All Forum Posts by: Michael Goble

That can disqualify the funds as well. In this case, the 401k loan was a couple years old. The underwriters request a copy of your company's 401k plan policy for a full review. Based on the policy, I was not currently eligible for any additional 401k loans. If you are eligible for a 401k loan you can use the amount you are eligible as reserves

The HELOC is P&I because I went to 100% LTV. Also slightly higher interest. Not ideal. But, I'm paying it back pretty fast

My Earned Income from working for my employer is taxed. The 401k payment is made after my earned income is taxed. The 401k loan itself is not taxed at all.

I have a 401k loan and a HELOC. (Both for investments). The 401k loan payments are made post-tax. The HELOC payments are made post-tax. (My heloc is P&I). There is no difference. If you have some source of non-taxed money to pay off loans, it may not be wise to make that public. There is one drawback to the 401k loan that has not been mentioned. I recently bought a 4 plex. The underwriters would not let me use the $150k+ I still have in the 401k as "reserves" because I have a loan of $35k. It ended up being not a big deal. But, would have made things easier in underwriting if I had those reserves.

thanks!

Exciting news today. Signed a purchase agreement on my first investment property. Nice little 3 bdrm 1 bath

thank you! Very excited to find this group!

Just getting started. 

I have owned one rental due to our home not selling. I would say, overall, it was a good experience. 

This is my first attempt at buying/owning real estate as an investment. I've made a few offers on bank owned houses. The banks seem to want full market value. I currently have one offer out and waiting for a reply.