All Forum Posts by: Ali Sheik

@Dmitriy Fomichenko   That's what I was concerned with. As far as having reserves it makes a lot of sense. I can see a whole bag of worms opening up if you aren't careful. Thanks for the advice.

@Mark Nolan Thanks for the reply Mark.  Wish I had so many 401ks flush with cash to do that with. Have a 401k transferred from an old account with $230k. Need another $170k. I can probably swing it with cash but was wondering whether this was even possible/legal. I would rather not borrow from it if I do not need to.  

Can one cover the shortfall of a self directed 401k for property purchase with a cash infusion?

@John Vo @Adrian Stamer Thanks for the replies. Appreciate the information and link John. Sure is a big help. I will surely look into going down this path. What really appeals to me is not having any closing costs. Thanks again and good luck!

@John Vo Hi John. Thanks for chiming in. I was under the impression that a HELOC was only given with variable interest and that there wasn't an option for a fixed rate period. If you know of any banks who do this I might consider this as an option.

@Aaron Howell Thanks Aaron. Pretty much what I figured. If I am not mistaken from what I have learned is that income/debt is more important when it comes to SFH or small MFH but if one were to invest in a 5+ apartment (large MF) your income/debt is irrelevant vs. the importance of the income derived from the property itself.

@Jibu V.  @Aaron Howell  Wow, you guys are fast. Thanks for the prompt reply. How about a follow up question as I am trying to educate myself here?

Suppose that I have $200K from cash out refinancing. This is all debt of course as it is a loan I have taken out on my home. How much leverage can I get out of this if I want to plunk on another property?

Hypothetically if I choose to purchase a property for $1 million that $200k would satisfy my 20%. Is this possible or would this be flagged as a 100% loan and this be automoatically rejected? Would it help by using the same bank or another bank to make this transaction possible?

Let's assume that I can pull out approx. $225,000 in equity from my home. Let's also assume that if I do nothing with it I am able to pay the monthly note to satisfy the loan. Seeing that rates are pretty low right now is there an argument against pulling money out, paying down the loan according to the terms and at least getting the tax deduction on the interest while waiting until prospects develop to then use to put a down payment(s) on a property?

@Aaron Mazzrillo. Great suggestion but how could one go about doing that?

@Shawn Torsitano. Thanks for the reply and input. Sounds like a great way to approach it. I bet there is a large trial and error component to this. Best