All Forum Posts by: Chuck Mak

My SD401K has owned a small apartment building for a couple of years.

In the new year, I plan to convert unused office space into a 2-bedroom rental unit and, in 2013 or 2014, put up a new small apt building on available land.

Being at a fairly low tax bracket, I plan to set up a Roth SD401K, move cash from regular SD401K over the course of a few years, pay the income tax for the conversion, and do the above 2 small projects under my Roth SD401K.

I assume it is not a problem that my regular SD401K and Roth SD401K each owns apt units, 4 and 4, of the same deeded property.

I set up a new LLC and new bank account for the Roth. Rent checks go to the respective bank accounts. No problems there?

Little tough splitting up the property value though.

Any advice is appreciated.

Bought a 8 unit apartment buidling a month ago. My lawyer, who owns the title company, goofed - property has environmental violations in 2009 totaling almost $3K. Worse is old unpaid fines put property in tax sale. Now to redeem out of tax sale costs another $8K.

My lawyer wrote a letter to seller's and asked for additional money for escrow. Seller told me he will pay a few days back but nothing yet.

My lawyer told me to sit tight and give it some time.

Anyone has any better advice? Isn't the title company responsible? They should have searched court documents and discovered that the property was in tax sale. What is my recourse besides waiting?