All Forum Posts by: Judd Campbell

@Nicholas Aiola , I have a 10k balance on my HELOC currently. I have 10k cash in another bank account. I am set to close on a property on Monday in which I need 55k. I was planning on taking my 10k cash and using another draw on my HELOC (45k) to fund the down payment. Is there an advantage to paying off the HELOC then pulling all 55k out of there for the down payment? I would be able to claim all the interest as a rental property expense correct? I have use the HELOC for various purchases over the past 3 years and I cannot claim it is 100% for real estate currently.

I bought 5 townhomes a few months back and just recently got a 28 foot extension ladder.  one of my guys went up on the roof to clean out the gutters.  My roofs are good to go and the gutters are now clean.  Since these are townhomes with shared walls it concerns me greatly that an adjacent property is missing it's roof cap.  The wood is weathered badly on the trusses and I don't see how the tenant in there is not swimming.  When we put new flooring in the second floor of my unit we noticed some water damage near the shared wall.  not bad but it was concerning since that is not an exterior wall and there is no plumbing in the shared wall. 

I looked the owner up on the PVA and he is a slumlord.  no way he will even give this a second thought.  Can a property be condemned for mold / water intrusion? I am guessing the neighbors second floor is a wreck. 

Should I bring this up with the code enforcement?  I don't want his slumlording to become my problem.  or should I just pay to put a cap on it myself so it does not get any worse? 

@Justin Windham 996 Turbo Sold it in 2014.  Should have bought more RE in 2010 instead of the car to start with!

The rentals bought me this one

@Edward B. Thanks for the *** kick!  yes, I do own it outright, I had a 911 Turbo I sold to use the cash for units 7&8 back a few years ago, then when I hit 30 I bought the Aston.  

I just reached out to my banker to talk through options and he can come in on a second where I have a duplex with nearly 100k in dead equity.  That will pull me out $50k, I may be able to do this without touching the Solo 401k (or the DB9) at all!  

@Edward B. , how about a $50k loan then use cash and give up some equity to another partner?  I could use the operating income from the project to pay on the loan.  

The deal is undervalued for the market and after we put a few hundred k into the project the plan is to refinance 2-3 years down the road and pull some of the down payment out of the project.  I can always make a lump sum contribution at that time. I am contributing ~$40k annually to retirement accounts so I am not skimping on retirement.  

I have plenty of equity in my properties but because they are mostly 4 units or below I am looking at 10-80k per property.  and I like the terms on the ones with the most equity.  

I am at 36 doors now and this deal would really accelerate things for my family. 

I could sell my Aston, but dang it I really like it!  

Looking at a Multi family project and the bank is willing to do 15% down however not with a Solo 401k due to the non-recourse loan requirement.  I don't have enough to put down 40 or 50% and I don't want to miss out on the deal.  

If I pull out for instance $100k, I get hit with a 10k (10%) penalty then taxes (assume 25% federal, 5% state) on the full 100k as well right?  so I would only net 60% of the balance after the dust settles.

I have enough to make up the other 40% in non retirement money so I can still close the deal.  I feel like it is worth it as I have been loaning that money out and getting a return of 12-15% but it has been just doing short term hard money loans.  I have purchased a few smaller multi-family places with the Solo 401k but use the cash distributions from those properties to go right back into the account. 

The loan approach is maxed out at $50k I understand.  that will not be enough. 

Following.  My wife and I would like to invest in PR and we are planning a trip this summer to look at areas. 

 I bought it with 20k miles in Feb.  just rolled over 23k.  about 2-3 days a week I try to get it out.  I am not keeping it nice for the next guy!  

I went to school at YSU, ME degree. 

https://www.youtube.com/watch?v=qCx7bFhSy0Y

 It is nice to see the reward.  I Sold a 911 Turbo early in my investing to buy units 8 and 9.  Now that I am at unit 31 I bought a DB9 to enjoy a sports car again.