All Forum Posts by: Kishore P.

@Edward N.

I would love to connect with like-minded people who are interested in Multi-Family Homes.

Glad you took the initiative.

Thanks

Sam Gergley

@Sam Gergley

I would advise against rolling your wife's current 401 K into her New job's 401 K.

The reason being the New Custodian charges Management Fees and other marketing charges on the Account balance.

You have a lot more options and control by rolling the 401 K into a Roll Over IRA or Self Directed IRA.

Good Luck.

@Sam Gergley:

IRS makes an exception when you buy your first home. However, it comes with a 10 % penalty and income taxes. You have to question Why? would you pay a penalty to use your own money.

You are going down the right track with a plan to buy a Duplex with an FHA Loan. I instead ask you to consider a quadplex instead if they are available in your market. FHA typically mandate a 3.5 % down payments.

With regards to your 401 K consider rolling into a Self Directed IRA and investing in Investment Property.

It's important to learn how? Self Directed IRA works. Check out:

https://www.thestreet.com/story/13625516/1/avoid-these-5-traps-when-buying-real-estate-in-self-directed-iras.html

Good Luck.

@John Leavell:

Appreciate, your input on Depreciation, I get your explanation.

Per the article, http://www.zillow.com/blog/rental-property-depreci...

Investors could depreciate using Real Estate Investment from year 1 using (a) General Depreciation  System (GDS) or (b) Alternative Depreciation System (ADS). In most cases GDS is applicable.

I agree with you depreciation may not be considered as cash flow.

However sure does effect the bottom line for the Investment in Real Estate.

Hello All:

Background:

I'm currently working towards my Relator License for the State of Michigan.
In one such class, the instructor highlighted the importance of analyzing Real Estate deals with  Depreciation for Building Value of Real Estate and how? that could improve the Cash flow on an annual basis.

Question:
Does BP Calculators (BURR, and Rental) in particular; used to analyze deals both for Single Family and Multi Family, account for Depreciation.

If the calculators don't account for depreciation, in my view Performa and Cash Flow would be discounted and that is not a true reflection of cash flow on an annual basis.

Attached is an article that highlights Rental Property Depreciation
https://www.biggerpockets.com/topics/new?forum_id=...

Looking for feedback from experienced Investors who have a thorough understanding in this subject matter.

Thank You
Sincerely

Kishore. P

@Samuel Watts, Something is amiss here in your calculation.

Search for video how to use Calculators in BP, Recommend to run your numbers again.

In my view you have to annualize your for example (310*12) mortgage, Taxes, PMI, Vacancy, and Repairs.

Good Luck

@John Van Uytven Good Luck, let us know how? you made out with the deal.

John Van Uytven

Unfortunately, you have not provided enough information for me to offer you an educated opinion.

What is your goal for the property, Is the this a FLIP Project, BRRR or Buy and Hold?

Hope you have a contingency of inspection to recover your EMD in the event you want to walk away from the deal.

I'm going on the limb here. As long as this new discovered Foundation Repair still computes with the ARV threshold of 70 % then you should be ok.

Good Luck and let us know what was the outcome.

Regards

Lastly, experts advise investors not to be emotionally attached to the property !

@Art Maydan :

Like others have mentioned there are potentially two causes or a combination situation with Circuit Breaker to trip: 1) faulty Circuit Breaker (2) Overloaded circuit. I feel it's more the latter.

Check out YouTube to replace with a like Circuit Breaker, DO NOT Replace a higher AMP Circuit Breaker ie 20 AMP breaker on a 15 Amp Circuit it's a Fire Hazard. Replace the 15 AMP Breaker with a newer 15 Amp one. The current circuit breaker could be doing its job.

Working with Electricity can be intimidating.

Ask your neighbors for Referrals and interview skilled trades (plumber, painter, Carpenter, Roofing , drywall installer, bricklayer, concrete contractor, and floor installer in your area. Visit your local REIA and ask a Licensed General Contractor for Referrals for a list of skilled trades folks above.

Good Luck !

Art Maydan

Congratulations ! on you first investment.

Check out, https://www.youtube.com/watch?v=W7ihk9RGgVM

Suggest you check out YouTube for any future DIY Home Improvement Projects.

Good Luck