All Forum Posts by: Randy Bloch

I thoughts are the 401k money is stagnant and not appreciating much.  We will be losing money due to fees over the long run.  I figure we will lose 45k in penalty.  However if the 2million dollar appreciates at .03 it will be 60k in appreciation. would offset the penalty over the long run.

You have not provide enough information to provide much guidance.  What is father age? is he retired already? if not when does he plan to retire and what is his net worth.  Are you saying his retirement is already fully funded? do your parent have an emergency fund? How much money do your parent need to live off per month? is there house paid for? do they have any debt?  What is that debt and at what interest rates and duration.

Does he have some specific goal or objective for this money, what is time horizon he wants to invest it? Is he an accredited investor?

I would probably put 20k, 10k for him and 10k for you mom into I-bonds without knowing any of the above information.  

You can put it in an index fund regardless if it is inside a regular IRA, ROTH IRA or regular brokerage account. There are limits to how much can put into an IRA or Roth IRA per year.

@William Coet  @Randy BlochBP is primarily a Real Estate forum. 

I've invested in over 50 properties since 2007, both single family and apartments.  Every single one has done better than 8% annualized returns.  Wall Street has brainwashed us to think that 8% is good.

My typical single family, I put $25K down to buy it and 3-6 years later was pulling out at least $75K.  Out of the 35 apartments I've invested in, only 6 have sold at this time.  All the ones I own have a similar trajectory, but the table below shows those that have gone full cycle.  Because I invest in real estate and am a real estate professional, my depreciation expenses have covered all my gains so I have not had to pay any taxes on these returns

I'd encourage you to look deeper at real estate.  When done correctly, it is easy to manage, safer than the stock market, and the returns are much better.

8%  LOL  One can fall out of bed and do better.

Hello,

My wife and I are relocating to another state, and we are considering a few scenarios that come with it.

We are looking at a few options.

1. Sell House

2A.  Rent 

2B. Rent + Convert our detached building into a studio apartment.

We purchased a .5 acre 3/2 - 2002 home for 190k in 2018, and we have a mortgage payment of $1400 including PMI. It was appraised for 250k when we bought it. Our interest rate is around 4%.

Since purchasing, we remodeled the kitchen, new roof, painted the exterior, and are in the process of remodeling the master bathroom.

As with everyone, we like the idea of a tenant providing cash flow, and long term advantages that come with keeping a rental home. However, we do not ever want to move back into this city, and we would be moving across the country.  Some of the worries was having enough funds to purchase a new home if we kept this one, the hassle of owning across country while dealing with maintenance or repairs. I get the sense that it's a lot easier then we think with proper team or management company

We are looking to purchase a home in our new city, but we plan on renting an apartment for one year, until we can find exactly where we want to be.

2B details - There is a 375sqft detached building with it's own private driveway. After crunching the numbers, our estimates would be around 20k to convert this into a studio. It would have a full kitchen, W/D, own septic system. We have quite a few single friends who are looking for something just like this. It could be rented out around $1000.

It would be nice to be completely detached from this place, with a pocket full of money; but the pro's of owning a rental property is too much to not consider keeping it.

What are your thoughts? Thanks!

Hey guys, I am moving to the Twin Cities very soon for my job. Any recommendation on good areas to rent? I am currently looking at a building in Downtown Minneapolis with rent ranging around $1,500 until I get my foot on the ground and start my REI journey and house hack. Would love to get insights on where's good areas to rent for a first time mover in MN as a young single professional.

My parents are both retired. They recently signed a P&S offering cash for the house across the street from my sister with a 3 week closing (fast!). To come up with the cash that quickly they have to pull money out of their tax sheltered retirement accounts. Waiting until their current home sells is not an option.

To limit the tax hit they will take I would like to gift them $30k cash from my savings and $70k cash from my HELOC. When my parents' primary residence sells in the next few months they will return the cash, including any interest from the HELOC.

What are the implications of this transaction for me or my parents? Are there any legal or tax consequences? 

Thanks!

My parents are both retired. They recently signed a P&S offering cash for the house across the street from my sister with a 3 week closing (fast!). To come up with the cash that quickly they have to pull money out of their tax sheltered retirement accounts. Waiting until their current home sells is not an option.

To limit the tax hit they will take I would like to gift them $30k cash from my savings and $70k cash from my HELOC. When my parents' primary residence sells in the next few months they will return the cash, including any interest from the HELOC.

What are the implications of this transaction for me or my parents? Are there any legal or tax consequences? 

Thanks!