All Forum Posts by: Yariel Rivera

@David Fernandez

Thank you for your reply. That’s a good idea. It’ll give me good practice running numbers. 

@Steve Bracero

Thanks for your reply. Considering my area I think a MF might be easier to get into because the prices on them don’t seem to be that much higher than SF. I definitely need to do more research though. As far as target area I’ll have to go a bit far from my area because prices are too high around me, assuming I only use savings and don’t touch the heloc or retirement. 

Hello, 

My wife and I are just starting our journey towards owning investment properties and would love some advice on our current plan.

First about us- I'm 32 years old, she's 33, and we have a 9 year old daughter. We live in the Greater Boston area. Our household income is around 110k. We own a SFH with a balance of 284k @ 4.37%. Our monthly payment is $1952 ( principal, interest, ins, and taxes). The house is worth somewhere between 450k-500k. We have a HELOC for about 74k (haven't touched yet). Our credit card debt is around 10k (most of it is in interest free accounts that will be paid off this year). We have about 100k in retirement accounts (401k, IRA). Our credit scores are both in the mid 700s. I think this covers our financial situation.

Our short term goal is to purchase an investment property for renting out within the next 3 years. I'm leaning towards SFH over MFH because it seems easier for a 1st timer. I am open to both though if the level of difficulty really isn't that different.

Our long term goal is to be able to live off of the income from several properties.

Our plan for the short term goal is simply putting $200 a week into a savings account. That will give us $10,400 after year 1, $20,800 after year 2, and $31,200 after year 3. At this point we feel we should have enough for a down payment on an investment property. My wife has brought up the idea of using retirement money, but I'm against that idea because of the penalty and the loss of compounding. I would consider using the HELOC, but first we plan to do some necessary work on our primary residence (roof, siding, windows, and other small work).

What are your thoughts on our situation and plan?  Any help is appreciated.  Thank you in advance.

 Pharmaceutical manufacturing 

I just started a new job and am in the process of setting up my retirement. My new employer offers a 401k and they match 233% up to 3% of my base pay. I'm able to contribute to that as pre-tax or roth. I will definitely contribute at least 3% to take advantage of the 233% matching, but should I use pre-tax or roth?

I also have 2 accounts that I want to rollover. Both are pre-tax accounts. One account has around 40k and the other has around 17k. Should I roll these into my employer's 401k? Should I roll them into an ira?

Based on research I've done I'm thinking of having my 401k be a roth account and rolling the other accounts into a traditional ira. I thought about rolling them into a roth and making the 401k a traditional, but I don't have the funds to pay the taxes on the rollover conversion. I could also just roll everything into the 401k and open a separate roth ira.

Some information that may be important:

I'm 31 years old

My salary is around 50k

My spouse makes around 57k

8 year old daughter

Own a house (appraised at 420k; owe around 285k)

Thanks in advance.