All Forum Posts by: Andrew Savage

@David M. Correct. I'm wondering if there's any benefit of pulling a majority from 1 (namely 401k) for tax and fee purposes vs the others or if I should minimize the loan from my 401k at all costs. 

Another option I'm considering is pulling the max amount from every source aside from 401k and seeing if I can get a family/friend loan of roughly ~$12k.

Hi all,

Wondering if anyone has any advice for the best way of paying for a down payment for an out of state investment (not owner occupied).

I'm in contingency for a $200k property that I'll be putting 25% down on so I estimate close to $60k in upfront costs.

I have the following pools to choose from:

• $20k in savings
• $28k in a self-directed Roth IRA (18k of which is principal)
• and almost $100k in a company sponsored 401k

I've heard various things this year with regard to opportunities to pull from 401k without penalties, but I'm still unclear on all the ramifications. Similarly I've heard about advantages of funding investments through self-directed IRAs. 

Does anyone have any up to date advice on what would be most beneficial with the fewest penalties/issues involved?

Thanks!

Hi all.

I'm in a situation where an owner is willing to part with 2 side by side duplexes for $200k combined ($100k each).

My question is if there are any advantages (and disadvantages) to saying to owner that I want to buy Duplex 1 at $50k and Duplex 2 at $150k?

My thinking is Duplex 1 would provide me an ability to refinance right away and get a heap back on my down payment, and that would be great, but am I missing something here? 

Are there negatives in my going with this approach?

Hi all. First post here after lurking/networking behind the scenes for last 1+ years.

So here's the context of my question:

• My big ambitious goal is to have a property portfolio of $10,000/month in cash flow 4 years from now (I estimate that means control of ~40 units or acquiring 1 unit every 1.2 months or so)
• These would all be out of state buy & holds, where I'm obviously focussed on maximizing cash flow (SFH or MFH)
• I have a full time job that pays low 6 figures (so I have roughly ~20hrs/week to give to my investment goals) and no current rent/mortgage or other liabilities aside from feeding myself (I've done this intentionally for this 4 year sprint towards financial freedom).
• I have up to $50k to invest right now (and another $100k if I dip into 401k which I've contemplated doing), but as mentioned have a healthy savings rate given my circumstances
• My preferred route for now are properties that can be acquired at less than $150k per unit (so I've honed in on the usual suspects of states: WI, OH, IN, FL, MI etc) and from there I look for cities with more than 50,000 people that are either growing are have stable population, decent employment opportunities, relatively low crime, etc).
• I also have a bit of a desire to not go where I know everyone else has been circling for some time (Detroit, Cleveland/Akron, Dayton, etc)

So given all of this and my lofty goal of acquiring a property every 1.2 months (unless I'm thinking about this wrong), my question is this:

How many markets are too many to build and maintain a deal pipeline that helps me achieve this?

Ex: should I stick to 1 market of at least 250,000 people? Or would 5 markets of 50,000 people be an advisable alternative? Should I stick to 1 state? Is a total market focus of 250,000 people enough or should I be aiming for a cumulative group of markets representing 1 million people?

I'm sure theres no perfect formula to this, but in general I want to maximize the number of deals I can analyze that fit my criteria and make good offers on to satisfy the rate of property acquisition I'm aiming for over the next 4 years to achieve my big lofty goal of $10k in cash flow per month. 

Just wondering if people have thoughts on what's achievable before it's likely I'm stretching myself too thin. 

Appreciate any and all feedback!