All Forum Posts by: Paul Cordasco

I have a very specific tax question regarding the UBIT (Unrelated Business Income Tax) exemption in Solo 401(k)s that is normally triggered by UDFI (Unrelated Debt-Financed Income) in IRAs. Does anyone know if traditional IRA (Individual Retirement Account) funds that are rolled into a Solo 401(k) are eligible for the UBIT exemption available in Solo 401(k)s when the UBIT is triggered by UDFI?

In other words, you rollover traditional IRA funds into your solo 401K (which is allowed) and then use debt to help purchase a property. The income from that property generates income. Now, if that property was held in an IRA that income would trigger UBIT because the debt related to the purchase created income (UDFI). However, solo 401ks are exempt from UBIT caused by UDFI even as IRAs are not. However, I was wondering if that exemption would extend to funds rolled into the 401k from an existing IRA.

Thanks in advance for any insights. 

I was wondering if there are non-GSE LTV mortgage options available that would permit projected short-term rental (STR) income to count at the projected cash-flow on the debt service coverage ratio? I have had demonstrated success with a single family home in Florida as an STR and I was wondering if this was a financing option for future properties using this approach.

Looking to put $100k to work right now. I want the $100k to be inclusive of all start up costs (20% down+closing and upgrades) and a 12-month reserve. Willing to look at Long term and STR ideas. ROI metrics would be total return on cash in first 36 months.

I am looking for anonymity and asset protection. I have created a parent in state that doesn't list owners/members of the LLC. I have other assets outside of these holdings I want to protect. If we get involved in any litigation, I would like to remain invisible

Hi BP Community - 

I have created an LLC to hold title of my rental property and a parent LLC that is the manager/owner of that LLC. The parent LLC will be the pass through and parent for all future properties.

For practical purposes, should have my management company put the rental income in the subsidiary's bank account or in the parent's bank account? Does it mater? 

Thanks in advance for your help.

I have settled on a property manager for my recently acquired rental property. In the agreement they sent over there is a clause that stipulates that they receive a 4% commission if I was to sell the property to tenants they place. Is this typical? Can I negotiate this? Is this just an assurance I use them as my broker in that case? Any experienced POVs here are welcome. Thanks BP community. 

I am looking for opportunities to invest in SFR property in the Orlando area. I have a preference for new construction. I am looking to do 15yr Mortgage as I am not interested in immediate cash flow but would be looking to do a cash out refi once I have paid the mortgage off. My goal is to do one of these a year going forward with a goal of stacking up y-o-y these refis payment next decade. Happy to hear all ideas and make relevant connections. Thanks in advance.