All Forum Posts by: Emily O'Neill

Dennis, thank you for the thorough reply! Yep I look at it this scenario like issuing a hard money loan to myself since I recoup the interest in the 401k. I ran the numbers on the deal knowing that I would break even on cash flow in the first year with minimal rent increases but significant cash flow in year 6 when the 401k loan is paid off. (Close on the payment calculation! It is $539.89 x 119 payments over five years. I guess it has to be fully paid back within 5 years from the distribution so you basically skip the first payment.)

I vote that @Dave Meyer does a quick upgrade to the rental property calculator to include scenarios with simultaneous loans! I'm sure he already has it programmed on an excel sheet somewhere. 

I recently purchased a duplex for $450,000 with 20% down. However I pulled $50,000 out of a 401k loan with a 10.5% interest rate to be part of the $90,000 down payment. The 10.5% interest on the 401k loan is likely higher than I would have been getting otherwise with no risk of downturn. How should I calculate the ROI considering I really only put $40,000 in the deal with out of pocket cash and my 401k loan is like a hard money loan on the side? Does Bigger Pockets have a calculator that can accommodate other loans that are part of a purchase transaction on top of the mortgage to calculate ROI? i.e. hard money, friend/family money, 401k loan. The 401k loan has a 5 year payback period so I'd really like to see the ROI with $40,000 down and 401k loan payments and mortgage payments running simultaneously.

How do I modify a residential lease to a create rent by the room leases for each occupant?