into boutique hoteliers.

But is it possible to hold real estate in an IRA or 401(k) and operate an Airbnb within these tax-advantaged accounts without incurring penalties, fees, or taxes? Let’s break it down.

Basics of Real Estate Investing with an IRA or 401(k)

Self-Directed IRAs and Solo 401(k)s

While most IRAs and 401(k)s are managed by financial advisors who might discourage real estate investments, the tax code permits holding real estate in these accounts. This is where self-directed IRAs and solo 401(k)s come in, allowing for greater flexibility.

As Maggie Polisano, founder of CamaPlan LLC, explains:

“They tell you it’s not possible because they can’t earn commissions on real estate. But the truth is, the tax code allows it.”

If you have funds in a traditional IRA or 401(k), you can transfer them to a self-directed IRA or solo 401(k) without incurring penalties, as long as you stay within the same account type (e.g., Roth to Roth). Solo 401(k)s, however, are typically available only if you’ve left your employer or have a business that qualifies for such a plan.

Be Aware of UBTI (Unrelated Business Taxable Income)

Investors using retirement accounts for real estate must navigate Unrelated Business Taxable Income (UBTI), a tax on income the IRS considers unrelated to retirement savings. This can significantly impact the profitability of an Airbnb.

“UBTI is the ‘gotcha clause,’” warns Polisano. “It can defeat the tax-advantaged purpose of an IRA or 401(k) if you’re not careful.”

Key Rules for Investing in Real Estate with an IRA or 401(k)

1. You Can’t Live in the Property

Neither you nor your family members can use the property. This includes parents, siblings, children, or grandchildren. Even partial ownership through your IRA prohibits personal use.

2. You Must Be a Passive Investor

Retirement account rules require a hands-off approach. This means no DIY repairs, tenant interactions, or direct involvement in operations. Hiring a professional property manager is essential.

3. All Transactions Must Stay Within the IRA or 401(k)

- The purchase price, closing costs, and ongoing expenses (e.g., property taxes, insurance, and repairs) must be paid entirely from the IRA or 401(k).

- Income generated by the property must remain in the account.

- Out-of-pocket contributions can trigger taxes and penalties.

Tax Advantages of Real Estate in an IRA or 401(k)

While real estate investments typically offer significant tax benefits, such as depreciation and capital gains exclusions, these advantages don’t apply within a retirement account. The reason? Income within an IRA or 401(k) is already tax-sheltered.

“You have to weigh whether the potential profitability of an Airbnb offsets the lack of real estate-specific tax benefits,” Polisano notes.

Financing Challenges: Using Mortgages

Obtaining a mortgage for a property held in an IRA or 401(k) can be tricky. Most lenders prefer to work with individuals rather than retirement accounts, and financing can also trigger UBTI.

Creative strategies, like purchasing properties “subject-to” existing mortgages or through foreclosure, might offer alternatives, but such approaches require expert legal and tax guidance.

Operating an Airbnb in Your IRA or 401(k): Dos and Don’ts

Repairs and Decoration

You can select contractors, handymen, and designers, but you cannot perform repairs or decorate the property yourself. This ensures compliance with passive investment rules.

Liability Protection

To minimize risk, consider holding the property through an LLC owned by your IRA or 401(k). Any liability insurance premiums must be paid from within the retirement account.

Guest Interactions

Avoid direct involvement in hosting, such as communicating with guests or providing personal touches. Using an LLC or professional property manager can help maintain compliance.

Hiring a Property Manager

Engaging a professional Airbnb manager ensures that the property operates hands-off, meeting IRS requirements and avoiding UBTI.

“It’s an additional expense, but it’s far less costly than a UBTI bill,” Polisano emphasizes.

CamaPlan LLC: Your Self-Directed IRA Partner

CamaPlan LLC specializes in self-directed IRA and solo 401(k) administration, enabling investors to diversify their retirement portfolios with alternative assets like real estate, private lending, and more. Based in Ambler, PA, and serving clients nationwide, CamaPlan empowers investors to take control of their financial futures. Visit www.camaplan.com to learn more.

Disclaimer: The information provided here is not intended as tax, legal, or financial advice. Always consult with qualified professionals before making investment decisions. https://bostonrealestateinvestorsassociation.com/airbnb-investing-with-an-ira-or-401k/

Hi Everyone, We just launched a FREE 7-part Fair Housing training series featuring Zona Law Attorney Mark Zinman. Fair Housing education is the first line of defense in avoiding costly lawsuits down the road. For more insights, be sure to check out episode 130 of the Rent Perfect podcast! Give your members access to this FREE 7-part Fair Housing training series now! They will thank you!

LISTEN TO PODCAST FAIR HOUSING TRAININGFAIR HOUSING TRAINING HERE https://bostonrealestateinvestorsassociation.com/free-7-part-fair-housing-training-series/

As we look ahead to 2025, home design is taking on a fresh perspective, blending timeless classics with personal touches, nostalgia, and the quiet elegance of understated luxury. The year's biggest trends prioritize beauty, functionality, and sustainability.

“The design shift is toward a more comfortable and tailored space featuring luxurious pieces with nostalgic accents. Expect bold colors, vintage elements, and smart home technologies that offer discreet convenience,” — Sarah Fishburne, Director of Trend & Design, The Home Depot.

Here’s an exclusive look at four key design trends that will define 2025. Whether you’re taking on a bold DIY project or embarking on a complete home renovation, there’s a style to fit every personality.

1. Classic Elegance

This timeless trend celebrates the beauty of enduring design. Classic Elegance is all about high-quality decor and thoughtful investments that last a lifetime. Key features include modernized artisanal craftsmanship, bold pops of color, and statement moulding that adds texture and depth to walls. Formal dining rooms are back, supporting the shift from open floor plans to more intimate, connected spaces.

Design Highlights:

- Decorative wall moulding for elevated style

- Warm, bold color schemes to create depth and drama

- Monochromatic "color drenching" to add visual impact

Sarah’s Pro Tip: Focus on personalized decor that reflects your unique taste. Add rich textures, tactile fabrics, and natural wood finishes. Mix in warm or dark stone elements to create depth.

Shop This Look:

- Abruzzo Freestanding Soaking Bathtub

- Home Decorators Collection Medallion Blue Indoor Area Rug

- Ivy Hill Tile Marmo Black Porcelain Floor & Wall Tile

- Jennifer Taylor Round Arm Velvet Curved 3-Seater Sofa (Burgundy)

- Lazzara Baylor Dark Blue Velvet Tufted Accent Chair

2. Modern Embrace

Modern Embrace introduces a softer, more natural aesthetic. While retaining the timeless appeal of clean lines, this trend features organic shapes, soft curves, and globally inspired decor. Thick trim, wall paneling, and herringbone floors add depth, while artisanal furniture pieces lend character.

Design Highlights:

- Natural, organic shapes and fluid forms

- Artisanal, hand-crafted decor and furniture

- Globally inspired textiles and accessories

Sarah’s Pro Tip: Elevate your space with soft textures and live greenery. For a natural feel, lean into color palettes with warm browns, olive greens, terra cottas, and complex whites.

Shop This Look:

- StyleWell Goodwin Faux Leather Sofa (Caramel Brown)

- Nathan James Percy 2-Light Pendant Light (Black/Vintage Brass)

- Harper & Bright Designs Barrel Accent Chair (Tan/Burnt Orange)

- Glacier Bay Ryden Bathroom Faucet (Brushed Gold)

3. Cozy Cottage

This modern take on the traditional farmhouse style emphasizes warmth, casual elegance, and thoughtful layering. Inspired by Shaker, prairie, and country aesthetics, Cozy Cottage embraces craftsmanship, tactile design, and a sense of nostalgia. Its palette blends earthy neutrals with soft, atmospheric hues.

Design Highlights:

- Hand-crafted, artisanal design with a fresh twist

- Soft, grounding natural tones with layered textures

- Collectible accents that add character to the space

Sarah’s Pro Tip: Combine patterns like florals, bold stripes, and modern geometrics. Incorporate natural materials like stone, brick, and wood to bring an organic warmth to your space.

Shop This Look:

- Home Decorators Collection Brass Oversized Pendant Light

- Raleigh Farmhouse Fringed Jute Area Rug (Tan)

- Glacier Bay Bathroom Faucet (Brushed Nickel)

- Ivy Hill Thistle White Polished Marble Mosaic Tile

- Progress Lighting Brookside Outdoor Wall Lantern (Solid Copper)

4. Vintage Deluxe

For those who love a blend of luxury and history, Vintage Deluxe offers an elevated take on classic design. It features quiet luxury — a move away from loud maximalism — and embraces timeless opulence with reimagined vintage fixtures. Statement pieces and furniture with exposed screws, rivets, and vintage-inspired finishes add depth and intrigue.

Design Highlights:

- Opulent, classic furniture with traditional shapes

- Dark and burl wood finishes that age gracefully

- Metal accents with exposed details (flathead screws, rivets, etc.)

Sarah’s Pro Tip: Focus on luxurious, rich materials like velvet upholstery and fine wood. Opt for large, overscale furniture pieces with traditional lines that can evolve over time. Color trends for this look include mineral tones, sepia hues, and muted pastels.

Shop This Look:

- Delta Albion 2-Toned Bathroom Faucet

- Sumner Street Satin Brass Cabinet Knob

- StyleWell Goodwin Faux Leather Sofa (Navy)

- James Martin Vanities Olena Quartz Top Bath Vanity

- StyleWell Blairmore Verdite Green Velvet Accent Chair

2025 Paint & Stain Trends

In 2025, color takes center stage. Rich, warm, and natural-inspired palettes will be key, adding depth and personality to spaces. Look for hues inspired by nature, like deep browns, olive greens, and terra cottas, along with sophisticated pastels and earthy neutrals. These colors bring warmth and familiarity, perfectly complementing the year’s top design trends.

Shop the Look

Featured Products:

- Freestanding Bathtubs: Abruzzo Freestanding Soaking Bathtub

- Rugs: HDC Medallion Blue Area Rug, Raleigh Farmhouse Fringed Jute Rug

- Dining Tables: HDC Walnut Brown Round Pedestal Dining Table

- Sofas & Chairs: Jennifer Taylor Round Arm Velvet 3-Seater Sofa (Burgundy), StyleWell Goodwin Faux Leather Sofa (Caramel Brown)

- Bathroom Vanities: HDC Aberdeen Bath Vanity with Carrara Marble Top

- Lighting: Brass Oversized Pendant Light, Progress Lighting Outdoor Lantern (Solid Copper)

- Accent Chairs: Lazzara Dark Blue Velvet Tufted Chair, Harper & Bright Designs Barrel Accent Chair

Source: https://corporate.homedepot.com/news/products/home-design-trends-shaping-2025-sarah-fishburne https://bostonrealestateinvestorsassociation.com/?p=12735

There’s something strangely captivating about abandoned properties. The eerie stillness, the remnants of grand ambitions, and the stories they tell all contribute to a fascination that draws many, including myself, into this peculiar rabbit hole. It all started when I stumbled across a YouTube video by Bright Sun Films about Peter Grant’s mansion in Ontario, Canada. The narrative of a wealthy timber magnate unable to fulfill his dream captivated me. It’s a story that echoes across many abandoned properties worldwide.

My curiosity deepened when I watched a video on the abandoned Power Plant in South Boston — a place I had driven past countless times when I lived nearby. The familiarity of the location combined with its mystery made the experience even more compelling. So, when an article on Canada’s most incredible abandoned houses appeared in my feed, I had to click.

One property, in particular, stood out: the Crypto King Mansion. Despite its current state of disrepair, with broken windows and leaking roofs, the house's valuation was a staggering $3.1 million. The idea that a house in such poor condition could be worth so much was mind-boggling. It raised a question that has puzzled me for years: Why don’t owners of such properties sell them quickly to companies like Cash Offers Ontario? Selling for cash and moving on seems far more practical than letting a valuable property deteriorate.

This led me to explore Ontario’s real estate market. Was it like ours? Were home prices dropping, or did they also experience a COVID-induced surge like we did in the U.S.? I dug into a blog by Norada Real Estate Investments, which provided some fascinating insights. As of August, Ontario’s home prices had increased 2.2% year-over-year, with an average sale price of nearly $838,000. Meanwhile, Toronto saw a 5% decline in prices, with an average sale price slightly below $1.1 million. The data revealed that Ontario’s market was stabilizing after a period of wild volatility, much like what we’ve seen in the U.S.

What’s driving these prices? Government initiatives aim to increase housing supply amid a growing demand. Sound familiar? It’s the same story we’re living through here. Over the past decade, home prices in Ontario have doubled. While the region's population grew by 18.4%, home prices skyrocketed 101.7%. This disparity between population growth and housing price inflation mirrors the affordability crisis seen across the United States.

Ontario's challenges are strikingly similar to our own. Housing has become unaffordable for many, whether renting or buying. Builders are hesitant to start new projects due to profitability concerns. It’s a supply-and-demand issue, plain and simple. Demand exists, but supply is limited, and the cost of construction keeps developers from building more affordable housing.

The solution? It lies in increasing supply. One approach could be to streamline construction approvals for homes priced below 50% of an area’s average home price. For example, if the average price in a town is $800,000, red tape could be reduced for developments with homes priced at $400,000 or below. Additionally, government-backed financing programs could incentivize builders to create affordable housing. Another powerful strategy would be tax incentives for developers constructing below-market-rate homes.

If we truly want to solve the housing crisis, we might need to address the broader system. A radical but potentially transformative idea would be to phase out government-sponsored entities like Fannie Mae and Freddie Mac, leaving the VA loan program intact as the sole low-down-payment option. Such a shift would have to be done gradually to avoid a market collapse, but it could reduce reliance on government-backed mortgages, stabilize housing prices, and boost affordability.

At the end of the day, if a few people get richer in the process but more affordable housing is built, who cares? The bigger win is a future where housing is accessible for everyone. https://bostonrealestateinvestorsassociation.com/exploring-the-fascination-with-abandoned-properties/

From Alaska’s Glaciers to Norwegian Fjords: Unforgettable Cruise Destinations
Traveling by sea is an incomparable experience. It’s the epitome of relaxation and enjoyment, filled with captivating sights, tranquil atmospheres, and luxury services; it is a gateway to the extraordinary. Its magic lies in the gentle rocking of the waves, the charm of living at sea, and the exposure to Earth’s marvelous wonders. Among the diverse cruise options, voyages to Alaska’s glaciers and Norwegian fjords are ultimate bucket list items. These destinations stun visitors with their beauty, leaving an indelible print on their memory.
Experience Alaska’s Glaciers
Alaska is often described as the ‘Last Frontier’. Its remote, untouched terrain is both tranquil and visually stunning. Cruising through its majestic glaciers provides a striking sight to behold. Visitors can absorb the power and beauty of these icy giants while listening to the thunderous echo of ‘calving’ – the moment when chunks of ice break off and crash into the sea. Remember to pack warm clothes and binoculars and don’t forget to secure your trip with UHC SafeTrip insurance, which will provide invaluable support in case of any unforeseen incidents.

Alaska’s wildlife, visible from the ship, is another highlight. Sightings of bears, bald eagles, harbor seals, and humpback whales are quite common. The landscapes you see while on board will be unlike any other; snow-capped mountains, vast forests and waterfront villages. For adventure seekers, there are land tours to Denali National Park and trips to sled-dog kennels.
Voyage to Norwegian Fjords
Norway, reminiscent of a fairytale setting, is known for its fjords — narrow deep inlets of sea between high cliffs, shaped by glacial activity. A cruise through its fjords will expose you to skies decorated with the dancing hues of the Northern Lights and an unparalleled view of Scandinavia’s raw wilderness.

Visitors will marvel at this idyllic landscape filled with deep blue waters framed by towering snow-blanketed mountains. Each fjord houses its own unique scenery of quaint villages, cascading waterfalls, and vibrant wildlife. In Flam, for instance, tourists can take a train ride on what’s often called the ‘world’s most beautiful train journey’, and in Bergen, the authentic fish market and the scenic views from Mount Floyen are must-sees.

The unforgettable fjord cruise can further be paired with a journey to the truly unique stops like the Viking-age stave churches found in rural Norway or a brisk hike to Pulpit Rock, an unmatched viewing platform towering 604 meters above Lysefjord.
Travel Tips for a Secure Voyage
Thorough planning and preparation are integral to any trip, especially for cruises where one spends several days or even weeks at sea. Packing should be done with the type of cruise and weather in mind. Travel insurance like UHC SafeTrip insurance, is a prudent step in ensuring protection against potential health scares or unexpected disruptions during your trip.

Integrating elements like guided tours on land further enriches your voyage. They allow you to explore prime attractions of port cities and soak in the local culture. There’s a certain allure to befriending locals and tasting regional cuisines.
Conclusion
A sea voyage through Alaska’s glaciers and Norway’s fjords offers a transcendental experience. The sweeping panoramas, rare wildlife, and captivating cultures encountered on these exquisite cruises provide enough memories to last a lifetime. Embrace the tranquil ambiances, relish the enriching excursions, and make unforgettable memories!

Every day, every shore, every adventure holds something new. It is this constant sense of discovery that transforms a simple journey into an extraordinary experience. From the astounding glaciers of Alaska to the ethereal fjords of Norway, cruising goes beyond visiting; it is about absorbing the mesmerizing essence of our beautiful planet

[ https://investingtravels.com/editors-choice-travel/unforgettable-cruise-destinations/

Price: $20.00(as of Nov 29,2024 18:55:15 UTC - Details)

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Rather than view the lease as a "throw away" part of being a landlord, Real Estate Attorney Mark Zinman teaches us why this is the most important part of any rental transaction. Discover legal ways to let the lease documents be the "bad guy," give you the power, and let you enjoy the fruits of your investment.

Rent Perfect helps landlords onboard tenants with ease from the initial background check to leasing and payment collection. You can learn more by visiting www.rentperfect.com or calling 1-877-922-2547. https://bostonrealestateinvestorsassociation.com/ep-3-a-powerful-lease-is-a-landlords-best-friend-w-mark-zinman/