All Forum Posts by: Bill W

Dennis good catch this was the only expense I would be responsible for.

Cap would be 2,400,000/173,500 =13.83 10yr avg principal pay down [67,200]+ annual cash flow $26,290/ $397500downpayment=23.5%annual return.

This will be my first foray into commercial RE.

Here are numbers:

A major retailer already on a 12yr triple net lease increasing every 5 yrs. Brand new building

Purchase price 2,400,000

Mortgage $2,002,500

$1,920,000 first @ 4.25% fixed for 7 yrs amortized over 20ys w/o escrows = $142,672

$82,500 second @5.5% fixed for 6 yrs= $4,538

Cash flow

yearly est $173,500 net income including $4,000 mgmt fee- $147,000 mortgage payments =$26290

Depreciation assuming $450,000 for land and component method $1,950,000/21yrs=$92,857 a yr

This property is Located in the second highest income area in the state at a great location with traffic light.

Any thoughts on this would be appreciated.

J Scott I am talking about the total income tax you are paying on the withdrawal. This is why I generally invest in Low turnover mutual funds in a taxable account then take my long term gains taxed at 15% and purchase re investments.

I live in the Ville also. You definately found the best place.

401 k loans are due as soon as you leave your job.

Would you borrow money at 40% to invest in real estate? That is what you are doing if you take early withdrawal from tax deferred retirement accounts. I love re investing which is why I do it.

Absolutely silly to take early withdrawal from retirement account! With penalty you are effectively borrowing money at 40-50% interest. I invest money in low turnover mutual funds this way most of the money grows tax defered. If I hold investment for 1 yr I pay capitail gains instead

Absolutely silly to take early withdrawal from retirement account! With penalty you are effectively borrowing money at 40-50% interest. I invest money in low turnover mutual funds this way most of the money grows tax deferred. If I hold investment for 1 yr I pay capital gains 15% instead of regular income tax which is much higher. When I find great RE deal I always put at least 25% or more down. Getting over leveraged is asking for sthf!

That are not in a war zone? My area 130K 3/2 house rents for 1000-1100 per month max.