Can I use my IRA to buy an apartment building? Who collects the rent checks and how do I pay for ongoing maintenance and repairs of the building?
Yes, you could use IRA funds to invest in an income producing apartment building. When the IRA directly owns the income producing real estate rent checks would be made out to the IRA custodian. The IRA account owner should consider hiring a property manager to manage the real estate including collecting rent and handling maintenance issues. Also consider consulting with an attorney to discuss liability issues and options for creating some level of liability protection around you and your IRAs investment.
