All Forum Posts by: Cody Stone

Welcome Charlie! If you haven't yet made it to any REIAs I highly recommend it. I kept asking myself why would successful investors in my area want to help educate me? Although there may be folks out there wanting to take advantage of newbies, that has not been my experience. Everyone has been very friendly and more that willing to share experiences and expertise. You also get a much better sense of the local market. I haven't yet met up for the informal BP meet up, but am planning on making this one. 

I really appreciate the input Bill. I had no idea the banks put so much effort into looking into these matters. 

I've never heard of anyone doing a lease purchase agreement on a 4plex, but that could be an option for you. Have you considered moving in one of the units?

One thing to keep in mind is that FHA has conditions the property must meet in order for loan to go through. If the property is in poor condition and needs major renovations it will not qualify. No knocking down walls and things like that. I was told I needed 3.5% down of the total amount( purchase price + 203k rehab cost) I learned that the rehab loan amount is good for up to $30,000.

I really like your idea of doing the FHA route and using the extra income for another investment property. I've heard FHA 203k loans take some time to close so find lenders who do them often. Also just as important find a contractor who has done many.

Welcome Andrew. I'm in a similar situation regarding real estate and am still narrowing my FOCUS. Recently I've learned of my favorite acronym: Follow. One. Course. Until. Success. Pure gold!

Idaho Has a due on sale clause 

But I know people who use subject to 

Thank you for your input Ben. Much of what you said I had been thinking about. I am a newbie and have been exploring my options with regards to funding my first investment property. I like the idea of paying myself the interest and having more control over my returns. I can say my job is more stable than most, but am looking forward to the day I can invest full time. I will for sure crunch the numbers and weigh my options before I make a move. 

Fantastic advice from all directions! I have made some rough financial decisions in the past and am determined to make sound ones in the future. Thank you all for the help. 

I have recently thought about getting a loan from my 401k to buy an investment property. What I learned is I can pay a $50 fee and have 4% interest rate. The interest I pay goes directly back in to the 401k. In essence I pay myself the interest. Pretty cool, but what I also learned was the monthly payments I make on the loan is with after tax dollars. So I'm paying taxes on the money twice, pay back on the loan and again during retirement. 

Does anyone have experience with doing this? Any thoughts on if it's a good idea? Pros and cons of loans against a 401k?

Thanks in advance 

I'm going in the direction of the 203k and it is my understanding that if you qualify for FHA loan you are approved for the 203k. The property must meet certain FHA guidelines and can't be a disaster of a house. You will be able to do cosmetic type work, but can't be knocking out walls, re routing plumbing ext. My lender said the 203k portion is available for up to $30,000 for rehab. So if you are pre approved for say $200,000 you will need to be looking for a property around the $170,000 range. Give some local banks a call and shoot em some questions.