All Forum Posts by: Kathia Molina

I made my bought investment last year. We also got declined couple of times, and I was loosing hope. We made an offer again, and we became the backup offer. The investor who was going to buy it backed out due to the amount of work. Work doesn’t scare us, the money did, so we came in with a much lower offer for an as-is. We scrambled for money and got our property in November. We blew up our budget, and we found ourselves using credit cards to finish the project, and I reminded myself everyday that if it was easy, everyone would do it. Made an agreement with my contractor bc we ran out of money to pay him. The properties rented in March and April 2019, and this month the earnings are making the final payment to my contractor, and have been paying extra for my monthly line of credit payment. Don’t give up, analyze your deals and go for it. Keep us posted!

Hi @Basit Siddiqi, my accountant pointed me to a way of returning the funds to the 401k account, it is allowed by the IRS; however, I don’t think we will be able to refi just yet, and will miss the timeframe. When I say fees, I was referring to the taxes, not the early withdrawal penalty. Good news is, deal is done, and was better than anticipated. We are in the middle of fixing one of the units (the one in worst condition), the other one will be easier and cheaper, so far, we are good with the funds.

Interested

Hi, I am buying my first investment property in San Pedro, and I agree that people live there their entire lives. What I see as a positive (redevelopment aside) I think what makes it very attractive is taht it is right by the freeway and next to PV. The rent control situation is a problem, luckly, mine will de delivered empty. People in the area have been selling and improvements are being made, allowing for the neighborhood to improve. I would recommend staying east of Gaffey like @tylerturpin said.

Thanks @Nathan Gesner! The reason why they are against it, is strictly because of the fees. Our financial planner reviewed our calcs on the property and she agreed that it was a good investment. My main question is whether to rehab, refinance and pay the back the 401 to avoid fees, or BRRR to continue growing my portafolio and hope to recover the fees paid at some point (ROI).

Hello,

My husband and I are in the process of buying our first investment property. We have a HELOC and cashing out a 401(k) for the down payment. Both our tax accountant and financial planner are against the cash out because of the fees, but we have no other option if we want to get into investing in RE. The property is a good deal, but requires rehab. Post rehab, we are thinking would be at a good value, giving us the option of BRRR or....as my taxt acct recommended, return the $ to the 401(k) to avoid paying the fees.

Being our first investment, We are both, nervous and excited, but convinced that We want to invest in RE. What would you guys do if you were in our shoes?