All Forum Posts by: Sarah Kartsher

It depends on your intent for using the 401k. After changing employers twice in the past two years I have accumulated (with employers match) $10,000 that I can use for my first real estate purchase, given this amount will be taxed.

I plan on using this for my downpayment on my first property(even given the tax consequences). In my opinion - if you are not able to use it for real estate capital don't invest as this is not a stream of income, its a pile of cash sitting. 

But if you plan on staying with the employer long enough to receive a large employer match, maybe contributing is a good idea. Again, it just depends on your financial goals/plans and how long you will be staying employed there. 

@David Lichtenstadter Yes I agree - I am lacking some of the capital required to do some work that the seller is not willing to do. Their reasoning for not completing some of the repairs(window missing - only has a covering, and a carport support column was obviously hit by the tenant)was that the price was $17,000 below market value, yet this doesn't seem to be the case looking at comps. 

After looking at the option of keeping rents as is, there was a negative cash flow each month after bumping up my rehab budget to accommodate for additional repairs. For this reason, I decided not to buy the property. Its too bad that in Phoenix many of the current landlords require a accepted contract, in this case it seems to waste more time and effort than anything else.

@Brent Coombs The PITI +mtg ins comes to $1400. The rents are NOW totaling $1400($650 front unit and $750 Back). The tenants are also paying for their water bill... @Ryan SwanAlthough there is the human aspect to consider. Knowing that the long standing tenants are families does make me rethink raising rents. If I don't raise rents to market then the numbers will not work after expenses. I would be making a lot of hard decisions considering this is my first deal...

@Ryan Swan - Sure the property is just south of Indian School road - 3905 N 13th Way. What is your input on this property? The inspection is Friday - I will likely decide after that if I will go through with the purchase. Thanks!

Rents are way under market right now. The past owner is a tired landlord who very obviously did not take care of property. When I walked through it, smoke alarms were taken out of the walls and he hadn't installed a window in the back unit so there was nothing more but a covering over it. My plan was to clean and do a face lift on the property - bring rents to market price and break even each month(without me paying rent). Also - the tenants are on month to month which signals to me maybe they were not good tenants?

Congrats! My first duplex is also under contract. I am excited/nervous to start on this journey! Mine is currently fully occupied but I intend on serving the current tenants notice so that I can give the units a facelift and take rents to market prices.

I was thinking along those lines also. Paying market value will not help me in this situation. Although prices have been going up who knows if the area will continue to appreciate in value?

Thanks for your insight. 

Hello Luke - Welcome!

I am from Ohio also(been here 2 years). Looking for a duplex and to house hack. The BP Podcasts have really helped me a lot in terms of learning and inspiration. Good Luck!

Going to be honest here - I am not sure this is a great deal... Maybe a good deal, maybe an acceptable deal but not a great deal as it stands.

If I decide to buy this - it will be my first investment property, my first house hack. Basically, I am going to be okay if I break even. The phoenix market seems to be scarce in quality duplexes at the moment.

Specs:

Duplex- built in 1945

Price - 235K

Down PMT - 8k

2bed 1 bath units

In a good neighborhood - value has gone from $160k to $230 in 4 years

Duplex - two free standing units

Needs a little TLC/updating

rents from past landlord - $650 and $750, but I hope to raise rents after units have been renovated. 

Guessing my debt service and expenses will come out to around $1,700 each month?

I appreciate any tips or thoughts on this as it could be my first deal!

I looked at the website - Do you know if/when there will be any conferences in Phoenix, AZ?