All Forum Posts by: Julia Taylor

I'm researching STR markets and wondering which states/markets it's relatively easy to get a 10% vacation home loan in? I've been pre-approved in FL, NC, GA, and TN. However, in FL the 10% down doesn't work for most condos (and condos are what my budget will afford), and in NC both lenders I've talked to say you need 20% down, no matter whether it's a condo or a SFH. So I'm searching for additional states/markets where lenders can do the 10% down (I fell in love with NC and then later found out about the tighter restrictions - trying to avoid that situation again!).

I'd love to know the answer to this as well!

To clarify, the reason I am asking this is because the BRRRR book says this at the beginning of Chapter 8:

"A crucial part of ensuring the BRRRR process works for you is to know you can actually pull money out before you start the process. It can be crippling to your success if you invest all your capital in acquisition and rehab of a property, only to find out at the end of a project that you can't qualify for a loan and can't refinance the deal. Talk about watching your ROI plummet! The wise investor makes sure they are pre-approved for a loan before writing offers, and this will pay off for you in the end."

But so far the responses I've gotten to my initial question indicate this isn't normally how it's done?

@Alex Hunt Thanks Alex - just to clarify, option #2 would be based on the before rehab purchase price, not the after rehab value?

My husband and I are first-time investors. If I am understanding the refi chapter of the BRRRR book correctly, David advises getting pre-approved for a refi BEFORE you even put a cash offer on a home. Am I understanding that correctly?

If so, how do I communicate to a lender that that's what we want to apply for (I assume this is different than a traditional refi on a primary home)? Is there a specific refi type we should ask for? Do I need to have a specific property or scenario in mind? What types of questions/documents will the lender ask us for? FYI we will likely be investing out of state.

@William Curry, I'm curious what you ended up doing and if you have purchased an investment property? I have been wondering a lot of the same questions you were 5 months ago!

Thank you, Greg! Am I incorrect in my understanding that with an SDIRA you're limited to a property purchase price of the value of the IRA (in our case $175K)? We can't, for example, purchase one for $225K and fund the balance with our HELOC or some other source?

My husband inherited an IRA from his mother in October 2019. It's currently worth $175K. We want to use the money to invest in real estate. He is 51, and from what we understand from the advisor, we have to take out all the money by the end of 2024 (I believe this has something to do with the date her original account was set to expire, but I'm not positive - she would be 83 today if she was living).

After an initial search on the forums and a Google search, I'm thinking we don't want to go the SDIRA route because of all the rules and restrictions. Plus we are looking for something to cash flow now, and we probably want to buy something worth more than $175K. 

As a side note, we have about $900K of equity in our primary home which is in a very popular CO ski town (we are already short terming it when we travel). Not sure how that might play into this whole equation; that's something else I plan to research asap.

I'm looking for out of the box strategies to use this IRA and pay the minimum amount of taxes so we have the maximum amount to play with for our investment. Has anyone done anything creative with an inherited IRA? That most relevant forum post I could find was from 8 years ago and the OP was in his 20s. Thank you!!