All Forum Posts by: Kevin S.

Would this person have 10% penalty since he is 65 y.o?  Is the age for no penalty 59.5?

Layne, you brought out an interesting topic which I was wondering myself.  Here's a scenario:  

A 65 y.o has $1,000,000 in his 401K and about to retire.  Assume 401K is the only retirement income he will have (We'll leave SS out for the discussion).  He needs about $45,000 annually to live on.  RMD will result in $80,000 minus tax for next 26 years until he exhaust the account. Because he needs $45,000 to live on he invest remaining (approximately after tax) $15,000 for 26 yrs netting him about $900,000. Compare that with cashing out entire 401K at retirement and end up with about $650,000 to buy a rental with about 7% cash flow ($45,000/yr).  If I am correct he may not have to pay tax after using depreciations and other tax write offs(this is open for input and corrections).  In essence, he has $45,000 annually in perpetuity that increase yearly in perpetuity all while property appreciates indefinitely.  This doesn't even factor in leveraging OPM.  Numbers are approximate.  I understand there are variables.  Looking forward for investors and retirees who did it as well as financial experts to chip in.  Thanks.  

Thank you Basit.  Based on your response I need to look for a 'registered agent' (I assume it cannot be me).  Who would that be? CPA, attorney, company that provide such service?   

Thanks for the response.  I would like to DM or speak over the phone or email directly.  

Very helpful response.  Thank you, Jake.

Is it true that tax deduction stops at certain income level?  Does a high income earner loose deduction completely or is it a tiered system?  Thanks.

How long have you been doing it and in what market, Andrea? What type of properties do you get the best results? SFR or duplexes, number of bedrooms/bathrooms preferences, location and demographic criteria. Interested investors can focus on these properties to buy. What type of ROI have you gotten for landlords in the past? Thanks.

Hello everyone. I am a small business owner and already have an accountant for past 25 yrs. I am new to RE investment and starting out. My question (probably more relevant to those in similar situation of being small business owner getting into REI) is : Are 'regular' accountants well versed in RE investor needs? If not, do you use 2 accountants? Do I transfer my regular accounting to the one with RE experience? How do I avoid paying 2 accountants? Do RE accountant (if there is such) work with regular accountants? How do RE accountant differ in service and fees? Anyone been down this road? TIA.

Thank you David. From what I gather until now is I need to get a LLC ready and QCD (transfer) to LLC after closing. Using LLC get EIN, open a bank account and do all transactions using that bank account. Repeat with property 2,3,4 so on. Without legal zoom any one knows what state department typically handles setting up LLC?