All Forum Posts by: Dharmesh R.

Hi Adam, Amit, 

I am looking into Zero-coupon DST as well. Everything Adam said is true. I ran some numbers on an offer and it looks enticing at 10-11% annualized ROI assuming the property value stays flat over 10 years. When I compared it to residential rental RE, the numbers do not come anywhere close to that kind of return. of course, there are too many unknowns with DST. Will be happy to compare notes with you guys.

@Scott Choppin Thanks for doing this. It is informative thread.

@Jason Hsiao. Thanks. I will look those books up. In reading the post that @Scott Choppin has started, I was more or less on right track with the process as I envisioned. A big unknown for me is the finance part. However, I am optimistic that when I am willing to put good chunk of my money on the line, there will be investors/lenders who'd be willing to work with me to realize a viable project. I just need to find them.

Thanks everyone. @Scott Choppin, I am now following your thread. 

I am contemplating venturing into development project - buy land, build multi family unit, rent/sell. Since this is my first time, where can I learn basics of steps involved, typical financing arrangements, etc?

I do not wish to refi as I have great rate already. What I need, if possible, is HELOC in 2nd position for investment property.

I have an existing investment property which is at 60% LTV.

I am planning to buy a PR in near future and need down payment money. Are there lenders out there who'd lend me equity loan on my rental? How do I go about it?

I do appreciate other posters lending good tips, asking right questions. I have given serious thoughts on all those topics, renting home, lease to buy option, wait for few years and save up DP money etc. In the end, as a family we have decided that now is the time for us to buy home, even if it means costly affair (taking money out of 401k). And, there are many reasons behind this seemingly impractical decision. My purpose is to reduce the cost as much as I reasonably can.

@Mark Nolan

Thanks Mark. You made my day! I read up on publication 590B and it clearly states upto $1000 can be withdrawn from traditional IRA without penalty for first-time home buying. The publication also has following tip:

"If both you and your spouse are first­time homebuyers (defined later), each of you can receive distributions up to $10,000 for a first home without having to pay the 10% additional tax"

Now I have much more specific questions to figure out answers for.

1. What I have is rollover IRA. I presume when IRS says traditional IRA, rollover IRA should be treated as such? I will figure it out for sure.

2. Wife does not have IRA, just 401k. So, I need to find out if she can withdraw 10k from my IRA penalty free.

Again, thanks for the tip.

I am looking to buy a primary residence in near future. My current plan is to extract down payment money from my 401k. I know it is frowned upon but I do not have many choices. I was wondering if there is a viable alternative to raiding my 401k. If I must withdraw from 401k, is there any way to avoid 10% penalty?