All Forum Posts by: Usman U.

I'm looking for advice on possible cashing out and selling my investment condo rental located in Crystal City, VA (near HQ2).

Bought for 315k, probably valued around 385k now. Includes 1 parking space, grocery store underneath building (great perk) and storage space. 

1800/month rent and tenant is good till 2021 lease. Never had a problem renting / finding tenants.

325/month condo fee.

Was thinking of selling by owner to save on agent fees etc. I wanted to take the cash out and roll it into a bigger investment property, and prefer to sell out vs. getting a new loan etc.

I'm looking for advice on how to sell by owner and market it to another investor etc. and any general advice on selling a property with a tenant in it.

@Dmitriy Fomichenko Interesting points. Well, I can't even perform this, but let me follow-up with you.

1. Losing mortgage interest - the counter argument is I save that "interest" to the bank to almost 40k. I don't technically deduct it today, as it's a wash b/c of the rental coming in; so, if I were to be able to do what I wanted to do, then I would actually have to declare my rental as all gains and pay more for taxes.

2. You've really piqued my interest here on LTV @ 10-12%. I've been using fundrise.com and get some returns, but can you explain more secured investment by deed or trust?

3. Agreed.

Ok, that answers my question and I appreciate it!

Also, investment property has a sweet mortgage deal. 2.5% 15 year note, and only about 8 years left. About 4k / year in mortgage interest. So i'd save roughly 32k in interest if I paid off property. 

I know I can beat 2.5% in my 401k account in the market, but I'll have a lot of funds remaining that I can continue to invest in the market, and will also have enough in the self-directed IRA to take care of expenses of the rental property such as taxes, management company fees, miscellaneous repairs, condo fees etc. and at least 6 months of lack of tenant expenses.

Hello all,

I've been reviewing these forums and have been doing a lot of thinking of paying off my existing investment property with my 401k funds.

Current State:

1. Investment property has 150k mortgage left. Valued around 350k.

2. 401k has a total of about 400k. I've been doing my own investments in the market at around 20-30% returns per year. I'm a bit nervous about the next 2-3 years in the market, so I'd rather use the existing funds to just pay off my investment property (that I own).

3. With the pay off and the extra 150k cash balance (I've lived it in 2 out of the past 5 years), I could use that to pay down my current mortgage of my primary residence heavily, and ultimately my goal is to pay off my primary residence by the end of this year.

I want to do this for the following reasons:

1. Be debt free by the end of the year.

2. Have the 401k self directed own the investment property. It gives around 2k per month return. I know I lose out on deductions for personal, but I honestly don't care b/c I'd rather just have the 401k flat out own it and collect as a retirement.

3. The extra 150k personal profit won't be taxed due to capital gains < 500k and I've lived in the property for 2/5 years. The existing tenant / management company won't be affected b/c I'm still technically the owner/landlord. The extra 150k money can make a huge dent into my current mortgage primary residence and will help me pay of primary residence mortgage this year.

Is this a dumb idea? I am happy investing in the market, and have been doing very well over the years picking stocks/funds, but I'd rather just flat out own my investment property and 'cash out' of the market and into the investment property. 

I don't really understand the nuances on how this would all work so just looking for any advice before proceeding.