All Forum Posts by: Michell Chase

@Erik Estrada @Joshua Thompson. Lines of credit = pulling cash from a couple of credit cards with high limits that I have available (typical 22-23%).  I cannot take a loan from my 401k as I am already retired so I can only take distributions.  I cannot transfer to a self directed 401k as I am a special class that does not pay a penalty on my withdrawal even though I am only 51.  Moving to a self directed 401k I would lose the ability to withdraw for 8 years.  Between my retirement and 401k distributions this year it bumps me into the 32% tax bracket from 25%, therefore another withdrawal this year would bump me to 34%.  Next year with my pension only I am in the 22% tax bracket but also will have more passive deductions with 2 properties, REP status and cost segregation on both.  I intend to qualify as a REP as I have no W2 income and handling the purchasing and managing of my investment is technically my job now (i do have a handyman as I do not live in the state where my property is, I do all things related to the property other than on site repairs).  As I just bought my first property last month and this will be the second I plan to do cost segregation on both but I won't have enough passive income from RE this year for those deductions to matter I don't believe.  I don't anticipate needing any capital repairs in the 3 months between purchase and January as the units are in good condition and rentable now.

It is also a possibility to do a HML rehab loan as the house does need about 15 windows (houses in this area are all old victorians built in 1800's), this would only require 10% down.

I've already purchased 1 rental property (a duplex) this year with a conventional mortgage. I withdrew from my 401k for that as I am retired. I would like to buy my second duplex using DSCR loan which will require about $63k total to close. Taking another 401k withdrawal this year will put me in a higher tax bracket for 2024. I would like to withdraw from various lines of credit to buy this property and then in January make that 401k withdrawal and payoff the credit used for the purchase. So it would be about 4 months of being at about 80% of my credit limit across the board. In the end is it worth it? I have plenty of funds in my 401k I just can't dip in any more this year to avoid that tax jump. It's a great deal and overall renting 1 side pays the mortgage…and yes I'm am going to be hiring TrueBooks as my tax advisor soon! Just curious the thoughts here in using this credit short term. Thanks in advance.

So in order to get private funding for my next investment property I needed to register an LLC as they don't lend directly to individuals. I registered in Wyoming as many do but just ran across information saying that in order to "conduct business" in NY in having LLC owned rental property, I must now register as a foreign LLC with NY. Anyone have experience with that? Having to register your LLC with multiple states?

Ok.  Thank You.  I am currently trying to identify Real Estate savvy CPA's in the location where the rentals will be as I am a resident of Texas and not NY and I am new to real estate investing.  I am a retired federal employee, I receive a pension annuity and a specialty social security annuity, due to my profession, as I am not old enough to collect social security yet.  That is my only income and currently less than $100k per year for those payments.  I did withdraw from my 401k for this first property downpayment as I do not pay penalties on withdrawals and will definitely kick me into the next tax bracket for this year for overall income.  I have federal health coverage so I will not be a part of the medicare program.

I am currently drinking from a fire house on everything investment real estate.  Closing on my first investment duplex this week and looking for my 2nd.   I hear a lot about ways to 'off set' your W-2 income etc..   I am retired and collecting a pension and access to 401k funds (1099-R income)...so I am wondering how all of the information I am hearing about tax benefits as it pertains to W2 incoming applies to my 1099-R income.  I don't necessarily have specific questions because I am just learning everything.  My investment property is in upstate NY and I live out of state and am managing myself (via my brother that lives in town), not a house hack, long term rental on both sides.

I am currently retired and just purchased my 1st duplex in Upstate NY using a conventional investment property loan.  I am interested in purchasing a 2nd multi family right away while the market is good in that area.  Everything I have read says I wouldn't get a 2nd conventional loan right away even though my numbers are excellent (credit above 800 and over $500k in my 401k with a monthly pension).  Should I consider private lending to purchase a 2nd multi family right away as to not lose the opportunity?  (130-150k range). ( I do not live in NY so primary residence loans would not apply).