All Forum Posts by: Jacob Kenneally

@Patti Robertson

Will this be availible for purchase as a recording? I’m unable to attend that day.

@Chris Warin what info are you looking for specifically? We took them a napkin sketch of the proposed kitchen layout with rough sizes of the walls and where appliances would be. They quoted us based on their tiers of granite that we picked. When they came out to install it everything was laser scanned then 2 weeks later came back for the final install.

@Vanessa Roca

My wife and I started been buying a new primary residence every 2 years and renting it when we leave. Saving while doing so let’s you grab other deals on the side too. But buying a primary residence, renovating it while we lived there, renting it, and buying another property really let us go slow enough on the first one to soak in all the information we could on each step. An additional bonus of this method for your very first house is that you can get into the first one for next to nothing (3.5%)

@Vanessa Roca

In almost every situation possible a bank/hard money lender is going to what to see that you have you’re stuff together (finances). I’m down in Virginia Beach and deals are still possible. But banks have been more cautious lately. I would honestly spend the next several months eating ramen and making sure every dollar of debt is paid off and just pile cash into a high yield savings account. Having 20-50K in a savings account let’s banks and hard money lenders breathe easier. Unfortunately tik tok has led everyone of us millennials to hunt for the “I turned $100 into $100K in real estate.” While Certainly possible, a much higher probability you end up on the streets if things turn sour.

Also these super high leverage deals are much more difficult to make work without SOME experience. I would buy 5-10 real estate books, read one a month, and drive as much cash as you can into a savings account while doing so. Just my two cents. I’ve never heard anyone be super upset that they had too much of a cash cushion when they started.

@Matt Cecala Love to see the expansion! All of my family is from Pittsburgh and I’m currently in Virginia Beach. I know it’s not a super helpful comment for your end goal but my wife and I are looking for a second rental in Virginia Beach if you were interested in freeing up some funds for your Pittsburgh expansion. Let me know and good luck!

I would pad the Emergency Funds (personal and business) before offloading productive assets "just in case". Having the extra cash security may ease your mind on potential turbulence. Ive never met anyone who was glad they sold a cash flow positive asset haha! Good luck in making a decision!

@Brian Eastman

Ohhh so the profits/income that the rental throws off never actually “leave” the Roth account and are therefore untaxed?

So I was reading the BP tax books and a thought popped in my head.

I’m 26 and work as an Engineer making decent money, contributing to a Roth 401k.

My thought is to self direct my 401k to buy a rental once their is enough in the account (while working on rentals with normal income of course. Rehabbing one now.)

If I direct my 401k money to buy a rental property, I’ll have to pay taxes on the income that property produces. I’m not currently taking the retirement deduction because the account is a Roth. If my account is Roth or Traditional I still have to pay the taxes on the income once the property is purchased. Would if it make more sense to use a traditional 401k to take the deductions now as well if I’m going to pay the taxes on the rental income regardless?

Can any CPA’s shed light on this situation? Not sure if I’m missing something. It seems like I’m paying taxes on the income now and I’ll pay taxes on the rental income after the self directed purchase. Thanks for any input!

@G. Emerson Zollos we use Dave’s Same Day Cabinets for the cabinets and granite. Best prices we’ve found. We install them ourselves so not sure about the contractors side of the question. Hope it helps! The are on the toll bypass road near edinburogh

My Fiancé and I are about to close on our first "Live-In BRRRR" but we are acquiring the property through financing. I know paying cash upfront allows you to extract that cash on the refi but has anyone done a

Finance

Rehab

Rent

Refinance

Repeat

???

I’m thinking with our numbers that we could build enough equity to pay off the first loan with a refi and come out with a few thousand dollars in the end. Is it even worth it?

Am I on the completely wrong track? And info is appreciated!