All Forum Posts by: Spenser Harding

Hey Ray,

I have a family member in the same situation. Is the 50k in a 401k of your current employer? If so, you can take a loan out for up to 20 years for use of a purchase on you "primary house". If it is a general purpose loan, you can take a loan term of up to 5 years. It sounds like you will be retiring by the maturing of the loan so when this happens, the loan will convert to a taxable distribution from your 401k and since you are over 59.5, you will not pay the 10% uncle same fee. Call your HR department and talk to them about the rules for your plan. I have not purchased any property yet but I am considering doing the same thing. For the last 7 years I have plugged as much money in my 401k as possible but I just don't realistically have control over the funds and would like to diversify and buy some investment properties with that capital.

Hey Bryce! I'm newer to BP as well and am currently considering roughly the same thing (2bd/1bas) in the south suberbs of Seattle. So I am very interested what you end up doing. I have not pulled the trigger yet but here is what I found which is close to yours.

Purchase: 85k
Loan: 68k
Taxes: 1200/yr
Insurance: 500/yr
HOA: 3300/yr

So Monthly break down is this:

Market rent $950
Mtg pmt: 355
Tax/ins: 142
HOA: 275

Leaves me with $178 in cash flow and a cash on cash of around 10% return for year 1.

This potential property for me would me my first and I would manage it as well. My concerns are HOA friendliness and finding renters. I just want to get my feet wet too.

Thanks to everyone for the warm welcomes. I am trying to absorb as much info as possible.

Syndey - My REO is currently our primary we live in. We are not sure how long we will live in it but it will definately be a rental down the road.

Brandon - Thanks for your email and advice on condo's and LLCs. I have already read 2 of your suggested books and currently working through the "unofficial guide to real estate investing." I am also listening to some of the podcast on the way to/from work.

Michele/Christopher - Glad you are familiar with F-dub as that is were I grew up and went to HS.

Also - to highlight someone's name - you just put the @ sign infront of it?

Hello! My name is Spenser Harding and I have a passion for finance. For the last 8 years I have been trying to figure out the best way to invest. I've done several things I thought were investing - I went to Seattle University and finished my degree in Finance, I have worked in the banking industry for the last 5 years on a wealth management team, I even studyed 2 months for my Life, Series 6/63/65 endorsements. All this time has passed and even with my education I have just now learned I need to to buck up and buy some rentals.

I was meeting with some clients and they brought up bigger pockets and Brandon Turner's post on hard money and how they just bought a dumpy house with the intention of fixing it up, refinancing it and renting it out. So that got my wheels turning. I looked this website up when I got home and I am very excited about the incredible accomplishments of the community and the vast wealth of information here. So here I am!

My goal in real estate is to a) buy my first rental but also b) be financially free and to c)be my own boss and this is the best way to do it. I have also seen some memeber's goals to have a number of cashflow producing units - I just haven't figured out how many for me yet but hope to do so in the near future. I am an entrepreneurial-minded person and am always looking to adjust and modify ideas about and I think real estate is finally the vice I have been chasing.

From an experience standpoint, my wife and I purchased an REO in Des Moines in Oct 2012. This place needed a lot work and sweatquity and I have until very recently spent all my weekends and vacations remodelling it with her. So between my financial know how and my technical education from rehabing our house - I feel progressing quickly in real estate is a great fit. I am excited to work hard for myself and to buy a property as soon as possible! I am also looking forward to meeting some local investors and interacting with the pros here.