All Forum Posts by: Audrey Ezeh

Nicely done!

Nicely done :) Do you mind sharing other numbers please...purchase price reno budget vs actual and profit? Thanks much and congrats!

I am generally not a fan of borrowing from 401k for any reason whatsoever and here are a few reasons why...
1: Taxes...you are volunteering to pay taxes twice on your money, generally not smart. When you set money aside in a 401k, it's pretax but when you borrow, you are paying back with after tax money (tax number one). When you retire and start drawing on your accumulated cash, you are taxed again (#2). There is no distinction between some of the $ that is pretax and some that is after tax.

2: If you leave your job or get fired, you have 60 days to pay it all back otherwise IRS views it as a taxable event as slaps you with ordinary income tax on all of it plus a 10% penalty for early withdrawal. So make sure you are on rock solid footing at work.

3: Your balance is extremely unlikely to go to zero (if investing in index funds) but we all know you can lose your shirt in this RE game!

4: Any money you withdraw is money that is not working for you, not compounding and at the end of the day you are really short changing yourself. 

I'll say if private funding is not for you then don't be in a hurry, save what you can and do it when you have enough accumulated. 

Whew...long post but hope it helps. 
P.S: I'm not a cpa or financial expert, just an average Jane still trying to figure out how to fund my first deal!

I use Google Keep. I created a folder called Real Estate, then sub folders titled 'Rentals,' 'Flipping,' ' General real estate,' etc. When i come across a gem i need to save, I simply copy link and paste in the appropriate folder. Simply clicking on the link takes me back to the article. Best of all, like everything Google, I can access it on any device or desktop!