All Forum Posts by: Rodney Marcantel

I'm in the process of converting my father-in-law's 403(b) account into a Self Directed IRA. He has Alzheimer's and my wife is POA. His wife passed away last year so she is the sole beneficiary of all his accounts including this 403(b) account. With that said, we can use our new SDIRA to fund a rehab project. But like stated above, all work must be done and documented by 3rd party sources which means invoices from all trades.

Our advantage is that we can as needed pull funds out without penalty to move money under his name to his bank account that we use as needed to care for him. All other retirement funds he has including his social security check, are already taxed with exception to profits from the investments and we use that money as his income.

The penalty for withdrawals from an IRA or 401K are 10% penalty plus ordinary income taxing if taken out before you turn 59 1/2 years old. Having a father-in-law that we take care of and is over 59 1/2 helps us use funds as needed as long as we don't go over his 15% tax bracket at the end of the year.

What we do with the money we take out is put in a Roth IRA periodically. I leaned a lot from these webinars in Dallas:

www.questira.com/all-events/dallas-events/

Take out the top part and put some cabinets on one side to make a decorative and functional area. That way you'll still get the effort of open concept but add functionality without impacting the floor.

$155K - $94K - $1.5K - $33K - $10K -$4.5K - $4K = $8K profit.

With their retaining wall cost ($10K is now $19K) = -$1K loss.

Seems like a no brainer to me. Wholesale it and move on. 

In my opinion, this was a bad deal from the start and should have never been purchased at $94K. If the retaining was wasn't an issue, you would have saved the $10K from your budget and would have netted $18K which would have been a good deal with a 61% ARV. But with that retaining wall, your at 67% ARV. Still a decent deal if your rehab costs are under $20K but not at $33K.

Need more info on the deal. Purchase price, Rehab costs without the retaining wall, ARV, Holding costs, RE fees.

This is easy. Do you want a lot of buyers who make offers and possibly get into a bidding war or do you want a small set of buyers who will low ball your asking price seeing the work that needs done. You're better off spending the $4,500 to get a stronger set of buyers and offers that at least hit your asking price. Or you take the risk of sitting on the property much longer which we all know is a huge negative to you and perception in the market about the property and that will drive offers down or force you to lower your price to get more qualified offers.

We're about to put our residence on the market valued at $460K with 100% equity and all we need to do  and is what I would do on any property I sold is make sure the paint is great and clean on every wall, paint the baseboards and door casings and if the carpet is in good shape, have them professionally cleaned. Also I do good landscaping to attract the buyers. My yard looks greener than anyone else in the neighborhood and I only use scotts weed and feed last week and others in the neighborhood use professional companies and pay a lot more than I did for my $45 in fertilizer. Planted flowers through our landscape company for $300.

I took a 4/2 home and converted to 4/3 (2215 sq.ft.). Cost for the upgrade and re-routing the laundry was about $12,180. Biggest chunk of that was plumbing at $5,000 to dig concrete, re plumb, build shower, and finish out (install fixtures). This upgrade alone ads about $15,000 - $18,000 in added value. We are leasing the home now for $2,000 monthly.

My suggestion in weigh the cost versus the appreciation versus the marketability. A master on suite will always be a top improvement to a home outside of an addition (adding sq.ft.).

Bought a home 2215 sq.ft. And added 3rd bathroom to a 4 bed/2 bath home. Paid cash for home using funds from father-in-law's annuity we didn't know he had until his wife passed away. It wasn't enough to pay for house so we got the rest of the funds from our investment portfolio, about $75K of the total $211K purchase price. We were high bidder on the house with 4 bids. Paid $17K for upgrades (3rd bathroom, hardwoods, paint, crown moulding and LED can lights). We moved my father-in-law in with a nurse and 6 months later, sold the business side of the care home to a care home agency who leases the house from us for $2,000 monthly (net after taxes and insurance of $1,600) with a 2 year lease and 5 year option. They are paying on top of that, $10K got the business upgrades to care home status which offsets our $17k upgrades. Bottom line Our investment is netting us 9.5% return (ROI). Not bad as using the home as a care home allows us to charge about 25% more in rent than as a Single Family home. Part of the $350 in monthly expenses Besides taxes and home owners insurance goes to home warranty and landscaping services. Any home warrant repair service fee ($60) is paid by care home company.

I'd fire him unless he's working for free (then you get what you pay for). That's ridiculous and obviously he/she doesn't know how to install a header beam.

High quality carpet, not shag or loose carpet fibers. Something that wears well and cleans well. That will appeal to buyers. You have any pics of your home or address? I'm in Dallas too and would love to see your work as I'm a fairly new investor with one rental.

That's a big question as there are a lot of variables involved. Overall square foot, 1 or 2 story, brick, siding, stucco, peer and beam or slab foundation, level of interior upgrades (i.e. contractor grade, custom, etc.)