All Forum Posts by: Brian Baker

@Brian Eastman I know solo 401k and employer 401k's are different, but that's about the extent of my knowledge. 

Is it possible to take out a loan against a solo 401k the same as you would with an employer type 401k, and use that loan to do the OP's cabin idea? The profits could be used to pay back the loan at whatever the appropriate interest rate is and it would be something similar to dumping more money in to the 401k. 

I'm not sure if the OP's goal was to use existing funds to develop land or to grow the solo 401k. Using the Solo 401k to develop the land might be a burden if he planned to DIY anything. If I understand correctly, if the property was owned by the 401k, the OP could't legally develop or manage the property personally. With the idea of simply borrowing money against the plan, the cabins would then be under the ownership of the OP so it wouldn't fall under the solo 401k rules of separation. 

Just curious, thanks.

I just bought a property that I could afford. It was in need of a little fixing up but I had it rented in a couple months of buying. Seguin has some good demographics for a steady rental market. I saw a lot of development going on in San Antonio, San Marcos, and Austin and Seguin is right in the middle. I've owned the place for a year and haven't had anything but monthly deposits from the property management company.

However, more recently there has been an influx of investors and flippers in the area and the prices have skyrocketed. I doubt there is much value for money left on the older properties. Also, I'm seeing several new developments that are having trouble selling units. 

If you're going to do it. . .

Coin washers with a small 5-7 gallon 110v water heater will make everything run from the single existing water line. If you have gas in the home, it might save you on trying to run 220v to the dryers. As for the plumbing, it sounds like you need get 3- more quotes. If you want to do it the right way, which you do, add the 5th meter and run the electrical to it's own panel. Remember, improvements like this can be depreciated out on their own. Not to mention the increase in value with forced appreciation and cashflow from raising rents after adding an amenity. Also, I'd suggest getting quotes from a general contractor since the job requires multiple trades. 

There are a couple companies that use an app based system. All the transactions take place over the app between the company and the tenant. They buy credits and then their device sends a signal to a device you install in the laundry machine to run. It removes the need for any form of cash. Add that to a camera system for vandalism and you're probably set. I haven't used them but I've read good things and am considering them very seriously for my own laundry room.

https://shop.payrange.com/indu...

I have a speed queen coin operated washer, but couldn't find a dryer that was affordable. I found this add-on box that converts your standard laundry machine into a coin-op machine. They can also be set up to use an app based pay system in addition to coins. If the coin-op machines are lucrative enough, I might add in the app based pay system to limit the opportunities for theft and the need for tenants to carry around coins. 

Details on the coin box are in the video:  

It took a while for me to understand what I was even shopping for. Once I understood that, it made things easier. What might look like a junk market to one investor might be ideal to another. Converse has a ton of old people with really neglected houses. If you are willing to knock on doors and use the BRRRR method, you might find a lot more deals. If you want turnkey, probably not.

Reading a ton, evaluating everything I was remotely interested in, and writing down my short and long term goals were the biggest initial steps for my start. Eventually, I found a realtor that was willing to write a million offensively-low-ball offers until one bit. It might be easier now with houses sitting on the market for longer. 

I'll suggest option three along the lines of what @Josh Young suggested. In Texas, you can't take out a Home Equity Line of Credit (HELOC) on a property that isn't your primary home. Think of it as a second position mortgage that you can take out and pay back as needed. So, you could take a HELOC out on your current house so you don't mess with the current 2.5% mortgage interest rate. It's almost the same as selling the house outright because you'd only get a percentage of the equity after taxes and fees anyway. Best part is, you don't get taxed on debt like you would the cash from a sale. Use that money as a down payment your next home, or even better, another investment property. HELOCs are good for 10 years, so use the cashflow to help pay it off faster and repeat the process.

Also, make sure you have the homestead exemption and consider challenging your property taxes to lower the mortgage payment. It might give a little breathing room and an increase to your cashflow. A good realtor can pull comps on houses in your area and make sure you're not being overcharged by the city/county/state. House prices were crazy high in the San Antonio area when they did tax assessments and the market has cooled off. There is a good chance you're being overcharged. Shopping for less expensive homeowners insurance policy is also a good place to trim the cost of your mortgage and increase cashflow. A 401k loan is also a good source for downpayment money if you have the option. 

I work with Vantage realty out of Seguin. Sandy has been managing my property for over a year now and I have zero complaints. 

I have a 4 unit in the 78210 area code. I currently have a property management company that is not cutting it. I am going to replace them but I want to get a good property management company lined to smooth the transition. Who are you using?

I could write volumes about the issues I've been having with this company. I've waited about 6 months too long to finally do this. The bottom line is, I have to get a property manager who I can trust to fill this property with great tenants. I have an amazing property manager for my other property, but she is out in Seguin and I'm nervous about using someone who isn't in the area. If you have thoughts on this please share as well. 

Welcome. I live in the area. I travel a lot for work, but I'm down to help whenever I'm in town. I did a BRRRR last year and have a lot of notes.