All Forum Posts by: Chris C.

Personally, I would not get rid of a perfectly functioning appliance because it had some spots on it.  Have you tried cleaning it (or having it cleaned)?  I have some great cleaners that I use for my properties every time I turnover a property and I'm always amazed at what they're able to do.  They make appliances (and everything else) look like new.  Here's an example (before and after photos from an oven in one of my properties):

@Chris C.,

Before you decide to buy a property in your IRA you need to plan for the situation you described. As Brian mentioned most lenders will require 10-15% of the purchase price as reserves be available in your IRA on date of purchase on top of the down-payment, which BTW is typically in the 40% range. The reason it is higher because you must use non-recourse loan in your IRA, conventional loan would not be allowed because IRS rules prohibit you personally guaranteeing the loan for the IRA.

There are only handful of lenders offering such financing, here is a list I was able to assemble over the years:

https://www.biggerpockets.com/blogs/2810/50272-lis...

Also keep in mind that if you use leverage in an IRA, portion of the income will be subject to UBIT (Unrelated Business Income Tax). Not a deal breaker in most cases, but be sure to be aware of this and discuss with your CPA tax implication that your IRA will owe if you decide to go this route.

Self-directed 401k on the other hand is exempt from taxes on leveraged real estate, therefore if you are eligible you may want to explore this option. 

In addition, you should explore other investment options that are good and common for self-directed investing such as private lending, investing into syndication, note funds and private placements. 

Very first step is to get your financing lined up.  Doesn't mean you need a commitment upfront, but you should have a list of potential financing options/people you can go to as soon as you get a deal under contract.

Why not just move the equity you have around? If the Oregon house is cash flowing and it fits your goals, I don't see a need to sell it. 

I've done exactly what you are proposing, just moving equity around and BRRRing, even before that was a thing. The key is to force at least 25% equity as quickly as you can so that you can get all of your cash out and move on to the next deal. Good luck!