All Forum Posts by: Erin Featherstone

Welcome!  This site is such a goldmine and I'm sure you will find some great resources here.  The podcasts and books are fabulous too.  Let me know if you find a good CPA the specializes in real estate also.

Enjoy -

@Jason Murphy

@Lynn Allen

@Tyler Judkins

@David Safeer

@Andy M.

Hello Farmington members, particularly those that are doing buy and hold...

We are picking up a few condos this summer for our long term buy and hold strategy, and we want to find a good CPA.

Have you found a good CPA for your real estate investments?

@Wells Lange What type of two projects did you invest in?

Thanks

@Wells Lange

Thank you.  You are the first person that has given me this honest advice.  We are running numbers both ways, but the non-recourse loan is so restrictive we can only get maybe 1 condo with 40% down and high interest rate, but if we pull it out we can get 2-3 with conventional financing.  We have not made the decision for sure but we are running the numbers and it sure seems what you did makes more sense.

Hi all. I have been doing more research on investing in real estate through rolling over our 401ks and thought I'd share what I have come up with. Hopefully this will be helpful to someone since this is the info I was looking for that I never found. This info comes from a non-recourse lender.

Background: Total we have $140k to invest from our old IRAs. We are looking exclusively at university student housing condos so we will hopefully have a low vacancy rate.

How it works: The non-recourse lender requires a POSITIVE CASH FLOW of 25%.

So when I find a property I want, I give him the purchase price, monthly rental income, and all expenses including taxes, insurance, HOA dues. He puts them into his trusty spreadsheet and starts messing around with the down payment number and the interest rate until he hits the 1.25% debt service cover ratio/cash flow.

So now for an example, we are looking at a 4 bd/4ba condo at $173,000. The estimated rents are $1,300/mo.

To buy this condo with our 401ks and get a 25% cash flow, he has determined we have to put

43% down ($75k)

4.87% rate for a 5/1 ARM

With these conditions we are looking at a $2k cash flow a year, or about $170 a month (they automatically factor in a vacancy rate) or $3k/yr and $260/mo without vacancy.

_____

So for what it's worth, there you go. We have not yet decided if this is the route we want to go, but I thought I would share.

Hi all. I have been doing more research on investing in real estate through rolling over our 401ks and thought I'd share what I have come up with. Hopefully this will be helpful to someone since this is the info I was looking for that I never found. This info comes from a non-recourse lender.

Background: Total we have $140k to invest from our old IRAs. We are looking exclusively at university student housing condos so we will hopefully have a low vacancy rate.

How it works: The non-recourse lender requires a POSITIVE CASH FLOW of 25%.

So when I find a property I want, I give him the purchase price, monthly rental income, and all expenses including taxes, insurance, HOA dues. He puts them into his trusty spreadsheet and starts messing around with the down payment number and the interest rate until he hits the 1.25% debt service cover ratio/cash flow.

So now for an example, we are looking at a 4 bd/4ba condo at $173,000. The estimated rents are $1,300/mo.

To buy this condo with our 401ks and get a 25% cash flow, he has determined we have to put

43% down ($75k)

4.87% rate for a 5/1 ARM

With these conditions we are looking at a $2k cash flow a year, or about $170 a month (they automatically factor in a vacancy rate) or $3k/yr and $260/mo without vacancy.

_____

So for what it's worth, there you go. We have not yet decided if this is the route we want to go, but I thought I would share.

Hi all.  I have been doing more research on investing in real estate through rolling over our 401ks and thought I'd share what I have come up with.  Hopefully this will be helpful to someone since this is the info I was looking for that I never found.  This info comes from a non-recourse lender.

Background: Total we have $140k to invest from our old IRAs.  We are looking exclusively at university student housing condos so we will hopefully have a low vacancy rate.

How it works:  The non-recourse lender requires a POSITIVE CASH FLOW of 25%.

So when I find a property I want, I give him the purchase price, monthly rental income, and all expenses including taxes, insurance, HOA dues. He puts them into his trusty spreadsheet and starts messing around with the down payment number and the interest rate until he hits the 1.25% debt service cover ratio/cash flow.

So now for an example, we are looking at a 4 bd/4ba condo at $173,000.  The estimated rents are $1,300/mo.

To buy this condo with our 401ks and get a 25% cash flow, he has determined we have to put

43% down ($75k)

4.87% rate for a 5/1 ARM

With these conditions we are looking at a $2k cash flow a year, or about $170 a month (they automatically factor in a vacancy rate) or $3k/yr and $260/mo without vacancy.

_____

So for what it's worth, there you go.  We have not yet decided if this is the route we want to go, but I thought I would share.

@Dmitriy Fomichenko

Thanks for reaching out and the advice.  I will shoot you an email and let's set up a time to chat on the phone.  Thanks