All Forum Posts by: Cam Jimmy

@Andrew Allen Yes that would be great, thank you

 @Dmitriy Fomichenko can you still get the same tax (or pre-tax) benefits on the entire $61,000 contributed in a year?

Has anyone out there actually invested any money with Lonestar Development partners in Austin, Texas? They have about 5-6 projects going on in the Austin area, and I'm curious if they are legit. I've tried calling 3 times but no one seems to answer the phone. If you have, what kind of returns were/are you getting?

Here is their website http://lonestardevelopmentpartners.com/

I know cash flow is King... but is it common to invest just for appreciation/loan pay down? Similar to how Amy got started in her first house? My area is so damn expensive and cash flow is ALMOST non existent... I'm talking real cash flow, after setting aside %5 for vacancy, %5 cap ex, and %5 repairs. I hear so many people I've talked to in my area say that they are cash flowing, and when they tell me their numbers they are actually negative cash flowing because they aren't setting any aside for those items I listed above. However they are gaining $5,000-$15000 a year on just loan pay down, not even considering future appreciation (our market is kind of sideways at the moment). So again, Is it normal to invest for loan pay down and appreciation while breaking even or being negative on cash flow? 

Hey Justin, thanks for the response! When I meant by borrowing 200k was to buy a fixer upper for cheap (from a whole saler, or off market deal), and use that 200k to basically buy and rehab the house. Then hopefully after 3-6 months of getting it into shape Refinancing the house using a conventional loan at 80% loan to value, and paying back the entire 401k loan. I understand the caveats, but using this "BRRR" method I'd only be using the 401k loan for short term. Trust me though, I'd rather find a 30k fixer upper, but those don't exist where I live lol.

Damn, I really thought I was on to something. Anyways, I know of some people in more expensive markets borrowing from their 401k to use just as the %25 down that is required for investment properties. I guess that is the strategy I should be looking at for my area. That or investing out of state... I live in AK and we are so damn far away from every where else. You guys know any other strategies using your 401k?

I've been aware of the strategy of using your 401k to borrow money from to buy real estate for some time now. You can borrow up to $50k and pay interest to yourself... got it...awesome. However, in my area the houses and multifamily buildings are not cheap. The average house probably costs 250-300k, and probably 400k+ for a duplex. SO here is my question, IF I had multiple 401k accounts (1 vanguard 401k, 1 fidelity account, etc..) could I borrow 50k from each one? That way if my and my wife each had 2 accounts, we could borrow 200k to purchase real estate with. Is this even possible, and if so has anyone ever done this? I hope I am on to something here!

@Kelly Conrad I'll tell you right now that it is not your qualification list. Your qualifications are good as is...in fact I'd add a credit score qualification too. The problem is the time of the year...Usually no one but bad tenants are looking for a place right now, because all of the responsible ones found rentals in spring/summer. You may have to just accept the BEST tenant out of all the ones that are applying right now, make them sign a 6 Mo lease, and try to re rent it in the spring. Or if the tenant you chose ends up being a good tenant... ask him to sign a year lease when the 6 mo run out.

Another possible reason... Lower turnover rate with duplexes V.S. 3-plex and 4-plex

@Samantha Klein Yes, that is an excellent point too! the quality of tenants seems a little better than that of a 4-plex. Thanks for the response!