All Forum Posts by: Michael Jackman

@Charles LeMaire

Great input! Thanks for clarifying. No, do not! take out for negative return toys! I would think those on BP would know this already, but again thank you for reiterating that. 

I also love your input on what the tax rates will be after those 3 years to know if it is a good time to pull out since you won't have to pay the 10% penalty. Time will tell on that one. 

As for the tax bracket bump, yes, that is also something to take into consideration. Though you can pull from the IRA over those three years in smaller amounts and strategically stay underneath the threshold you prefer.

How does this compare to setting up a SDIRA? Which seems to be a better way to go, from what I understand of it. I don't know what the hassles are either way. One, you have be infected with or directly affected by the virus to take advantage of the new bill. The other, you have to set up an account with a custodian. Since I haven't done either I really don't have any input. But I would love to learn about it from those who have.

Stay safe!

@Caleb Heimsoth Agreed, if you don't pay it back. It is still a great way to finance ventures during that time. For those investing in long term contracts, this won't work. But for those who want to BRRRR, flip or join in syndication for that defined duration, this would be a great way to do it.

As with all investments, you must tread carefully. 

https://www.marketwatch.com/story/coronavirus-stimulus-package-tax-relief-withdraw-100k-from-your-ira-and-repay-in-3-years-with-zero-tax-liability-2020-03-27?reflink=mw_share_email 

Just read this article and might be great news for syndicators. 

A lot of people are seeing this as just an opportunity for a money grab, but that is not what the laws intentions are. Helping people who are affected by this chaos, get back up on their feet or help them move forward in life, while supporting everyone else by keeping money flowing in the economy. Far better way to stimulate than the previous administration's attempts.

What do you think?

@Scott Raynor

Right, what @Evan Polaski said. If you house hack then definitely go for it since you need to live somewhere and pay anyway. 

Depends on what you are trying to get out of the deal. Cash flow vs equity. Try a second opinion on the rehab costs and ask yourself if the rehab is worth the anticipated $100 - 125 extra a month. 

 @Michael Plaks Thanks for trying to simplify things. It really helps.

I'm not an accountant and I appreciate all the advice everyone has given. 

@Eamonn McElroy I would definitely contact an experienced CPA if I were to go this route. 

So do I understand you correctly, that unless I am doing a 1031 exchange, then there is no tax benefit? 

That doesn't cover the cost of the units then. What about maintenance? Seems like there is a number of units where this becomes worth the resources and below that it is not worth it. Am I right?

"Changing demographics and rising property values that destroy a neighborhood’s old character is called gentrification. It is not desirable."

So I just read this in my local city master plan and was very confused since they are also pushing for more density (like most cities), including ADU creation along with apartment and multi-use buildings. Not only are they pushing for that, they are also pushing towards young professionals and retiree demographics.

They are doing a lot of incentives which are good. But this sends a stalled (death) message for the city. 

I wonder if they just forgot to take it out? ;)

What do you think?

What is your total income from your laundry service you provide your tenants? I'm looking at doing this for a six unit building and I am trying to calculate the total revenue from doing that. 

Do you allow a company to provide the service for you and you receive a payment from them? Do you purchase and maintain your own equipment and collect all revenues?

Which way have you found to be the most effective?

Thanks for your help!