All Forum Posts by: Spenser Harding

We have flipped some houses in Centralia.  I will say, most of the home are 100 years old so they rehab is quite expensive.  There often is old wiring and no insulation. 

Hey!

Just reading into the COVID w/d available for 401ks out there. 100% of my funds are locked in my employer's 401k plan and I am considering taking a distribution and then immediately make a contribution to a Self-Directed IRA to invest a portion of the funds in R/E. Has anyone else considered doing this? My thought is the distribution and contribution would offset the tax liability and then move the funds to a different eligible IRA account.

@Paul Sandhu was the property vacant? I am looking a purchasing an occupied property, tax delinquent for 3 years - owners on title are deceased.. Don't know what the next step would be after successfully winning the auction...

@David Krulac

Revival again. I found a property both owners passed away in 2016, house is occupied, not sure who is there. Property is in Wa, I saw something that if people die before the tax sale, the heirs still will own the property? How does that make sense? The estate hasn’t paid the taxes and the deed is being sold.

Tri-cities

Agree. It is affordable, strong rental demand.  So you have a builder in mind? We are considering that as well.

@Rob B.

Great points, I was informed about a legal contract the tenant has already drawn up. 

@Jermell Shavers I see your point about the contracts however I feel having a contract that states you won't accommodate someone's disability/illness indicates large litigation risk. We are OK having a tenant with challenges. We also look at this as a people business rather than savagery and maximizing profit at the expense of others. We all need a place to sleep at night. 

That being said - Haven't yet closed on the property but we have chosen to go the regular lease route to give the most flexibility for us as well as the tenant. Should they need different care in the future I don't want her locked in a place that may not suite her needs as well as should she pass I would rather not deal with probate and funds that's tide up in a property.

Thanks for everyone’s input! Definitely interesting information and insight.  Going to move forward a normal rent scenario. I have no problem signing a 2 year lease with her at a discount for the stability. Also, going to advise she look into some savings options so her money keeps up with inflation and make it a win-win for her and I. 

@Kyle J.

Terrific info! Sometimes I am analyzing deals I can't think of all the options. Appreciate that very much! 

I have a small multi I am looking at purchasing where an older woman with M.S. wants to prepay 10 years of rent for $40,000 upfront. She wants the simplicity and stability over the long-term. She likes the place and wants to stay. Market rate for the unit she is in $500/mo. The $40k would finance a portion of down payment instead of taking it out of a HELOC. All things equal it looks like I would be losing $20,400 of potential rents as well as rent increases however I would have 0% vacancy in one of the units. Further, I would theoretically pay $26,000 of interest over the ten years if a) interest rates stayed the same on my adjustable rate HELOC b) I never choosing to pay down the principal on that portion of debt. Finally - this would be state allowable and a lawyer drawn contract. Feedback appreciated!