All Forum Posts by: Craig Jeppesen

If you do a withdrawal the answer is no. If you do a loan the answer is yes as long as you pay it off before you quit or are fired.

If you have an old 401k you can roll it over to a self directed IRA or solo 401k and invest with this new retirement Acct, but you have to leave all the gains in the account and can't use the money until you turn 59 and 1/2. Everything has to stay in the retirement plan.

As others have said try it out part time first to see if you like it and learn your market. Most realtors quit after a few years because it is hard to make it. There are usually a few big names that do like 80% of the deals.

Also don’t discount your benefits and future growth potential at your w2. You won’t get insurance or retirement being a realtor. I would think being an engineer you would have a six figure income potential in the next 5-7 years if you hustle.

 2 years is not necessarily true, all lenders are a little different. Check around.

The max dti is going to be around 42% or so; but you probably don’t want to get that high. 

Interest on cash out refinances are usually about 25 bpts above normal rates, and terms are usually the same; 10,15,20,30 years.

It will he hard to get more than 10 properties this way but yes you can do what you are suggesting for a while.

Yes you will need to have good credit, good dti ratio and rental history if you want to count your rental income in the dti calculation.

 Sorry but investors don’t speculate. I have made real 50% returns from re not interested in speculation. Most speculators crash and burn eventually.

Why don’t you counter offer for an extra $2500 to try an break even. Give it a try if not just sell.

I will stick with real estate and stocks. I am an investor not a speculator. Good luck.

If it was me, I would pay down the mortgage on your primary to get rid of PMI and get your lower rate. Those saying you get a zero roi don't know what they are talking about. Your return is in savings not income but it is still a return. You also have less risk on your personal mortgage and a lower dti for future investments. Use the rest of the cash and your new found cash flow to invest.

 Do you want to be an investor or a speculator? To be a successful investor you need to think of the long term not just what might happen in the short term. Find an investment that is a good deal in today’s market that has potential to withstand downturns, and has opportunity to appreciate in both value and cash flow over the next several years. Also don’t over extend yourself and you will be fine in any market. Market downturns happen but you only lose if you sell during the downturn. Invest in all markets and take advantage of dollar cost averaging and compound interest and don’t get scared and sell in a downturn.

You will need a partner or access to equity in another property, or a private loan, but no one will want to be in second position. If you didn’t have a dti issue you could do a hard money loan and then refinance in 6 months.