All Forum Posts by: Tom Rolph

@Enrique Morales What type of business are you in? Frequently you can split a business up and have a second business that does not require employees.  

If he is motivated enough and you want the tenant gone, find out what it would take to get the tenant to move. Use a little of the money you didn't spend to buy the place to help the tenant out.... 

Kills is your friend!! Kilz will seal all of the surfaces you paint. My first rental had gloss paint on all of the walls and I thought it would be so easy to just wash down the walls... DAYS of washing and the coffee colored water coming off of the already washed walls I was told about Kilz. Sprayed the entire house and what a difference! Below is link to introduce you to an ozone treatment. I am NOT recommending any company or product in the article, just a pretty good overview.

https://www.washingtonpost.com/lifestyle/home/its-tough-to-get-rid-of-cigarette-smells-but-an-ozone-treatment-can-do-it/2018/11/11/e0d64dfa-dedc-11e8-85df-7a6b4d25cfbb_story.html?noredirect=on&utm_term=.7f52158d27c3

NO MATTER if you think you will ever do a deal with the lender again, ALWAYS maintain your professionalize. At the end of the day, your reputation is all that you have. That being said, you do not have to be a push over. The way I see it, it is $1,500 and if that is the difference between a good deal and a bad deal, it is already a bad deal. Pursue what ever avenues you have to hold them to their disclosure but ultimately this is just one of many bumps in the road of an investor. The way I always deal with issues like this: once the person your are working with says, "I am sorry, there is nothing more that I can do". I just say, "I get it. You have to go by the rules. Can I please talk to the person with the authority to reverse this decision"? I keep walking up the chain of command until I get what I want or run out of chain!! Always be polite and appreciative of everyone that takes the time to talk to you. Keep your eye on the prize, if this is a deal, get'er done and move on to the next. 

Ultimately you need to be able to sleep at night. That being said, I would not shy away from a HELOC. The main thing to remember is to get a deal! Getting a GREAT price on the purchase will drastically reduce your "Risk" and exposure. You said want to buy and hold. Buy a great deal with STRONG cash flow in a strong rental location and what is your risk? Even if the value of the property dips below your purchase price during a market correction, you are not trying to flip the property. It is a long term hold and it is most important that it is rented and cash flows.

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#Matt Ferch You need to give a lot more details to get a really good answer. What EXACTLY are you thinking of doing. One thing that comes to mind that might work for you is to BORROW 50K from your 401k and do the flip. Then when you refi it, pay back your 401k loan. MOST 401ks allow you to borrow up to 50k. Most require monthly payments over 5 years to pay it back. This strategy would NOT require a self-directed account. Just more food for thought. You really need to understand your plan before moving forward on anything. One false step and the IRS can undo your retirement account deferred tax status. 

This IS the place to start. Lots of good information for you to consume. 

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The Ultimate Beginner's Guide To Real Estate Investing

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This would be an excellent starting point for you. Once you have completed this, you will have a good idea of where to put the 20K to work! 

@Arthur Yu You could invest with a partner that could help be a safetynet until you build up some reserves. If a partner put up the 20% down payment you would have less expensive financing and better cash flow.

Think about picking up properly where you will be going to school. Lots of folks rent houses by the room to students which creates higher cash flow.

Some states consider you a resident if you own a home. That could help reduce your tuition.

It is a great plan! It is called house hacking. Just make sure that you will have no problem covering the entire expense by your self. Then the money that you generate from roommates is all gravy. I would save every penny of it to get into your next property where ever your new job takes you. Spend some time a get to know a few property managers in your area and make sure what you are buying is an easy to rent property that commands a strong rent. I would also want a home convenient for them to manage so you get the best service. If it is way out of their service area it will not visited as much.