All Forum Posts by: Alison Michel

@Mark S. , that clarifies. I figured somewhere the bank had to get paid for this loan. With that in mind, now I would need to find a property that has cash flow (for my buy and hold investment plan) on top of the interest I'm paying. I guess I would roll that into my debt service when I'm doing calculations?

Thanks again!

Alison

@Michael Lauther , thanks for the add'l info -- that is a consideration as the future is a bit up in the air. I'll talk with my accountant about what that could mean for us. Thanks again.

Thanks @Kevin C. , that sounds like a very clear-cut way to keep things organized and digitized. And @Justin S. I see what you mean -- classes as in classifications. Makes sense! Thanks!

Hi @Justin S. , thanks for your response. Can you explain a bit more about what you mean as far as setting up classes for each property? Not sure what that is. Thanks again!

Thanks so much, @Gautam Venkatesan and @Kyle J. - very helpful!

@Gautam Venkatesan - right, but my question was more to confirm that the actual interest I'm paying goes back into my very own 401k account and is basically like another contribution from me. Usually interest goes to the lender, and in this case I would think that would be my investment company, but I guess this is considering me to be my own lender.

So my next question would be if there are any add'l fees or charges. I will call my investment advisor but would be appreciative of any individual experiences as well.

Thanks!

@Michael Lauther , going back to your point about taking out a loan against a 401k if you're still with the employer (my situation), can you explain a bit more about how the interest goes back into the account? It seems too good to be true.

Thanks!

Thanks @Ming Lim ! Sophisticated or not, if it works -- that's what matters to me! What categories do you use in your shoeboxes? Do you only track receipts? What about tax records, inspection, utility bills...I'm not even sure what paperwork may possibly be out there but just throwing out some ideas.

Thanks again!

Might have just answered my own question --- or rather, found @J Scott 's excellent article that answered it:

"Expenses: Similar to income, details about expenses should come directly from the seller (last warning not to trust pro-forma data!) or the property management company currently running the property. This is another place where a building inspector could help warn you about any major repairs that may be coming due in the near future (new roof, new heating/AC, etc)" http://www.biggerpockets.com/renewsblog/2010/06/30/introduction-to-real-estate-analysis-investing/

J Scott, should I just email the seller and ask for this info? Or should I ask my agent to reach out?

Thanks for the add'l detail!

Alison

Thanks @J Scott and @Ming Lim! And for sure, will do due diligence if the 50% rule looks promising.