All Forum Posts by: Evan Bonnell

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Thanks for the sanity check. 

Some lingering questions...

I'll have to pay taxes on 401k withdrawals after age 59 1/2. My effective tax rate will likely be much higher due to significant rental income. Why not take the hit now? And get a 15% return with REI instead of 7% with index funds?

Anyone else considering doing this? Is this a crazy plan?

My plan:

My wife and I lost daycare so we're splitting time off to take care of our children. 

We have significant cash reserves and 75% equity in current RE portfolio of 5 SFR's

We have several hundred thousand currently in 401k

Wait until market rebounds to pre-pandemic levels, then...

Withdraw $100,000 from 401k, penalty-free, pay taxes over 3 years

Use $100,000 for 25% down payments on two duplexes (30 year fixed mortgages)

Hi Guys, 

Sorry I'm late to this thread. Great seeing your numbers in Depue. It is known as a lower end town but your numbers look fantastic. It makes sense that Ladd rents would be higher. 

I've been investing in La Salle - Peru for a few years now. I have 3 houses rented out and 2 under rehab. Getting $750, $900, $1050 for the ones rented, and will likely get around $1000 for the 2 being rehabbed. I'm happy with my returns but am very conscious of property taxes (IL is super high), they can make or break profits. 

I do pretty extensive rehabs and attract lots of interest, then pick out the best applicants. I have nurses, engineers, and politicians renting my houses. 

@Emmett R. McCarthy I would also be interested in any materials you could provide. And what kind of services do you provide in the tax lien investing realm? Thanks. I'm interested in investing in La Salle, Lee, and Kendall County. 

It's certainly more risky than buying an REO or property off the MLS. I always have a title search performed by a local title company before bidding. Sometimes it helps to go in and review the search with the person that performed it. I knew this property was vacant just by stopping there a couple of times. I was able to see in the windows and didn't see extensive damage.

I was pleasantly surprised when I gained access this weekend. The previous owner pretty much emptied out the property and left it in good shape. There is some condensation/mold on the floors from sitting vacant with the utilities off, but it should scrub up nicely with some strong chemicals.

Rehab costs will be minimal (maybe $2-3k). I'll keep it as a rental and hope to get $750/mo.

I am going to hold this one as a rental. Thanks for the advice. I'll obtain the deed and go from there. 

Welcome Joe. You're on the right track already. I wish I would have done a live in flip years ago. Returns on multi family in your area are probably great, not as great where I'm at. 

I just purchased my first deal at a sherriff's sale. Purchase price was $24,500 and I'm thinking it could sell as is for $50k or rent for $750 - $800/mo. I was able to see inside by peeking through the windows and it looks pretty solid. The electricity is off but there wasn't any flooding in the basement, which I was initially worried about. I did plenty of due diligence and had a professional title search done before bidding. 

Just wondering if anyone else has had success with foreclosure auctions? How long until I take possession? How long before I can get the electricity turned on? How long should I wait until I call a locksmith to enter?

Hello,

I'm interested in purchasing a property at a courthouse auction. I'm very familiar with the town and neighborhood the property is in, and have determined that it could probably sell for $130-140K in as is condition. I've set my max bid at $80K.

I'd like to verify that the property is clear of any liens (other than the first mortgage). I ordered a written title search and this is what I received. Can someone please tell me if there is anything I need to be concerned with in terms of liens or encumbrances on the property? Thanks!