All Forum Posts by: John Beck

@Walt Dockery, I would love to sell it, but unfortunately there are enough foreclosures in that area/neighborhood, that I'd only lose.

@Kevin Sobilo, that are some good points. I am not sure if the 11K takes me to 78% or 80%, but when I spoke with the bank, that's the amount they told me that my loan required to auto-dump PMI.

I may get the house re-appraised, since I did replace all the carpeting, and mismash of flooring on the first floor with some pretty nice hickory laminate a few years back. I am not sure that the finished basement was part of the original appraisal either.

I will add that, when I asked the bank about having an updated appraisal sent to them to show the homes current value, they skipped right over addressing that. I guess they are in business to make money.

The $11K would bring me down to the 80% mark, to remove the PMI. My 401k seems to be doing about 3% return per year, so it's not doing stellar, but better than nothing. I also think there are some benefits to the life of the mortgage loan, by dropping $11K on it, that should reduce a ton of interest and shorten the mortgage somewhat.

My background in Real estate would consist of owning my home and 1 rental property, that I break even on, every month. By "break even" I really mean, that my mortgage for that property is covered by the rent, but anything extra, is out of my pocket. Ok, so I'm not really breaking even.

I got into this rental situation because we had an opportunity to purchase an immaculate foreclosure, and needed to cover the mortgage on our previous home.

I found out from the bank that I can drop PMI on my loan if I pay $11K on the mortgage principal. This would reduce my payment by about $225/month.

I can get the money from my 401K (loan). I feel like in this case it would be worth it,  since I'd reduce the amount of interest over the life of the mortgage, and increase my cash flow from 0 to abt $225/month.

I understand that this is financial advise and none of you represent me, or can give me binding advice, I am just looking for some input and thoughts from the more experienced people here.

Thanks all, for the warm welcome.

I do think I am going to investigate my 401k options to fund another purchase or two. I'd like to really drill in on multifamily dwellings, like duplexes or triplexes. Then my daughter's could learn about "house hacking", when they are adults. Heck, in that case I wouldn't even have to gift them a house, but I could sell them a house, and they could build their credit, with a mortgage that costs them nothing out of pocket.

This forum is great and I am eating the podcasts during my commutes to and from Washington, DC.

Hello everyone,

I am John, from Fredericksburg, VA. My background in Real estate would consist of owning my home and 1 rental property, that I break even on, every month. By "break even" I really mean, that my mortgage for that property is covered by the rent, but anything extra, is out of my pocket. Ok, so I'm not really breaking even.

I got into this rental situation because we had an opportunity to purchase an immaculate foreclosure, and needed to cover the mortgage on our previous home.

I am hoping to start purchasing some buy and hold properties, that I can rent to start building some cash flow, to invest back into real estate and grow my portfolio, to ensure a comfortable retirement, and to teach my 3 daughter's how to create cash extra cash flow, for their adult lives.

I am currently a full time Cybersecurity engineer, and would really like to figure out how to make some of this happen by converting my employer held 401k into a Sole 401k, that I can invest in rental properties with.

Other than this rental (and a very similar situation 10 years ago), I am new to real estate investing.