All Forum Posts by: Matt Yates

Aren't you able to depreciate the property, which would shield some of that rental income?

Welcome. New here myself and am also interested in buy and hold as part of my retirement plan. I hope to find a 2-3 bed Sfr here in winston as my first rental by the end of the summer.

They need to check their plans. Some plans provide for hardship distributions which can include the purchase of a primary residence and are not subject to the 50% rule for a loan from the plan. Tell them to log into their account and check the withdrawal section. It will tell them their vested amount and rules pertaining to their plans distribution rules. If they can't find it, they need to call their plan administrator, they are required to provide this info. http://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-regarding-Hardship-Distributions

As far as your stock portfolio allocation, why do you not have more in mid cap and growth stocks as well as international ex-US? Your allocation seems more like a retiree and not someone with thirty years before retirement. Not a financial advisor, just curious.

Your best bet on good deals in higher end neighborhoods will be foreclosures. From my experience in my banks problem loans dept. you don't see the places trashed like lower end foreclosures. Like the poster above said there's homepath for fnma reo. Just google blank bank reo, VA reo and Freddie Mac reo.

Agree with the great advice above. As far as setting up the llc, one issue banks have with 50/50 partnerships is that if one person has less than stellar personal financials, issues with cash control may arise. If he is truly only wanting returns and you will be managing the property, you need to distribute the equity and structure the operating agreement such that there is no concern of who has the last say when issues arise or when you're applying for financing.

I'm still starting out but I would want to know what the cap rate is, expected NOI after insurance, maintenance, property taxes and the pmi you mentioned. Will you be using a property management company and will you have funds to support about six months of expenses? Is the area easy to rent to and who is your targeted pool of renters? Section 8? Young professionals? University students? I'm a commercial underwriter for a large regional bank and have a ton of experience underwriting and evaluating commercial real estate including all types of IPP. PM me if you'd like to work through the deal and get the perspective of a banker. Good luck.

I guess what I'm trying to guage is why should it not terrify me? Why would basement walls need to be reinforced? Does this normally solve the problem or is it a bandaid on a gunshot wound?

Saying the basement wall has been reinforced leads me to believe that the basement wall needed to be reinforced and then my mind starts going all over the place about foundation issues, improperly sealed exterior basement wall, etc. etc. I'm not truly terrified, it just jumped out at me.

I put it in italics and it's showing up. The part about the basement having been reinforced. That terrifies me. Also, yes, I understand about the tax assessed value not being reliable, but it's fairly reliable around here because our county just did a full reassessment and the market values have been fairly closely aligned with assessed values.

So, I've been gathering info for a while, getting funds ready and have been searching for a great deal. I've noticed a foreclosure within a mile of the local university, listed by Freddie Mac at nearly 1/2 of the tax assessed value and what I've placed as the market value. I haven't viewed the property, but I always think to myself "Why has this property been on the market since November?" when it seems too good to be true. Here's the description;

"Just freshened with new interior paint. Laminate and wood floors. Basement wall has been reinforced. Great buy! Special HomeSteps Financing available. Pre-qual required. Sold as-is. $500 warranty allowance. Agents: See attachments. See Agent Only for selling bonus info."

Pretty standard stuff, except for the bolded part. That TERRIFIES me. Am I right to be terrified? Obviously, further due diligence would help figure out what's going on, but I'm just curious as to the more experienced members' thoughts.

Thanks.