All Forum Posts by: Od Ntuk

Hey all. I'm starting to take a look at Newburgh. I'm having a hard time figuring out what cash flow may be if I buy a multi-family and fix it up. Does anyone have a solid understanding of what rents look like in Newburgh? I am planning to buy and hold and let my properties cash flow. Thanks!

@Ugochukwu Opara Thanks for sharing. This thread has been incredibly informative for me.

@Ugochukwu Opara Did you have to wait till you had tenants in place to complete the refinance and pay back the hard money loan? I have heard that banks don't like to fund multi-unit buildings without tenants in place.

@Ugochukwu Opara I'm sure you learned a lot. Either way good job. I'm happy for you.

@Ugochukwu Opara How long did the whole process take you? Like locking down financing, purchasing the property, rehabbing it, renting it out, and refinancing it? I'm curious how long you had to hold the hard money loan and how much it cost you per month. It looks like you spent $8k to purchase it, then the hard money lender covered everything else for you. I'm trying to get an understanding of how much total you ended up spending to rehab the place and start earning money. Thanks!

@Scott Morris No worries. Makes perfect sense. Thanks for suggesting this.

@Scott Morris Are you a Philly host? Can you confirm that Airbnb is not sharing the days stayed with city government? Also, I looked through the law and they do inspections so it may not be that easy to host past the 180 days and get away with it. Beyond that, you need to get registered which will put the local housing authorities on your radar.

@Dmitriy Fomichenko Thank you for clearing that up. Would a self-directed IRA be a better option for me? Can I also use it with an LLC and invest in my own investment properties?

Thanks!

Hey All,

I have been reading through posts on solo 401ks on BP and articles on the internet but I'm not quite finding answers to all my questions. I plan to roll over my Vanguard individual IRA from when I ran my consulting business. In 2009 my tax accountant told me to put in $5k to get into a lower tax bracket. Since then I have self-managed it and it is now roughly $45k. After I got married in 2009, I switched to working full-time. I also have roughly $30k in a retirement account from my previous job at Viacom that I plan to roll over as well. Beyond that, I have kept my LLC as a shell but plan to use it along with the solo 401k, so I can use the solo 401k to fund the LLC for real estate investing.

I would appreciate any help in answering the following questions:

• Can someone confirm that it is possible to roll over money from a previous employer's retirement account into a solo 401k?
• Is it ok to run a solo 401k based on my previous business if I have it fund the LLC for real estate purposes? Can I maintain it legally with rental income alone?
• Is it ok to use the solo 401k for a down payment on a rental property? I see scenarios online about buying the property in full, but not with partial payments like 20% down.
• Is there a way to start personally profiting off of a rental once the 401k funds are fully reimbursed? Like if I put 20% down and I pay back all the money associated with the down payment over time with rental income for example?
• Is there a limit to how much I can invest with a solo 401k? I don't know if I am getting confused with a self-directed IRA but I remember reading that there is a cap of $50k.
• I would also appreciate any suggestions on solo 401k plan providers that BP members love and can vouch for. Feel free to direct message me, if posting in the message is not allowed.

@Joseph ODonovan I’m starting to rethink using properties as vacation rentals especially with the new law. It seems too burdensome. Renting rooms would also be work with having to furnish common areas. I looked at Philly housing vouchers as an option and it would cashflow my numbers and be a lot less work. Everyone that I know that accepts vouchers seems happy because the payments are regular. I was just advised to screen tenants as I would normally do. Now that I have areas to target in my price point I will come down and have a look. Thanks for your suggestions.