All Forum Posts by: Michinori Kaneko

Hi BP Community,

I have a pretty significant amount of 401k from my prior employers invested in mutual funds, but thinking about moving it into a self-directed IRA and lending out the money from it instead. I wanted to see if anyone does anything similar and curious about:

1. what vendor they use for their self-directed IRA

2. what the process around cutting checks and depositing works

3. turn around time on funding the loans from when you initially request.  

4. any other fees needed for the self-directed IRA.

Please let me know if you have any insights! Thank you.

Hi BP Team,

Hoping there is a tax professional out there that can address my question.  I recently realized a significant 1231 loss.  I understand there is a 5 year carry over on this so if i realize any gains those gains will be taxed at ordinary rates as opposed to preferred rate.  I am wondering if 1231 loss offset can be triggered either by  a) income from operations (e.g. rent - expenses) and B) if I did a 1031 exchange on a property, would I lose the capital gain deferral on this as a result of 1231? Please let me know.

Michinori

Hi there. Try the Facebook group for Fort Wayne REIA page.

group is managed by @Drew Wiard and @Adam Beckstetdt both wonderful people!

So the ones that would rent for $1000~$1200 would probably be a house that goes over $100k in price easily (if it's a turnkey).  Probably more in the range of $120k~$180k (not new constructions, new constructions would cost way more).  They do rent well, the price to rent is slightly better in lower range housings (ones that goes for maybe $60~90k that rents for $700-900ish, but tenant quality won't be as good and you may experience more turnovers.  There are several REALLY BAD PMs in the area that I would tell you to stay away, but AG Rental is one that I would recommend.  However, if you are local and you are buying a turnkey, maybe you want to consider self managing. 

In Terms of valuation, there may be a little more upward push, but i don't expect a whole lot more.  The pricing has gone up SIGNIFICANTLY in past 2 years (or at least that's how long i've been investing for) and i cannot find the same deals I was finding 2 years ago anymore.  To give you an idea, the first property i purchased 2 years ago was pretty much a turnkey, i purchased it for $78k.  A year ago, that appraised for about $110k, it would appraise for higher now, probably closer to $130-140k would be my guess. Not sure if I should consider that lucky, or since it's very difficult to come across good deals nowadays not so lucky...

@Kristyn Grimes commercial loan with 30 year fixed at 3.6%??? are you serious that's an amazing term.  are they only local or do they have presence in other states? 

@Nadir M. i HIGHLY recommend you shop around. I can GUARENTEE YOU that you can get way better rates at lower closing cost at a smaller local banks than big banks like Citi banks even with a discounted rate.  We have a friend at Citi that gave us the discounted rates before and it was WAY higher than what I got from other banks. NEVER use big banks for mortgages. 

@Vinnia Tjhin I've been scrambling to get things together on the apartment complex i purchased in July.  I've been sort of procrastinating finding new deals because I wanted to get the apartment to cashflow first (it's not doing so well right now :( ), but i made a lowball offer on a two property deal on Monday and the seller accepted lol  Oh well, it was really a low ball in my opinion so hopefully it'll be good!  I wonder if my bank would lend in your area too. I can send you my contact if you are interested. Let me know how your PM works out in your area!

@Sunny Suh I'm closing on a refi loan at 3.25% on SFH and 3.75% for a triplex (but this is a refi and also I initiated the loan process 2 months ago). 25% LTV on the SFH and 30% on triplex. Depends on your credit score and how much you are putting down, but you shouldn't have to put down points for a 3.5%? This bank i use doesn't have the best rates but their closing costs are really low (I estimate about $4500 max between all three loans, which entire cost will be covered by refi), so that's also a trade off between lower rates and higher closing costs (sometimes).

@Vinnia Tjhin looks like you're doing well :) already on your second property? awesome! good luck! 

@Brenden Mitchum thank you, figured that was the case but just needed to confirm since i don't have any experience with mobile home park.  

Hi, I've been buying more of residential properties in the past, but I saw a mobile home park for sales and it looks interesting so I have been peaking at its financials and some data points on it.  I noticed that this particular park majority of the park is in the flood zone.  For residential rentals, i stay away from flood zone because the flood insurances are very expensive.  I'm wondering if the same concern would be true for mobile home park.  the park is about 50-50 between land lease and home rentals (and few that are rent to own).  I understand for rentals and rent-to-own perhaps the flood zone would cause the insurance premium to go higher, but is there any other reason i should be concerned about park in a flood zone?  THank you in advance.