All Forum Posts by: Craig Lessler

Inga C, you can message me. I have two rehabbed ranch condos in North Phoenix in a very good location near the 101 and not far from Desert Ridge. I just sold one today before closing he Unit could hit the MLS. The prior one I sold last month sold within hours after hitting the MLS. The next one will be ready on Thursday.

2 BR, 2 BA.  $150K.  White Shaker Kitchen Cabibets.  White Quartz Counters.  New tile back splash.  New walk in shower.  New Bath Vanities.  New flooring and carpets.  Stainless Steel Dishwasher and stove.  Many other upgrades.  863sf.  408 units in complex.  Fannie and Freddie financing available on these units. 

Monthly Costs:

HOA: $150

Taxes: $38

Insurance: $15 to $20 (HOA fee includes a blanket insurance policy).

Since last summer, I have closed on the purchase of 6 SFRs in Pittsburgh. I am under contract to close on a 4-plex and another SFR on March 9th. I am using a property management company to help me find deals, renovate properties and rent and manage them. I am investing in B Class neighborhoods or better. Rents on the 6 previously purchased SFRs range from $950 to $1,200. I try to meet the 1% rule and get an 8% CAP (although I may take a little lower CAP rate for a prime property bought below market).

I would go with an independent agent who can shop the market as opposed to a captive agent.  If you would like, you can message me and I can give you the name of the independent agent I have used for all of my Pittsburgh properties.

Four Condominium ranch style Units (2 Bedroom, 2 Bath, 863 sf) in desirable La Crescenta Condominiums.  All leased to stable, long term tenants with professional property management in place.  Solid Class B neighborhood.  408 units in the complex.  The units are warrantable (Fannie and Freddie financing available).  Addresses:  (1) 501 W Hononegh Dr, Unit 6, Phoenix, AZ 85027, (2) 521 W Hononegh Dr, Unit 6, Phoenix, AZ 85027, (3) 20401 N 3rd Dr, Unit 6, Phoenix, AZ 85027 and (4) 601 W Tonopah Dr, Unit 6, Phoenix, AZ 85027.  Condo units in this complex sell and lease fast.  Community swimming pools.  Good location.

Firm Sale Price:  $130,000 per unit.  All 4 units for $520,000.  Similar units with upgraded kitchens, baths and flooring selling for $150,000.

Current Rent: $895 [Market Rent $1,000 based on comps]

Monthly Expenses:

HOA Fee: $150 [Includes blanket insurance policy]

Property Tax: $39  [$466 per  year].

Insurance:  $19  [$226 per year for $10M umbrella and interior contents]

Property  Manager: $60

our income is too high to qualify to make Roth contributions.

My 457B Plan offers the Roth so up to $18K or so per year can be contributed.  However, the investment options are limited to publicly traded investments.

I prefer not to put any more money in retirement accounts.  I think they are poor planning tools. The IRS essentially has a lien on my entire harvest in the future.  I think I would be better off paying tax on the seed.  Retirement accounts do not work well when you end up in a higher tax bracket in the future.  

My 457B plan is with the State of Arizona. Getting the plan modified would be difficult if not next to impossible.  So I am stuck with being limited to just any publicly traded stock, reit, bond, mutual funds, ETFs.

I could just buy Berkshire Hathaway stock or something which is likely to hold up and perform well over the long term.

I have a current 457B plan which I am permitted to self-direct through a brokerage account at Charles Schwab. However, I cannot roll it over to a self-directed IRA while I am still a State employee.

I have already taken advantage of the $50,000 max loan to invest in real estate.

I am allowed to invest in any stocks, funds, etfs, etc. that Charles Schwab sells. Ideally, I would want to use the money to invest in real estate, but My investment options are more limited than if I had a self-directed IRA.

I do not want to invest in stocks.  For the past year, a stock guru who regularly appears on Fox Business News has been buying and selling stocks and I have only netted a 1% gain.

Does anyone have any suggestions where I can invest my 457B plan monies short of withdrawing it and paying taxes?

I have 26 units in Phoenix which my property manager has been doing a good job managing.  If you want the contact information, please message me.

Thanks.  Do the $19,000 fix up cost to get the relinquished property for sale and the selling costs get added to the basis of the replacement property?