All Forum Posts by: Derek P.

Congrats @Michael Noto!  These posts are great!  I actually walked this property myself when it was on the market.  Will you be turning it into a 3 family?  I think the 3rd floor had its own bathroom from what I remember. I was also wondering what flooring type/model did you use.  I like the look of it.

I used to use erentpayment back in the day and I have considered cozy, but I prefer my current setup since funds show up the same day. No cost for Zelle either.

Matt Schambeau I also use Zelle which works directly with my bank. Funds from Zelle show up immediately if the tenant uses a participating bank. And the tenant’s name shows up in the transaction description. When using the Bank of America deposit only cards each tenant gets their own card with a unique number. I am able to keep track of who is making the deposit since their card number shows up in the transaction description.

I recently pulled contributions out of my Roth IRA Fidelity account tax free and penalty free since my first contribution was over 5 years ago. You should call Charles Schwab. They should have the answers for you and be able to help.

I use Bank of America and issued all of my tenants deposit only ATM cards. They can deposit cash, check or money order and I get the funds immediately in my account.

HML= hard money lender PML=private money lender

Thanks @George Blower!  I will probably go forward with it.

Hello everyone!  I am trying to figure out if this strategy makes sense.  I currently have a about 20k left on a 401k loan that I am paying back. I used it to purchase some cash flowing rental properties.  The monthly payments are about $650.  I would like to take out another 401k loan to purchase additional property, but my employer only allows 1 loan at a time.  

Should I take out a withdrawal from the Roth IRA portion of my retirement account to pay off the 401k loan? It's been over 5 years now so it would be penalty free to withdraw from the Roth. According to the withdrawal preview I did, it would only cost me about $1,000 in federal withholding.

I think the benefits of doing this would be $650 additional monthly cash back in my pocket which I could save for future RE investing.  Then within 1 year or less I will be allowed to do another 401k loan of up to $50k.  Do you think this is a good idea or should I just continue to pay off the 401k loan slowly?  

There is a good book out there called “Feel the Fear and Do it Anyway”. Maybe just reading the title is enough! It definitely gets better with each deal though. Even with the deals I slightly regret, I do my best to make the lemons into lemonade.

UPDATE: Next week I am getting about 25k back on a refi cash out on one of my properties. What would you suggest for my next step? Set aside the full 25k for cash reserves, pay off some debt, perform preventative maintenance (furnaces, etc) or buy next property? Let me know your thoughts!