All Forum Posts by: Alexander Quan

@Thomas O. Thank you for your response

@Kevin S. Thank you Kevin for your input. I am just playing scenarios. We intend to occupy the home, just wanted to hear from people like yourself.

@Jaysen Medhurst this is a conventional loan. Plan is in 1-2 months once we get the HELOC we will recast and increase the equity to 25%.

Hi BP Community,

So my wife and I are in escrow for our first duplex purchase.

The financing option was:

1) 5% owner occupied

2) 25% investment purchase with 5% from us

and were going to get the remaining 20% down from mother-in-law HELOC. Since we did not have the HELOC process started and escrow opened...we had to decide what we were going to do or else we would lose the deal.

So as of now, we are doing 5% down owner occupied. I know that you need to technically live at the property for 1 year minimum before you can turn it into a rental property. However, what if you rent the two units out right away? What is the penalty?

The ultimate plan is to get the HELOC and Increase the equity to 25% to make it an investment property but that will take an additional 45 days. I do not want to keep it vacant for 45 days.

Should I worry?

Thank for your help and any advice would be appreciated.

@Logan Allec & @Brian Eastman I thank you for the great input you both have given me. You both are correct in that there was missing info, as the 401k holder is my fiance as she was the one that has recently switched companies. I am the  agent. Looks like since she does not do part time work and has agreed to let me figure out what is the best solution for us collectively, it seems according to @George Blower that we should look into self-directed IRA.

Brian Eastman - thank you for pointing out to me regarding all these options in that it is still for retirement. I really need to understand it more. I am assuming that if we use the money say from Self-directed IRA then the money that is used/made must go back to the self-directed IRA?

Let's say we go the self-directed IRA route. With her new employer at CVS, would you opt-in to contributing max to 401k or should we put the money into self-directed IRA or just take the money in the bi-weekly paycheck so we can use the money now? I cannot thank you enough for your time and assistance

Hi BP Community!
I wanted to run this buy you savvy investors on what you would do if you were given our situation. So, I have a 401k from previous company Walgreens and now I work at CVS pharmacy. I am going to be allowed to roll over 401k starting April 1 and begin max contribution. 

So, our goal is real estate investing in buy &hold/wholesaling and flipping (already in the field). Our tax person mentioned that if we move it into a solo 401k then i will be taxed significantly because it will bump me up to a new tax bracket. He said it is better to just roll it over to the new 401k provider and contribute max because then that money from each paycheck will not be taxed as well. What is holding me back from being happy with this strategy is that I do not want to wait until retirement age to be able to withdraw these funds. I would like to use them asap and start acquiring properties.

HERE IS MY QUESTION: is it wise to take the loss and move it to a solo 401k so we can use it to invest or just roll it over and not make it so complicated?

Any help would be appreciated and hope this all made sense. 

@Carlos Altamirano what deals are working on at the moment?

@Carlos Altamirano thank you for your response! We walked away from the deal because the sellers were getting greedy. Thank goodness because it wasn't a good deal from what I gathered within the BP community. 

You mention short term rentals, is that just going month to month? Or Airbnb? Or what exactly?

I have a client that has done and doing another congregate living health facility. Have you heard of this? http://clhfhomes.com/

Keep in touch

@Joseph Brown thank you for your input and insight! so I just want to make sure I understand, you would want the property to be reconstructed to its original state before purchase? He would have done that if we wanted. 

Then would it be wise to get permits and add two more units in the future with all the necessary permits? My fiancé and I were thinking this is the best way but more costly.

@Robert E Bogino the guesstimate is really due to both properties being high standard finishes but downstairs unit has more amenities like higher quality stove, wet bar, tv and surrounds system this is because the owner was living there and will be leaving all the stuff. Based on lease agreements, I see upstairs unit minimum $1800/m and downstairs minimum $2000/m

@Joel Owens thank you so much on your insight and others, we have decided that this is not a good deal. I need to work on studying the numbers better. good thing we did not jump the gun.

@Khoa Ha yes, I sell homes without permits all the time. Guess it was just harder because I was planning to purchase owner occupied but not actually live there. And my first buy. I need to take out emotion and keep it business. Thanks for your feedback. Which area do you work from? I'm with Homeary Real Estate. Let's connect