All Forum Posts by: David H.

@Nathan G. You are allowed 5500/yr contributions to the IRA. But if you needed a new roof that would be an expense not a contribution, and that would be pulled from the funds you have in the IRA. I think where you are going is what If the IRA didn't have the funds to cover it. I believe you can use funds from outside but it becomes complicated from a tax perspective. It's not ideal to use funds outside the IRA but you can do it if I remember correctly.

@Dustin Beam No argument here.

@Tony R Fox First off your in a great position. Good job to make money and setting yourself up early. I would focus on building up some funds for the next year or two as it will give you far more options. And continue to educate yourself. If you skip the 401k for maybe a year and can live conservatively you should have a nice amount to invest in a year. Your loan options will also be better with a year of stable employment. Great spot to be in!

@Dustin Beam It sounds like the repairs needed are minor and they are already have that priced in. Going rate is 90-95, needs 8-10 in repairs. So that's mid 80s. Asking 74 is still a good price. 60 sounds low to me but not ridiculously low. I'd prolly come in a little higher if it were me but I'm not a pro by any means and it's not a total low ball. The agent may know it's a bit too low but he should be able to explain the breakdown better than saying your being ridiculous so it may be time to move on to someone that better suits you

@Mehmet Eksik Joe is right in what he is saying. You are getting hung up on the numbers without understanding the concept behind them. I'm an engineer too but remember numbers dont mean anything without concept and they can come out totally wrong without the concept being correct. If you are trying to continue to grow your holding lis an passive income your alternative of leaving the 16k in the bank at 1% is not valid as you would use that money to put towards the next property. So add 5k to it and duplicate the deal you are planning and run the numbers there and that would be a more valid alternative than leaving in the bank.

@Matthew Paul It really depends on the area. In areas with a lot of growth I think you are right. In other areas if the norm doesnt require 33% down one will have a really hard time succeeding doing that. I agree from the contractors perspective it's a better business model but to finance the job but in many areas it doesnt work as well. Where I live no one I know of does it, except guys that are fly by night. My brother is in that business in utah and only the hack jobs do not collect it upfront. I think it just varies

@Chris Jensen These little smartphones have brought efficiency to another level. Breaks, lunch etc allows for alot of opportunity to check on these things

@Tim Hocker That can be a solid strategy. I think your mortgage of $400/mos is missing taxes, insurance etc., maybe it would be in the 600 range. But the general premise would work. If you do it, I would look at refinancing the heloc sooner than later and might also work on trying to get a little more money saved up cause you will need a cushion for the rental property.

@Michael Breedlove It's tough doing a renovation yourself with babies. I started a major one just prior to kids and once they came, it slowed drastically and took me a few years lol. If it were me I would hold more value on your forplex then the renovation and get a house that fits your needs that may need updating over time which will get you a little sweat equity but not eat up all your time. That's what I would do if I had it to do over i think.

@Jenn A. Imo part of the deal is providing a home with consistent functionality. At minimum I would pay the increase of the electricity bill and I would probably pro rate them the nights they had to sleep out. That may not be the most shrude business decision but it seems fair to me. I'm also not the world's best property manage lol