All Forum Posts by: Lindsey Kocher

I paid cash, for property and updates.  I don't need to track/report or provide receipts of updates to them, should I?

thanks so much for your advice!

I moved parts of an Trad IRA and Roth IRA correlating SD-IRAs that formed LLCs and purchased a home in full, later renovated using the same funds. The accounts and transactions are complient with IRA rules.

Question:  Is there anything different I have to submit to IRS for 2023 regarding these changes?  No additional changes were made EXCEPT that I rolled over $20k from trad to ROTH to increase those funds. So outside of the THAT, anything else I need to show receipt of?

We just closed on our FIRST investment property last week!!! A 3 Bed/3.5 bath home 1 block from a large state university.  Been well cared for by female athletes on the volleyball team for a number of years.  

Is rent better per room for listing to be just prior to spring semester and plan for 12-month lease, or shoot for a 6 month?  Finding comps has been challenging because location, unit vs house, mix and amenities make such a range.  

Furnishing - What's expected, or "industry standard"? If we partially furnish can/should we charge more for rent?

Planning on a PM familiar with this local industry at 10%.  

Found a deal through wholesaler and need some assistance understanding the different ways we could structure our financial strategy.

$167k HELOC @ 8.25% on our primary residence as source of funds and good connection with pre approval through local credit union for a commercial loan, 15 yr balloon amortized 25 yrs.

House is 3/1, 2 blocks from a large college campus and rented $200 under market rent until May '24. Wholesaler offering $67k. needs 25-30k to add value and update deferred maintenance. Initial purchase is cash from HELOC as closing is next week.

any planned big ticket rehab would not take place until lease is complete to prep for students next fall. Until rehab is done and rent can be increased the return here is 1%.

QUESTION: 

A - purchase from HELOC now and immediately refinance for purchase price only, HELOC for rehab

B -refi with construction loan or simply keep everything in the HELOC? It seems our HELOC payment eats most of the cash flow....

C - HELOC for entire cost and refinance after rehab

Report below structured as option A..

View report

*This link comes directly from our calculators, based on information input by the member who posted.

 Thank you, this helps a lot!

So we are looking at acquiring a 2 property, 7 door package for $350,000. HELOC for down payment at 8.5%. I'll attach link to the rental analysis below.

What I'm needing is better understanding of analyzing the different ways passive investors can contribute, and those related outcomes. For example, if there is 3-way even buy in at $22,000, what is the 5 yr ROI?

My thinking is..
(assumed cash flow for each year) + (profit at time of exit + initial investment) /(% of initial buy in) = return. I understand unused reserves is also included but much more variable and anything is icing on the cake! Return/time in investment = ROI

Is this correct for a high-level overview to present to otherwise inexperienced passive real estate investors?

Does there exist a "template" or calculator that would support this? 

PLEASE show me the way...

TIA!

https://www.biggerpockets.com/analysis/rentals/88b87661-d1c9...

Thanks! I understand that as my sister in law, she is a non disqualified person according to the IRS. But what I wasn't sure about was the financing around the IRA. Its looking like any and all investments utilizing financing + IRA must use a non recourse loan. Our economy makes it so difficult for certain income ranges to move forward in life and just trying to help her piggy back off a good return opportunity! Appreciate your expertise.

I recent was able to set up and establish a compliant checkbook IRA/LLC through some great referrals here on BP! The property I had originally planned to purchase is now pending while I was getting all of this set up. So now I'm changing focus to use the $$ to help a nondisqualified family member (SIL) get back on her feet in Nashville. I think we'll have more buying power if we use the IRA $$ to use as a down payment, and obtain an FHA loan through my SIL.

What I'm struggling with is analyzing deals (using the BP tool) to determine what my return would be over time. I've invested most of learning into the logistics if my IRA OWNED the property and understand the costs/benefits/risks in this space better then if I just owned a straight %.

1. Would my IRA still be responsible for paying 40% of the taxes/insurance as well?

2. Can the property be titled in her name and my IRA still own 40%?

3.  Would she be able to "buy" the remaining 40% in the future, and if so, how?

I'm looking for a Real Estate Attorney who can assist in helping set up a SDIRA LLC, in somewhat rapid fashion to allow us to purchase a property. Can anyone assist?

Hi all! Our LLC is about to purchase a pair of adjacent duplexes that we plan to manage ourselves as part of our learning, as we are new to the industry. The would be our first "dedicated" investment purchase.

Listed for $189 each
Offering $315k for both, but 2 loans

- Coc Return is 15% (HOME RUN BABY!!)
-  3/4 of units "updated" but don't get to see until contract signed.  The one unit viewed needs probably <$10k to turnover.  
-  One building with new roof this week 
- 3 units currently rented, 2 of which are currently section 8

Planning on using self directed IRA for 20% down, and a DSCR loan estimating 7%. I sought seller financing, but they declined (don't think they're fully informed on benefits)

Validating taxes, insurance, seeking pre approval letter this week.

Plan on raising rent $50-100 but wondering the challenges that might arise since both are section 8.  

During due diligence/inspection - what the primary information I should be seeking from the seller in terms of financials? 

Should we wait to purchase under LLC until any and all updates are complete?