All Forum Posts by: Jeremiah H.

Ok, so I can purchase property within my Roth IRA and it's not the same as using a 1031? If I don't have the full amount needed in my Roth, how could I borrow the balance without getting involved on a personal level?

I would increase my cash reserves to more than you think you'll need then reinvest it via option #3. Since you are talking about paying bills with $400 it gives me the perception you don't have enough reserves in both business and personal. 

 I think this sums it up. Using a CC to buy a home is a terrible idea and will eventually lead to disaster. 

Why would you have a 3 month vacancy the first year when you know two years ahead of time when the property will be ready for rent? If you are on the ball you will have renters moving in the weekend after you close, correct?

I believe it is much simpler to put this into the contract. 3-4% is a number I've found works for everyone. I keep my properties well maintained, I response quickly, and expect to be paid on time. All my investments are SFH and I have reasonable tenants that understand cost of living increases. I think putting a standard amount in their first contact sets expectations and avoids for future issues.

I used FBC for all my lending needs currently. Feel free to drop my name when talking to Matt, here is his contact info. 

1031s are completely new to me. I've "googled it" and believe I have a basic understanding, but I've missed a few things. Here's a basic example, please let me know how I'm doing and where I've gone wrong.

I've got $20,000 in a ROTH IRA.

I use the $20,000 as a 20% down payment to purchase a property that is $95,000 and $5,000 in closing cost. 

Let's assume the Mortgage is $500/month, taxes are $100/month and insurance is $100/month and I rent the house for $1,000/month. 

This gives me $300/month in cash flow, where does that money go? Is the person writing a check to my Roth IRA or am I putting that $300/month back into my Roth via a personal check from me?

Let's assume after 2 years I sell this property for $120,000 and owe $90,000 on it. $90,00 would be paid to the mortgage holder and would the other $30,000 be put back into my account tax free since it's within a Roth?

Am I required to continue to keep the money in real estate or can I go back and forth between mutual funds and real estate. My goal would more than likely to have buy and hold SFH with this money so I don't foresee many buys and sell.

Thank you for your help with this. This is a completely new topic to me and I'm sure I'm missing the boat on some level. 

@Jay Hinrichs

No sir, I haven't looked into those sites. Between my business, rental homes, and stock market I'm comfortable with my diversification and have a home for my money. I've also never entered into partnerships. I realize this limits me to projects I can fund and manage myself but it also eliminates any partner issues that could arise. It's what works for me and my personality. 

This is my first post on BP so take it for what you will. 

I own 6 Turnkey properties and to this point they fit my lifestyle very well. I'm a small business owner and make 250k+ yearly. I have no issues with the 20-45k that I have to put down per home and I keep my houses rented at roughly a 95% rate via Facebook groups. It's a very easy process for me and my wife. We don't want to spend the time and money rehabbing homes. We typically buy a house and have a renter scheduled to move in within the first 5 days of closing. We fix very little, have had very little out of pocket cost due to the houses being TK. The renters are normally very happy with the house, they are extremely easy to rent, and the renters have been staying a reasonable amount of years to this point. We believe that's because we put them in a great house to start of with. 

We understand this isn't the most profitable venture in real estate but it fits our lifestyle and still provides incredible returns compared to other standard investing.