All Forum Posts by: CJ Witmer

Jason Krick all good stuff, and yes, I almost hated to mention the friendship cuz I knew folks would raise eyebrows on that. That's why I said "trust but verify". I told my wife that this is not our primary home, so it's more of a buy with your head instead of buy with the heart. I plan to take my Dad the first round who doesn't even know the guy and then also do a proper 3rd party home inspection as well to eliminate any friendship bias.

Good stuff guys! Thanks! I hope this can be a great start to a great lifestyle change. Nice thing is, I'll start with this one (assuming inspection doesn't turn up any deal-breakers) and hope to build up.

Matthew Koch trust me, I asked the same thing. I think I asked, "If this is such a cash cow, why sell?" He wants a quick sale and he knows I'm interested in real estate investing. He said if he tires to go to auction, he'd start at $65k and go up, but then he'd have to pay the auctioneer etc. He's looking to get away from tenants, pay off his primary home and start helping his kids with college. He's going to walk me through it soon and bring all the paperwork, etc. Trust me, I'm great friends, but in the back of my mind I was wondering why he'd sell at what seems like a good price. I still plan to do my due diligence. "Trust but verify"

No one??

Dustin Cecil I just had the exact same question. Mine is a Roth 401k so I need to look up the specifics on that. Can you share some details on your first deal?

Hey Matthew Koch I'm in Chambersburg and you're a bit ahead of me. I'm looking at an opportunity right now on a buy and hold duplex rental. It's a friend whose looking to cash out and just get away from it. He's got it listed for $95, but said he'll unload to me for $60. Got to get in and take a look. Did you get a home inspection first?

A long time friend is looking to cash out of his duplex rental property to get away from tenants and pay off his primary home. He has it on the market now for $95k. He said he'd sell to me for $60k. - Property grosses $15,400/yr - 2 units at $625 and $675/month - He has all receipts and is happy to share - Owner pays for heat, all other utilities paid for by tenants - Furnace is old and will soon need replaced - Electrical is older but he said "doesn't need attention immediately. - New warranty on roof transferable to me - Besides electric and furnace, he says it should be turn key - Could use some paint - I used the BP Rental Property Calculator and even figuring in $65k (instead of $60), lower rent, painting, lawn care, CapEx for furnace ($4k and redo electric at $8k) and a few other cushions, I still come up with about 13% ROI. What am I missing? Happy for any and all input! I had another friend who has 5 rental properties who looked at the website and said it'd be a good deal, even at $95. Then I told him I could get it for $60. He said if I don't buy it he will (although I know he wouldn't do that). I plan to go through the house whenever my friend is in town. What do you guys look for? I know nothing about electrical! Please go easy I'm a newbie, but this seems to have "deal" written all over it and I don't want to get stuck in analysis paralysis!

Mark Nolan it's actually a Roth 401k. I may just go to the bank and do a commercial. Looking more for input on the details to see if it's even worth pursuing. Thanks for your input!

Just listened to the BP podcast by Clayton Morris and he had a suggestion of borrowing out of your own 401k to buy properties. I'll give some numbers and an explanation of what I'm looking at for my first deal. A long time friend is looking to cash out of his duplex rental property to get away from tenants and pay off his primary home. He has it on the market now for $95k. He said he'd sell to me for $60k. - Property grosses $15,400/yr - 2 units at $625 and $675/month - He has all receipts and is happy to share - Owner pays for heat, all other utilities paid for by tenants - Furnace is old and will soon need replaced - Electrical is older but he said "doesn't need attention immediately. - New warranty on roof transferable to me - Besides electric and furnace, he says it should be turn key - Could use some paint - I used the BP Rental Property Calculator and even figuring in $65k (instead of $60), lower rent, painting, lawn care, CapEx for furnace ($4k and redo electric at $8k) and a few other cushions, I still come up with about 13% ROI. What am I missing? Happy for any and all input! I had another friend who has 5 rental properties who looked at the website and said it'd be a good deal, even at $95. Then I told him I could get it for $60. He said if I don't buy it he will (although I know he wouldn't do that). I plan to go through the house whenever my friend is in town. What do you guys look for? I know nothing about electrical! Please go easy I'm a newbie, but this seems to have "deal" written all over it and I don't want to get stuck in analysis paralysis! Should I take $26k out of my 401k and do the deal?

Hey Chris Jackson I can tell you from personal experience a 203k requires owner occupy. Did it for my own home. PM me and we can catch up sometime since we're close.