All Forum Posts by: P Joshi

@Shawn Holsapple

Thanks for sharing your experience. So, given what you know now, how do you compare SFR vs MFRs (>5 units) as investments? Pros / cons? Are we just better off sticking to SFRs?

Did the CAP rates used to be better earlier and has there been high appreciation in apartments recently?

By size I don't mean size of the city. I meant size of apartment (no. of units). I agree with you about Duplexes, 4plexes not often working. I was curious if apartments with 5-10 or 10+ units do well in certain neighborhoods ??

Hello Brock Y.

Could you share your experience with Indy? Could you find good CRE professionals?

Hi Bill Manassero

Were you able to connect with CRE ? It would be great if you could share about that and your experience in general. I am interested in investing in commercial MFR in Indy.

@Michelle Watt

Or others.

Were you able to find contacts in Indy / KC ? If so, could you share ? Also, I am curious if people can share more about their experiences with apartments in Indy / KC.

Did any of you try investing in apartments in Indy? If so, how was your experience? I have been hearing that in Indy SFR can be good but duplex, triplex don't work out as they end up high vacancies. I wonder how MFR (>5 units) work?

Are there particular cities / neighborhoods where commercial MFR work? Does it have to be certain size / class A/B to work?

Also, I am interested in connecting with other MFR investors, CRE brokers, property managers in Indy. Any recommendations?

Thank you all.

@Wayne Smith

Could you say which portfolio lender it is that offers 4% on blanket loans? Is it ARM with balloon?

In my experience, that pattern of paper returns not materializing in true across many markets where I invested. 

I am in Bay Area, CA and wanting to invest in Indy. I am interested in long term buy-hold. I would appreciate recommendations for the best property managers and realtors / wholesalers. 

Bill, thank you for your response. And yes, I agree with you that you can have a traditional IRA, as well as roth IRA in addition to your solo 401k. The only issue is that income limits to make tax-deductible contributions depend on whether you are covered by what IRS calls "employer plan". So, is a solo 401k based on someone's small self-employment income, covered under definition of "employer plan"?

Sorry, for wrong link format.

Check table 1.2 and 1.3 at this page:

http://www.irs.gov/publications/p590/ch01.html#en_US_2013_publink1000230467

So, if your solo 401k is same as "employer plan", for a single, you can make fully tax deductible IRA contribution only if your modified AGI is less than 59k. However, if you don't have 401k with W2 employer and your solo 401k is not counted as "employer plan" then, as per Table 1.3, you can make a tax deductible IRA contribution, regardless of how high your modified AGI is, if you are single / HoH (and income limit of 178k for married filing jointly)!

If solo(k) is counted as "employer plan" basically, your retirement contributions can only go to solo 401k and that is limited to probably approx 25% of your schedule C income only.

This IRS page tries to clarify employer plan but it is not clear to me if solo 401k fits the bill.

http://www.irs.gov/Retirement-Plans/Are-You-Covered-by-an-Employer%27s-Retirement-Plan%3F

This IRS page mentions that limits are subject to coverage under employer plan.

[url]http://www.irs.gov/Retirement-Plans/Are-You-Covered-by-an-Employer%27s-Retirement-Plan%3F[/url]

What if you are not covered by typical employer plan but if you have a self directed 401k / solo 401k (one member 401k plan for a self employed person)? Are you still prevented from IRA deduction similar to large employer 401k members?

Problem is that for new self-employment gig, schedule C income may be small and so retirement contributions to solo(k) (roughly max 25% of schedule C income) would be tiny. But, income from non-schedule C sources could be enough to make a deductible 5k contribution to IRA. But, if solo 401k is treated as W-2 employer plan, not much retirement contribution can be made either to IRA or solo(k).

Any clarification?