All Forum Posts by: Kenny Smith

Hey BP Community!

I am planning on moving my prior company's 401k to a self directed IRA so I can take advantage of borrowing money against it to buy more Real Estate.

Anyone have a great company they'd recommend to hold this SDIRA account with?

Many thanks!

Hey BP!

I have an older home with original hardwood floors.  I also live in a very dry climate here in Denver.  The issue we dealt with when we first bought the investment property is very squeaky floors.  I used squeak away, break away screws, to fix the larger squeaks.  Essentially eliminating the gap between the subfloor and the joists that was causing the squeak.  For the most part, they worked.  

However, I am still finding additional smaller creaks in the floor boards themselves.  Any recommended product out there that helps hydrate or lubricate hardwood floors?

Thanks in advance!

@Account Closed

Thanks for your input!  I don't claim to be a medical professional, but if someone had a pre-existing lung condition, or is a new investor who doesn't know how much and where the asbestos is, probably a good idea to get a second opinion.

Every situation is going to be different.

Hello BP community!

I get asked this quite a bit with some of my clients, so I figured I'd share my thoughts on it.  If you own a home that was built prior to 1978, there is a good chance there is asbestos somewhere in the home.  They used asbestos back in the day because it was a highly-effective and inexpensive fire-retardant material and thermal/acoustic insulator.  It can be found in materials such as insulation, ceilings, roofing felt, floor tiles, cement, and even roofing shingles.

Realizing this product has proven to cause cancer, it was banned in building materials in 1977.  Although it was banned, there was still product circulating in the market afterwards, so don't be surprised if your 1980 home has traces of it still.

If you run across asbestos, understand most asbestos will not be released in the air, unless it is disturbed.  Before conducting any renovations, it is important to have a licensed asbestos abatement company either test the product, or abate it themselves.  

I have popcorn ceiling in a few of my rentals that more than likely has asbestos in it.  Since I have no plans to remove it anytime soon, I shouldn't be worried about getting it in the air.  Again, unless it is disturbed.  When in doubt, make sure to call a professional to get a second opinion.  

Thanks for reading!

 Thanks for the recommendation Michael!  I am not 100% to be honest..I've been in touch with my plumber as I know eventually they will need to be replaced.

As our short term rental portfolio has continued to grow (3 so far), we've learned so many things along the way.  Quick Tip, whatever can go wrong, typically will at some point!  All we can do as property owners is do our best to mitigate those issues.

Case in point, we have 2 older single family homes we Airbnb (1957 and 1960).  The master drain line is galvanized steel.  Over time, these pipes can start to corrode, which can be restrict water flow, and eventually leading to possible backups.  Both of our homes, did just that.  Although there was no MAJOR damage, it certainly caused issues.  According to our plumber, it was likely caused from people flushing items down our toilet that shouldn't have been, such as "flushable wipes".  These wipes can be a big problem..older plumbing cannot handle things like this.

Since then, we have really made things crystal clear for our guests.  We simply have a sign above each toilet of things they should not be flushing down the toilet, and what type of problems it can cause.  We also have smaller stackable washers that can also cause issues if overloaded.

Simple things like a sign telling the guests can show that you as the host is professional, wants to take care of their home, and it can certainly help mitigate issues down the road.  Even though this seems like a simple thing a guest should know, some folks need that reminder.  Since then, knock on wood, we've had no further issues!  Sometimes it's simple things like this that can save you a whole lot of headache, and possibly money. 

@Michael Voils

So a HELOC is like a line of credit on your home, just like a credit card. You'll get pre-approved for a max credit limit. As long as you don't go over that, you can essentially continue to draw as many times as you want.

You'll obviously want to verify this with whatever lender you'll be borrowing from as HELOC's are all set up differently based off the institution you work with.

But yes, there shouldn't be any reason you couldn't draw that $75k at 2 separate times..you'll then only pay interest on whatever you borrow, not your credit limit.

@Michael Voils

I'd agree with Ryan, most likely you have a great interest rate.  Cash out refi would be meaning trading up to what rates are currently at.

A HELOC is great because you're only taking out the money you need, therefore only paying interest on what you need. Plus, most HELOCs you can pay interest only for the draw period, which could be half of the loan period. As opposed to a cash out refi, it's one lump sum.

@Hunter Broschinsky

I'd agree with everyone one here!  I am a huge proponent of artificial grass as well.  I live here in another very dry climate, sunny Denver, Colorado.  It is incredibly dry and sunny here, so trying to put in sod or real grass is a very poor choice.  Spending a ton of money on water usage, irrigation systems, and paying someone to cut your lawn.

If you're planning on renting this place, you should look at maintenance costs.  Privacy hedges are great, but what is it going to cost to pay someone to trim them?  Vs, just adding in a fence..probably not a huge difference in cost and fences are maintenance free.  Love the xeriscape idea, just make sure you keep your maintenance costs down as they can be an unexpected monthly cost when renting a single family home.