All Forum Posts by: Steve Jeffries

So, I was thinking of moving my W-2 401k to a self directed 401k. I understand that all profits have to be returned to the 401k, and there is a rule that a payment can not directly benefit you. This is my question... This is MY 401k. The properties that MY 401k has will need managed. (Tenants found, maintenance upkeep, etc) I will need to pay a management company, and it will be an expense out of the income to the 401k. What if MY Wife just so happens to own the management company? Her name isn't tied to my 401k, and I'll have to pay some management company, so why not hers? Is this considered a prohibited transaction? Thanks BP

I have an hour commute to work. I normally find myself listening to Joshua Dorkin and @Brandon Turner on The Bigger Pockets podcast, wishing I could take notes and drive at the same time! I have very little time to read an actual book between work, two rug-rats, being a husband and everything else life has to offer. So the audio books are awesome. I noticed that the last post was 8 months ago. Looking for some audio from BP. I think there is one on Taxes that I would like to get. Any other new recommendations? Thanks!

Brian Turnbough I am a newbie invested that has 2 SFR's, and I will be looking for a multi unit as my next purchase. Whether it right or wrong, here is my perspective as a newbie and diy'er...with 6 SFR's I have six roofs to worry about, six lawns to maintenance, six exterior structure/cosmetics, etc. A six plex has one roof, one exterior, one foundation, one lawn. With an SFR I have to get it rented to cover my PITI, where as I may only need 3 of the six to rent to cover PITI in multi. That would allow me to leave one vacant to do renovations and still easily cover costs. So I think the previous poster hit it with the "time" comment.

Thanks for advice and encouragement @Mackal Smith and @Casey Blakely. Constructive criticism is always welcome. I would rather learn from BP than the hard way. 

Thanks @Dmitriy Fomichenko. We invest in a college town, therefore have had student tenants. Previous landlords and financials are checked. Here are the financials of what we have with our two properties. Propert #1: conventional loan for $41k @ 4.8% for 15yrs, 3bed/2bath, mortgage $312, rented @ $900/mo. New Property #2: conventional loan for $37k minus 15% down @ 4.8% for 20yrs, 4bed/2bath, mortgage $204, rented @ $1200/mo. Tenants pay all utilities at both properties. 

So a little background...Without too long of details, I was a landlord by necessity with my first property as a college student where I met my wife. After some time, I started thinking about more properties. My wife on the other hand, is the type that if she could invest a penny and get a dollar, she would just save the penny. After several years of making my case, marriage, both with careers, and two kids later, she finally agreed to give it a go. We searched around the area of our first rental and finally found a house. Closing was taking a little long due to our lack of experience. Once we figured there was nothing that would keep us from closing, we started advertising. This past Saturday we had an open house, rented it to the first group to walk through and closed this past Monday! wooohoo! Here we go! I haven't posted a lot on BP. Just reading everything and trying to learn. Hopefully I'll be able to contribute and give back as I gain my own experience and knowledge. Can't thank you all enough for the info and inspiration!

I found this you tube video from Brandon that has another opinion if anyone else is looking in to this question. http://youtu.be/QlEySyfHKns

Can someone please explain the main concept and details of a "commissioners certificate sale"? I know it's similar to a tax sale with different redemption periods, bid starting points, etc. Thanks in advance BP!

Thanks Greg. I have heard about basing calculations on 100% financing in the podcast and forums, just never really clicked. I see what you are saying about keeping the cash vs putting more down, and having tenants create the equity for you. Makes a lot of sense. Thanks for that. 

I knew the answer to my question would be, for the most part, very subjective. All of your comments bring out really good points, and I like for my wife and I to be able to sleep at night knowing our kids will have a secure roof over their head and food on the table. We probably would have been much more aggressive 5-10 years ago. I like having cash flow so that if one of us were to lose the w-2 job, it wouldn't effect us too badly. Once at that point a transition in to focus on equity building/debt free rentals may be in order. Much thinking and planning is in order. Thanks again everyone.