All Forum Posts by: Jacqueline Pelzer

Hi, I am newbie and I don't really know how to go about it here. I need help analyzing this deal: 3 family house in Queens (Bayswater near 5 Towns) Asking price: $518k Tax appraisal: $415k Taxes: will be $4,000 in 2017 3.5% down House: -- upper level 3 beds/2baths washer&dryer hookup -- ground level 3 beds/2baths with a finished half basement which has a half bath plus washer&dryer hookup -- basement level 2beds/1bath washer&dryer hookup Current rent roll for 3 spaces is appx $4,300 I'm planning on putting in an offer on it but I'm not sure what offer I should put. There's no chance I'd get an opportunity like this again. Can anyone make a suggestion? I'm thinking $500k to be competitive. This house is also not on the market yet. I've already had it inspected and the foundation and basement are sound with no issues.

John Percoco FHA you got with 10% down. Was that a first time homebuyer situation? I ask bc I bought a house fha 10 years ago and wondering if I'd qualify again. Congrats. Yonkers rents are good and the taxes are definitely better than where I am which is Mount Vernon.

@Steve Babiak absolutely.  I just wanted to acknowledge just in case.  I'm still trying to weigh the Solo401k vs the SDIRA.  I'm still not sure.  I get the investing in real estate aspect and I also get the loan aspect if you need one and have the 401k.  I'll be getting a consult tomorrow so hopefully it will clear things up a bit.  Thanks again for the response.

@Steve Babiak is this response for me?  Because it was explained above a few days ago to me.  I'm clear now.  I know the convo continued without me with others asking additional questions so just wanted to be sure who your response was directed toward.  Thanks

 If one were located in Baltimore they would know the difference in neighborhoods, no?  For us out of state folks that wouldn't know any better. Smh

@Dmitriy Fomichenko thanks so much for sharing your webinar. I listened to it very slowly and even rewound several times to hear the info again. I think the solo is a better fit now. One of the main reasons being the ability to not have to pay a custodian. I'm going to contact my employer 457 to see if I can transfer my funds but I doubt they will allow the in-service transfer like you mentioned. But it's worth a try. I also have a Roth with them but you said that can't be transferred so oh well. I also have some mutual funds with USAA, can those be transferred?

It's the borrowing feature that I'm more concerned with. I understand the investing aspects. If I wanted to take money from my Solo 401k to purchase property is that not considered borrowing from it?  Is that not taking a loan to purchase this property or is it considered just directing your investment to that property?

what about the max $50k allowed by the Solo 401k. I assume that's to not have a tax penalty. They do that at my job for pension loans and/or 401k loans. What if one needed more than $50k for a real estate deal? Hmm. I'll have to see if the SD IRA LLC has that same limitation. I def see a Solo 401K being better than say a SEP IRA as far as the 25% rule but I still don't see it being better than the SD IRA.

I meant to say spending. Not spinning. The art of proofreading is clearly a continual practice for me. Lol

@Bryan Drury as far as I have read about Solo401k it seemed to be more money that you ended up spinning than you would think. For instance the money is tax deferred going in which is great but then when you borrow against it you pay it back with after taxed money and at an interest rate. Some would say it's no big deal bc it's interest you are paying to yourself. Which is what I used to say when I would borrow money in the past from an investment or my 401k. I'll look more into it but I didn't really like that point bc I have experienced that already in the past. But I'm not an expert so I'll keep reading and learning. And once I'm comfortable then I will make a decision. I try not to make decisions without reading and asking questions.