All Forum Posts by: Jordan Decuir

I’m not a CPA or tax expert so I can’t help with your tax deductibility question...but I agree that having those funds invested in rental RE is probably better than tied up in the stock market and I also fully agree with David B. On the 401k loan idea. In general, I think you can take a loan out for the lesser of 50% of your vested interest or $50,000 and you basically pay back your loan through payroll deduction...the interest rates are usually low (like 4 or 5%, which should be well below your return for this investment)....and the principal and interest payments go directly into your own 401k account. I think the ins and outs of the loan are all heavily influenced by your particular 401k account rules, but if it is administered through one of the larger 401k administrators then it should be a relative breeze for you from what I understand. Watch out though if you plan to, or happen to leave your current employer before paying the loan back in full because there could be some early withdrawal and/or tax penalties if you do not pay back the full amount within a certain period of time.

Hi Iris Sanchez ! Yes, in my opinion Katy offers a good investment opportunity for a long-term buy and hold strategy driven by multiple factors, highly-rated school district, economic factors, westward expansion of the Houston metro area, etc... For an out of state investor, I would think getting a local team (property management probably being the single most important) in place would be at least as critical, if not MORE critical, in determining your ultimate success.

To all of the multifamily brokers and agents, how did you get your start in the business? I have obtained a Texas real estate license currently in Inactive status and am reviewing broker sponsorship in the Houston area and am curious to hear from experienced brokers and agents about how they got into focusing on multifamily transactions as opposed to transactions focused on single family, owner-occupied homes. I am sure that these are two very different worlds with very different clientele characteristics.

Brian Wilson would you be able to PM me that zip code map as well? That would be much appreciated.

Generally speaking, I would echo what John Warren said...if you can go up to 90% LTV, holding all else (relatively, at least) equal, I would go up to the 90% on the heloc. I wish that LTVs greater than 80% on HELOCs were allowed here in the state where I own my properties (Texas).

Travis White and David Olson great job on the strategy of consistently and frequently analyzing deals, this is something that I am sure most or all of us RE investors should be doing on a consistent basis...it’s a great way to become more adept at running the numbers and getting to know the market so that you are able to spot a good deal when one surfaces. Are you making offers based on how the numbers shake out on some of your analyses? ( Even if you are inclined to think that the seller(s) wouldn’t accept your offer). Travis White has your wife worked for a title company closing transactions? Is that where her experience come from?

I have obtained a Texas real estate license currently in Inactive status and am reviewing broker sponsorship in the Houston area and came across a broker that I had never heard of recently. I am looking for feedback on anybody who has done any business with or has been/is sponsored by StepStone Realty.

Tony Castronovo makes a great point about the cash flow. Even though it may not be your primary goal, it could seriously inhibit your ability to continue to add to your portfolio if your future existing properties do not at least break even on a monthly cash-flow basis. I like your overall strategy, though I am not sure that I would pay down your first property faster by making extra monthly payments. Your interest rate on that loan will likely be low and I would recommend using that cash to instead move quicker toward the purchase of your next (rental) property. I would recommend not limiting your search to Katy, there are areas very near Katy that offer properties that make good rentals from a value/cash-flow perspective. I wish you luck with everything. Let us know if you have any questions, I am available if you want to throw around any ideas or if I can help in any way.

Welcome, Brandie Lyons There should be some interesting opportunities brought on by the after-effects of Harvey. Good luck with all that you do. BP is a very good resource to learn in general, ontain andwers to specific questions, and meet other local investors.

@Darin Guidry