All Forum Posts by: Julie Dillon

@Juan Abreu

Since you're prior military, I'd recommend you follow and make a connection with David Pere. He has a lot to share about veterans and growing your real estate portfolio.

Best of Luck!

@Juan Abreu

Do you have VA benefits from military service? If you do, you can have more than 1 loan at a time as long as the total mortgage is less than 400K. Our starter home was bought for 100K and for the last 3 years it has been rented. Then last year we bought another home for 210K and they were both VA loans. This summer we did a cash-out refinance out of the VA loan on the starter home and last week we refinanced the 2nd house out of VA. I'm now looking for a 4-plex with the VA loan again and we simply have to live in one of the units for a year.

We decided on the cash-out/full withdrawal. It was a VERY hard decision but I'll explain why.

We were very late in starting the retirement account so the balance was under 100K. That amount is paltry and in no way enough to help us through our senior years, so we took a HUGE leap of faith and decided that through our own hard work in growing our investment portfolio, we would get a better rate of return than the 2% the retirement account is making. We're in our early 50's and we have a limited amount of time to get this right ...but better late than never.  We hate the idea of the taxes and penalty but its par for the course. We are pulling out way more money than we ever put in it so to us, we're still ahead. The Fidelity balance was never real money in our eyes,  just a number that plays with our emotions. 

We are our own investment vehicle.

I didn't consider factoring the penalty from withdrawing into the ROI. Good catch!

My husband and I are 51 and 52 and only recently got into real estate investing so we want to be aggressive in growing our doors. We have 2 single family homes and 1 duplex and now we are pursuing a 4-plex. We cant decide whether to borrow or simply cash-out my husbands Fidelity account. The account is relatively small so there is no way to retire off the current balance. I'd love to hear what other people have done in this situation and the pros and cons of each option. Thanks!

Aloha!

I used to live in Wahiawa when I was young but grew up in Pearl City. Small world!

I'm in contract to buy a duplex here in Springfield MO so I found a guy I'm about to sign as my property manager. He knows his stuff (older guy) but works alone and in a very narrow price market that doesn't have a lot of turnover.  He works in a rental price range of $700-$1000 a month so if you're looking for less expensive homes in the 70K and less range where the average rent is $600 or less a month, he wouldn't be the guy for you.  Let me know if you would like his contact info.

FYI-since you live(d) in Hawaii, I'm sure you're familiar with "portagee" people who love to "talk story" all day long...This describes Frank perfectly!

@Jessica Mills

Hi Jessica! You dont need an LLC, you can absolutely buy any kind of property in your own name. There are 2 main advantages...First its great because L.L.C. means Limited Liability Company and as the name implies, it limits your losses in case someone decides to sue you if they get hurt on your property. If they sue and you have to pay, they can only get your assets in your company not your personal assets like your home, car, your personal bank account, etc. So an LLC is great from a legal standpoint. Second, an LLC is even better from a tax standpoint. You would now have a small business that is taxed completely different than your personal taxes. Your tax rate is much lower and you have so much more deductions. I'm NOT an expert on either taxes or legal issues but I've learned a ton from experts in the field by listening to podcasts, YouTube videos, etc.

Search YouTube for the Rich Dad channel and look for videos on LLC'S, taxes, Cashflow Quadrant to get you started. It's going really open your eyes like it did mine. I've also learned a lot from Morris Invest videos. They teach how to be a Real Estate Investor but they also have a separate company that buys property for you but just listen to the videos.

I hope this helps. I'll be happy to share my journey since I'm in contract now for a Duplex.

Best Wishes!

@Michael Baum

Wow...all great info!

We have a house in a Las Vegas suburb that we rented out for the first time last month with a local property manager. My husband and I live on the road so we're rarely home. We kind of got our feet wet with vacation rentals but we'd like to expand by buying another property that can be furnished and marketed to a specific niche market. I'm not sure which makes more financial sense...a turnkey home which will cost top dollar with a bland interior or a fixer-upper which although cost less, the labor costs would add up plus time off the rental market. It's a tough decision.

Anyone have advice on how to calculate the 'numbers' on vacation rentals?

I believe it can have a good cash flow even with the added expenses as long as the property is in a area of high rental demand and the property itself is priced right to buy. Is there a more precise way of checking the ROI before making an offer?

Added expenses at the outset would be furnishings, decor, household items, linens, etc

Monthly expenses would include property management, housekeeping, landlord insurance, utilities, internet/cable, lawncare, etc.

Any help or advice is appreciated!

Julie

@David Pere

I'm a Pearl City girl who married a mility brat who went to my high school in the 80's. My father-in-law is a retired 30yr marine who at the time was stationed at Camp Smith. Small world!

Haole boys are the best!

We are in Springfield till Aug 5 (the end of my husbands work contract at Cox South

Hospital) I ended up liking Springfield so much that we are currently in contract to buy a duplex as an investment. We will be at the local REIA meeting tomorrow June 20. Maybe well see you there.

Aloha!