All Forum Posts by: Sam Gergley

@Keith C. Thank you ! Very helpful !

Hello!

If I purchase a home via seller financing will that effect my income to debt ratio when a bank goes to qualify me for another mortgage? My thought is that it might be advantageous to go the seller financing route so I can acquire multiple properties at similar times without facing underwriting scrutiny. In other words, will a bank see this debt that I owe?

Hope that makes sense !

Thank you for the help!

Sam

@Alan Averill. Any luck finding someone with short term rental experience in PR? Regarding the opportunity zone. Did that include Old San Juan?

I am getting close to putting an offer on a new build property that has a full 15 year tax ababtment.

My concern is that as the tax ababment runs out, the property won't appreciate at the same rate as other properties in the area.  

Does an expiring tax ababatment hurt the yearly appreciation of a property ?

Thanks everyone for your input.  Lots to think about.

I think it is a great idea to either roll it over into a self directed IRA or have her roll it over into her new job and take a loan out.

Thanks!!

Yea, we are anticipating having $11,00 left after 20% income tax and 10% early withdrawal.

Not a ton but critical to us getting a deal sooner.

To clarify my monthly change would be 

Current situations: -$1400

New situation: - -$600

Total savings per month: $800 

Hello,

Here is my idea, is it a good one?

My wife is starting a new job and we are discussing options in regards to what to do with her current 401k that is worth $16,000.

Our plan is to use whats left after income tax and early withdrawal penalty to move into a duplex and rent out our current property. 

I have about 20% of my current income diversified in my 401k and a Indexed Mutual Fund so I have a plan for retirement regardless of my wife's 401k.

Is it a good idea to cash out a 401k early to fund a rental property?

The potential numbers are below:

Renting our current place:

Rent for $1900

Monthly Cash Flow: $200 (Accounting for expenses using SFH Rental Property Calculator)

Move into duplex (FHA Loan) :

Rent one side for : $1400

Live in one side : $0 

Total Cost : -$800  (Mortgage +Expenses - Rental Income for other side)

Total Savings by Moving into Duplex:

Current Mortgage Cost - Future Net Cash Flow with both properties

$1400  - ( -800+200) = $800 in income per month

So we will go from spending $1400 a month in mortgages to actually making $800 a month.

Thoughts? 

Thanks!!!

Sam 

Hello,

I am interested in a property that includes is 2 units. The top floor is an apartment residence. The bottom floor is retail space. 

Would an FHA loan qualify if I lived in the apartment?

If not are their any more low down payment options for me to look at in this situation?

Thanks!

Sam 

Hi John, awesome job. Im getting started in Columbus as well and have been involved in two successful deals in the downtown area. I'd love to help/learn with your team if you need it. Please contact me!