All Forum Posts by: Tom Chapin

Have major water leak and need suggestions for reputable independent contractor in north Dallas, Texas area. Thanks in advance.

@Andrew Clifton - More information?

Yes, Mark. That was factored in for our decision. Thanks.

I am planning on removing 401(k) funds to utilize for rental property purchase. My question is, which would be better:

a. purchase outright and renovate 3 B class rental properties with the funds, or

b. use the funds for down payments on multiple properties with the accompanying mortgages from a portfolio lender.

As additional information, I am 66 years old and have purchased 3 buy and holds in the past 18 months using conventional mortgages.

One last note - I have discussed with my accountant the pros and cons of converting the 401(k) monies to self-directed IRAs. Largely because of the lineal restrictions, I am opting NOT to go the self-directed route. My son is an active real estate agent and house flipper and some of my advantages would not be available to me.

What they provided was based on projected loss over the life of the mortgage because of their mistake. I would not have purchased the rental property had we received correct information regarding the flood plain.

My mortgage company erred in its flood hazard investigation - issued me an "all clear" as not being in a flood hazard zone. Turns out the house is in a flood hazard - they had ordered a certificate for the wrong address (transposed numbers). They admitted their mistake and offered a settlement of just over $20k.

My question - Is that amount considered taxable income?

Thanks for any help.