All Forum Posts by: Aaron Simpkins

as long as you don't waive your right to inspection, you have good knowledge of the market you have time to save yourself from a bad/scary investment.  also, find a way to evaluate quickly and accurately.  If your initial glance at the numbers meets your rule of thumb first, then you should be able to log onto here and check your goal numbers with one of the calculators very quickly.  The rest should be covered after offer by your ground team in the area such as inspections, appraisals, contractors etc.

What Cassi said.  You have to know your market well.  

My most recent purchase is a duplex in great schools and a hot area.  I saw it within the first 20 minutes of going on market, it was being sold as is.  I worked the numbers in about 7 minutes just to confirm my rule of thumb, called the listing agent to confirm if they were currently leased at what I thought they should bring for that market, sent a full price offer without waiving my right to inspection.  Found out that evening it had multiple offers and it went to a "Highest and Best".  I upped my offer by 3k, wrote a personal letter with a family photo, (did this because when speaking to the listing agent I found out the tenants cried when they learned the current owners were selling, so I knew emotion might be in play and wanted to let them know we are a young local family that care about our tenants).  Low and behold, we got the deal and we were NOT the highest offer.  Inspection turned out great, I got a nice little duplex with long term tenants in it who do take pride in ownership.  All of this from knowing the market well enough to realize we had to move quickly.

Thanks a lot guys, I really appreciate everything. This gives me a lot to think about going forward. As I said, this is from a former employer so it's just sitting there while my other Roth 401k with my current employer is actively gaining. As opposed to combining I would rather keep separate and use this to invest further. I may withdraw my Roth contribution that has already been taxed for a downpayment on a new property then roll the remaining to a self-directed Roth IRA for further retirement investing. Everyone on here has been great. I can't say enough how much I appreciate all of the feedback.

BP CPA's, I have a question. I have a fully vested Roth 401K from a place I no longer work at. I want to leverage this Roth into my real estate investments but I am still unsure of how to fully take advantage of that. I do have the option to cash out but that is a 10% fee and will report as taxable income. I have thought about a self-directed IRA or even opening a 401(a) under my LLC. What are your opinions or experiences that I can learn from before making a decision?

I second what Alyssa is saying above.  My very young relationship with Tony and company at T&J has been great.

so this is an off the market deal, as it stands today the market value comps are at $130k.  The school district is excellent and the rental comps are fair on par with comps in the area as pulled from my realtor.  I put 1k in repairs anyways knowing this house actually doesnt require any repairs, it would just be cosmetic but doesnt have to be done.  

Guys, this one misses the mark on my goal of $200 per door, barely, and I'm missing the cash on cash ROI with this house as well.  I really want to be over 12% but I don't think I can get it for any lower. There will be instant equity in the home and it's in nice condition however, it's a little dated.  What are your thoughts?  In this area I really do not want to eclipse the $1200 a month rental price if I were to remodel it.

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*This link comes directly from our calculators, based on information input by the member who posted.

Nice to see anytime a fellow Okie joins.  Welcome Taylor!

Thanks Jon, I actually fat fingered that 10% down so there's a correction I need to make.  Also, I believe part of the reason why this has been sitting is one, the lady wants $12,000 earnest money and zero showings allowed until AFTER the contract is accepted.  Also, I finally was able to get her to release the rents to me and she is only leasing these at $850.  For a 3bd per unit duplex in the area I think that's undervalued and it should be at least $950.  One final thing, she said she will only look at full price offers.  I think I'm going to have to pass on this one at the moment until she want's to budge a little more or be more willing to negotiate.  If I do full price I will definitely have to think about going in with a partner.  There are other properties available that leave a little more meat on the bone at the moment.

Can you guys give me a "sanity" check on this report?  I ran it twice, tried to use some conservative numbers.  Anyways, I appreciate any feedback. 

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*This link comes directly from our calculators, based on information input by the member who posted.