All Forum Posts by: Tom Server

So not sure if this makes any differences for tax reason but

i was thinking of using my 401k money as a loan towards the down payment for a multifamily rental. I don't plan on opening a LLC .. Could i take any of the left over cashflow and transfer to my personal account and use it to pay the 401k loan back? I know the amount of cashflows isnt always going to be the same but i would if their is a positive, i would like to use the funds to pay back the loan

or 

could i set up a checking account with automatic payment to the 401k loan from the left over cashflow deposited from the leases ?

does it matter either way which way?

So, I kind of of got myself into a pickle. To shorten the story. I'm supposed to close on 2 properties this month.

one property is a rehab which wants cash. 105k the other property is a investment property. 25% down. 57k plus closing cost of 12k so 69k

So I will need about 175k for both properties.  I have 90k in cash in a savings account.  For the remaining I thought I could borrow 50% of my 401k to make up the differences of the 85k. but I found out I can only max out 50k so that leaves me a balance of 35k.  I'm not sure what the best approach for this is. my lender is away so I didn't want to bother him till he returns but can the closing close be rolled into the payment? That would free up 12k ... I have around 300k in a company stock account that does well with dividends, so don't really want to sell of shares.

Would taking a personal loan or doing a margin loan make sense? if the 12k can be rolled over. i would just need 23k if not would be the balance of 35k. 

 Which would work best for 1unit with 3 doors ?

Purchasing a rehab co-op unit.  Basically, needs everything new. it's around 850 sq ft in New Jersey.

Where should I start first??  This unit needs a whole new subfloor thru out the unit (3/4in plywood), a floor (FVP), new kitchen (cabinets and counters), and bathroom (Vanity Toilet, tub.   All appliances (washer dryer, refrigerator, dishwasher, stove), paint thru the unit

Do you think it's doable for under 15k for labor, material, appliances?  

so if someone on the HOA has a family member or friend interested in the property and even thought they aren't the highest.. they can sell it to the family member or friend ?

I know they have strict rules they follow.. I'm sure they must have some ethics rules they must follow?

Hello I have a question, if anyone might know. A rehab property in a co-op has been put up for sale. The co-op is the one selling it since the original owner didn't pay their taxes the co-op became owners. So now the property is listed. my realtor is the listing agent. The co-op HOA wanted "Highest and Best". There were 4 other offers. Since my realtor is the listing agent, I'm pretty sure I have the Highest offer, its all-cash offer, no inspection and I have same things in the contract as the other offers. so, my offer is more and i should be the winner?

They were supposed to have a response yesterday and now my realtor states the HOA is meeting up again to decide.

I have nothing against me, no criminal record, good credit, job, income, savings, single male, no kids... could the HOA decline my highest offer the property to whoever they choose?

I'm in the process of purchasing a triplex. Currently all 3 units are rented with tenants.  2 are month to month and the third  is up in September. Closing at the end of March..  I was thinking about possibly living in the third unit that is up in September. I currently live at my families house, so I do not have a main residences. The only issue is my job is 2 hours away from the triplex, by September I was looking to transfer and find another another job down where the triplex is

   When I apply for my loan would i be able to apply as owner occupied? Or I have to apply as a non owner occupied ?

Hey what are the rates are you seeing for investment mortgage rate for non owner occupied 

750 credit score 

@Andrew Postell im trying to understand what youre saying here

Also, keep in mind that if that 2nd loan is paid by your savings account, your checking account, a HELOC, another loan...it still means you are net negative on that property. So, if you make $200 in cashflow with the first mortgage, and then have to payback $300 for your 2nd loan, that means you are negative.

am i still in the negative? if I'm taking my own 401k money and using it as the down payment, and then just repaying myself back over 5 years?... i still will have 60k equity in the home, I'm paying myself 401k back to myself at 9% interest rate.. so I'm adding to my 401k.. and I'm making 4.60 interest from the money in my saving accounts that Ill be using to pay back the 401k loan..