All Forum Posts by: Brian Adzadi

If you have a good amount of money in your 401K or Pension, have a stable job you don't plan on leaving in 5 years, or don't plan on retiring anytime soon, you can take out a loan from both or either of those retirement funds to use as capital and invest with it.

What I always say to anyone who plans on doing that. Make sure what you are going to invest into gives a greater return on your money than your retirement plan.

@Mike Hamil

Can you define to us what is YOUR definition of taking it to the next level?

Do you want to get more duplexes or start getting apartment syndications?

To take out the equities in these properties, why not do a cash out refinance?

@Nicholas Blaylock

This is where Dave Ramsey's wisdom of "Your income is the most powerful wealth building tool." comes into play. Putting your money into these Money Market Accounts will not gain money for you fast enough to start putting down payments on a rental property.

Do you know what will?

1. Doing overtimes at your job

2. Delivering Pizzas every night

3. Doing Uber at your free time.

Each one of those can easily get you $1,000 a month. That's a lot faster than what a Money Market Account can get you a month. I like Uber as a way to make money because it helps you 2 ways. 1. You are making money 2. You can write off your gas, insurance, maintenance and every other car/Uber related expenses on your taxes to lower your tax liability.

Literally double-dipping without the penalties.

@Ricky Reese

Go through lawyers to do 2 things, 1. Keep everything legal and above board (All T's are crossed and all I's are dotted) 2. Make both parties (you and the owner) happy and have sound mind knowing all necessary steps were taken and no one feels screwed.

@Alejandro Ortiz

Out of state investing has its own risks and benefits but if you set up a good team (property manager, contractors, etc.) you mitigate the risks and reap the rewards. As long as you do your due diligence on the neighborhood you finally decide to invest in you shall do fine.

Now for the suggested areas to invest. I personally feel the Midwest is where its at to invest. Real estate on both sides of the coasts are booming but because of that, investors and developers are slowly going further inland to invest their money.

I would suggest you go there while the market is still cool. Ohio (Cleveland, Toledo, Columbus), Indiana (Indianapolis, Fort Wayne, Lafayette), Missouri (St. Louis, Branson). Make sure the property is near areas that have Universities, Hospitals, or Big tech companies so that you will always have tenants.

@Shadonna N.

Very good point. So yea @Ki Lee, I would definitely forget about rehabbing a former Meth house. All things considered.

@Ki Lee

From my understanding of some articles I've read. Meth houses should be considered like the Scarlet Letter. You stay away from those types of properties. Why? Some of the ingredients to make Meth are volatile and sometimes explosive chemicals. To clean up the property and make sure it is safe to use, you need a specialist who knows how to handle those types of chemicals. People like that are few and far between so you know you are going to pay a hefty price just to clean up alone. And yes, trust and believe, once your buyers find out that the house was a former Meth lab, you best believe the low-ball offers will be coming left and right. Leave it.

@Gavin Wright

Mysmartmove.com is a background check provider that is run by Transunion, the credit bureau company. It was endorsed here on Biggerpockets. I used it, happy with it. It cost $35 for each potential tenant, but the price could change.

@Account Closed

Can you tell me how recently you bought this property to Caliber Home Loans?

@Wendy S.

Please tell me where you are finding a conventional loan for 3%. I had called numerous private mortgage companies on the down payment requirements for rentals and they are all requiring a 15-20% down payment.

Your situation is a little different, you bought the house as a primary residence not as a second home or a rental. So automatically you are going to have a lower down payment requirement. I am talking about those who buying the property as a rental from getgo.