All Forum Posts by: Drew Vukov

I actually just saw one listed on homepath in my area that is under 300 sq ft.! A free standing single family residence. Weird part is it has an attached/built in one car garage. If homepath lists it low enough I might try and buy it and convert the garage to GLA, maybe make it a small 2 bedroom.

I use bill pay through TD Bank for my duplex. Its free and quick for both parties. The tenant can set it up on their end to pay automatically on a certain date. I don't know if you can send out a payment request, I have never needed to. Chase does it as well, I have had tenants pay me through Chase bill pay in the past, its also free and quicker than TD.

Both parties need to have an account with the same bank I believe. And tenants don't need your account number, just either your email or phone number that you register with the account.

@Bryan N. thanks. That's what I'm going to do. I already have one duplex and I'm in contract on two other investment properties right now. I just found a good deal and thought using a TSP loan might be a viable option. But I can't make the numbers work, at least in the short term.

@Brie Schmidt there are two types of TSP loans. One for purchase of a primary residence this requires documentation and proof, with loan terms up to 30 years. The other type is a general purpose loan, it requires no docs, and can be used for any purpose including purchasing non occupied property

Just wondering if anyone has used a loan like that ( low interest, 5 year term, paying yourself back) to buy a rental property? How did it work out for you, were you able  to get it to cash flow immediately ? 

TSP is the Feds 401K. I have been considering taking a loan out to purchase a rental property free and clear. The problem is loan repayment term is 5 years, which pretty much kills any cash flow. The interest rate is only 2.25% and I would be paying my self back.

I had upped my TSP contribution to the legal limits the last few years in anticipation using the funds to buy a rental at some point, but now I realize I should have kept the contributions at an amount that match employer contributions and saved the rest.

Has anyone used this strategy (TSP or 401K loan) to buy an investment home? Were you still able to cash flow? What was the outcome?

Lackawanna County, but I'm still not a 100% yet on this deal.

@Euri Lorenzo You should be able to find cash decent cash flowing properties in reading, but you will have almost no appreciation. I would recommend contacting a few PM's that work in the area because there are many places in reading you wouldn't want to buy in.

10 years is a long time. Instead of borrowing from your 401K, why not refi your current residence take out 50k, push the mortgage back out to 30 years. You should have positive cash-flow right away and the money needed for a new residence. You may not like that idea because you only have 10 years left on the loan. But use leverage to your advantage. A cash flowing property that also has strong appreciation is a great asset. I wouldn't sell it it was me.  

Thanks @Michael Slabitcher thats what I thought initially. This deal is in Pennsylvania though. My mother in law sold her house there earlier this year and stated they didn't use a lawyer, it wasn't required in PA. That sounded weird to me. I'll look into some real estate attorneys in PA.

I am considering making a cash offer on a property (a duplex) I found that is not listed and the owner is only asking whats left on his note, 29K. It should have an ARV of 55k-65K. But I would hold it and use it as a rental.

So if the offer is accepted whats the next step? Theres no broker involved in this deal.