All Forum Posts by: Dale Carlson

Home Depot has several Vinyl Plank options from Allure that is around $1.69/sf.  they cut and snap easily, and would estimate a 600 sf place to take about 4 hours, conservatively.  These things will last.  You can try to gouge it with your keys, and it doesnt even show up.  Rated for bathrooms and kitchens, too.  

What is your beef with going block?  it really is the best scenario for bathrooms in this situation.  Almost any other situation, and you are almost guaranteeing yourself a mold, mildew and/or rot problem.  

I am not sure if you were going to put a surround or tile in, but if you went with tile, you could go right up to the block.  any ledge should be at a small pitch, and you would eliminate any future issues.  

just my 2 cents

Yea, it really just comes down to the penalty, i think.  You are going to pay the taxes no matter what.  So I am thinking it comes down to the fact that this deal will cost me an extra $3300?  I will have to run the numbers and add that in, i guess.  i am not sure if i am thinking of it correctly, though.

That is true, i did not include the cap ex, maint, and vacancy. There arent other utilities. I wanted to give you the variables to give a picture. You can fill in the blanks with typical numbers. I just want to be clear that it would not be cashing in my entire IRA, it would just be about 10% of it. It seems like the property is a strong enough property, that i could justify doing it, paying the penalty, and get a great start on the journey. Over the next 3 years, it would pay for itself, and set me up with more properties?

yea...i did think of that.  However it would not allow me to use the income.  My overall goal is to replace as much as my w2 income as possible as soon as possible.  

I have one property with a partner that we paid cash with.  It is a modest $300/mo for each of us.

NOW - i have an IRA that i would love to use on a couple of duplexes to really get my feet wet individually. but i am curious if you would do this for this type of deal.

2 duplexes sold as a package.

Total for both - 100,000

Total rents - 2400/mo

Total water bills - 200/mo

Management if i dont want to - 240/mo

NOI - 1960

My mortgage, taxes, insurance - 680

Cash flow - about 1280.

Down payment with closing would be $33,000.  

Now in order to fund the down payment, i would need to take the funds out of my IRA and pay the taxes on that and penalties of 10%.

All the numbers on the deal look great, but i am not sure how to look at the cashing in the IRA part. This property looks like it would make way more than the money being in my IRA.

I would then have decent cash flow for a year or two until i can save up another down payment.

What do you think?