All Forum Posts by: David B.

I have been wanting to purchase our first rentel property .

The neighborhoods where i would like to purchase the price far out weighs the rent commimg in.

rough numbers. Asking prices. Not done enough detail research to see what the homes actually go far plus how long set on market.

i drove around today. Found 3 for sale. 

147k 3 bed 1.5 bath

185k 4 bed 2 bath

155k 3 bed 1.5 bath.

neighborhood brings around 900 month on average. Highest i have ever seen listed $1100 which was a bigger house.

will the rent to purchase ratio correct its self in due time.

i try use the 4 square method to determine good purchase or not.

but most of the time im looking for 10% yeld or better or im wasteing my time keep money in stock market.

any tips or advice on how to handle high purchase price and low rents.

Ky resident.

Question about income taxes that will be filed march 2019.

Specifically how much to make losing child tax credit vs 22% tax instead of 25% for the next few years. Including new standard deduct 24k vs 12k.

Try give as much detail as possible. 

Married with 2 small children. Wife is stay at home mom. Own primary resident. Still owe 150k.

Last year gross 144k. Learned that after 110k. Take $50 of 1000 get child tax credit for every 1k earn after 110k. 

I can tapper my salary to right at 110k this year.

Or i can i earn another 15 to 20k next 2 months.

Does it make more sense to benefit from the 3% savings right now.

But

Lose 5% for next 40k. Thats based if after lose one child tax credit you start the next one at 130k. Or even worse is it 10% lose on first 20k.

If i earn more money thats good but i hate to earn more cost more. Im trying to pay down my primary resident to invest into rentel property.

In my eyes any money earned after 110k would need to have to payback atleast 2% to break even. In theory all money earned after 110k. If it was put toward my 4.375  morgage interest. Is it correct to assume i would be to the good?

I all ready max out 401k. Get pretty close to max out both my wife and i roth ira. Usually make up difference file our taxes. Because fidelty allows us to contribute till april for prevous year.

I have ask around. Most people i work with just try earn as much as possible and then firgure it out. But most are in lots of debt and spend alot on liabilities. 

I would not cash out any 401k or ira.

You mention the instant loss of 56k in taxes and penalties.

Take old 401k rollover to traditional ira. So you have more control what to invest.

You other ira. Roth? You know Roth you can pull cash out you have made over the years. You can not put money back this helps with taxes and penalties. 

Take cash put down on one property and get the feel before jumping in with both feet.

Just my opinion no expert on real estate. I'm just starting to research my first rental property purchase. But i have invested in my 401k and Roth ira for 13 years. I know there is no good way I would pay any penalty or tax so that i can invest in another venture.

Good luck.

Do the math. Roi on property. Interest if borrowing. Vs cash and taxes and penalties. 

I like the 4 square method I found bigger pocket you tube video.

green when it comes to real estate.

background I'm 31 currently living in my 3rd primary residence property i have bought in the last 9 years.

First house i lost money after owning for 6 years.

My 2nd house i broke even on money but did not pay myself anything for work done. after 2 years

My current home i borrowed 223k 30 year at 4.375%. currently owe 212k. no other debt.

i don't have all the information about the house. will post once i have all details.

what i do know is 2br 1 bath roughly 900sqft. unfinished basement with shower into floor drain. wood stove no hvac.

small lot. single attach garage. roof may need replacement. not sure if electrical is fused. not sure if pluming is iron pipe. old neighbor hood but not bad area. i would live in area with my wife and 2 kids.

not sure on value maybe fixed up sale for 70 to 80k.

rent for 600 to 700 month.

Potential property is my mother in laws and aunts house. they inherited this house from there father who pass away 3 years ago.

the house has set empty while my wife aunts has paid utility bills and property tax on it.

my wifes aunt has said she wants 10 to 12k to be bought out of house. basically the money she has put in over the years for plumbing repair and utilities and property tax.

my mother in law has not said much on what she wants. if flip she did mention she would want 1/2 profit after i paid my self and paid back money i invested.

i would rather rent property and have the income coming in.

if i bought both my aunt and mother in law out for around 20 to 25k i could pay cash but not have any left over for any potential repairs to get ready to rent of flip.

i plan on bringing my uncle who has been around building and flipping houses in the past to get his evaluations on potential repair cost.

What do i need to do to be prepared for my first property for investing?

I'm trying to read as much as possible.

i'm nervous about investing in real estate because i have not had alot of luck with real estate. had alot better luck with stocks.

i want this to work becasue i have learned alot with basic home repairs and remodels with my last 2 homes and current home. i really do enjoy the results after fixing a house up.

thanks for any tips or advice.