All Forum Posts by: Lisa Lincoln

Hi Tyler

Feel free to connect with me. I have a VRBO property in Big Bear and just purchased a duplex in Lake Gregory. I've had property in Big Bear since 1997, I'm still a newbie. So much to learn..... I know a few people with rental properties in Big Bear. Contact me her if you want to chat or meet up some time. 

I just read about this in my real-estate class it said 78% or less and no more than 15 years. 

I will soon close on my first month to month rental. I usually do vacation rentals. 

What should I or should I not do for the month to month rental? 

For the vacation rentals, I usually put in higher quality upgrades, wood floors, tile bathrooms, crown molding, treated ceilings and quality blinds. 

I plan to down ground the materials for the new property. It needs some upgrades, specifically the kitchen and the wood paneling walls. The place has a very 1970's feel except the newer flooring. I'm not that excited about the floor but will keep it until worn/used.

Any tips for things I should consider?

I've never done a "self directed" IRA (yet). But I can tell you about my experience borrowing from my 401K. I have done this about 3xs.. first I would recommend asking if your plan manages loans? If so, this is a good thing, you can save money on these costs. Your company might have rules of when your money is vested (only vested money is available to barrow) and you can only barrow 50% of the money (from any IRA retirement fund I think). The new loan payment comes out of your pay check, payment with interest. Depending on the plan you can do up to 5yrs or a primary residence up to 10yr.

When your working with your lender let them know you will be borrowing against it. They will factor this into your ability to pay. Trick here, add a dependent on your taxes (since a house is considered a dependent). Or barrow your 401K to remodel your purchase.

Down side, if you quit or move on from this job then your balance is due. If you can't pay or don't pay then you will be taxed at an upwards of 30% on the balance due. 

I'm a big fan of the 401K save up plan, I suggest putting in the maximum, you won't miss it, your taxes will be reduced and if your company is matching then more free money. If you change jobs then you can align this money into a self directed account. 

BP is a great place to vet out your ideas, keep looking for your best options. 

Lisa

To be an agent you need 3 courses. I'm currently working on mine for the same reason at a community college (online). All of the agent and broker courses are offered. If I understand correctly, for a brokers license you need to have the 8 required courses earned with a bachelors degree or work under an agent for 2 years to qualify for the test.

Here is more information that might help you with your journey!

Agent = http://www.bre.ca.gov/Examinees/RequirementsSales....

Broker = http://www.dre.ca.gov/Examinees/RequirementsBroker.html

I witness this all the time. Some people are so lazy to change their situation. Driven by fear and fear is the lack of knowledge. Start investing now. Read a book, listen to these podcast, but change you mind set. Every good result starts with an investment. Or take it easy & keep having someone fill out that 1040 EZ form for you. The government only rewards those that can handle a risk. More for those that are ready or prepared for the opportunity. Crepe diem!

What.... I would have never started. True 100k will give you a good start in the LA market and buying right will quickly build on your investment.  But can you afford to save and only make 3% or less on your money when you could be getting close to 8% on your investment. I took my money out of town (not out of state) to get into the market. Was able to build equity faster than I could save it alone, of course my ability to save money improved with others contributing to my bottom line . To this day I have never lived in any my properties. 

I would calculate how long it will take you to save the $100K and how much will you have if you just start with something within your current buying power. You'll probably find that borrowing against this property in the future will get you into your desired market quicker.

(Recent purchase) update, rent & repeat.

@Heather B. How is the property in Crestline going? I was thinking of doing a vacation rental there. Which is better for this area, month to month or vacation rental? Does it only rent well in the summer? I have a place in Big Bear that is a great in the winter and ok in the summer as a vacation rental.

Just got 4.125% for 30yr investment property on SFH and waiting for rate on a new 30yr fixed residence. Will send an update.