All Forum Posts by: Michael Slockers

@Matthew Gray maybe try a side hustle to build some down payment?

Or owner finance...

Or partnership...

Or cheap house buy in cash?

Or househack?

Do you have any money to put towards it? Are you living a lifestyle that allows you to save money aggressively?

Let me know if I can help or if you have any other specific questions!

@Steven Lam hello there!

Are you looking to fix and rent? Or just buy rent-ready?

What price point are you needing to get into? That will determine area, contractors, lenders, and agents...

@Judy P.

Totally agree

Even could offer the seller 5k down, total purchase price at 28k (sweeten the deal). The remaining 23k even amortized at five years would only be 466 per month at 8%. In that case the seller would be making 1000 per year in interest plus the principal back.

If you can't get them to bite, why not just go rent something?

Gotta get creative sometimes...

@Michael Carbajal if one of your dozen strategies is owner finance as-is I'd go that route.

Managing this rehab will give you gray hair! Trust me!

@Justin Reyes

I'm shocked at how much response this question has received!

If you still work there, I say take a loan against it. Little risk there.

If you don't still work there and want to cash out, I say sure, go for it as your last option only. And it should never be your last option. 😉

A very important point is whether you invested it as a Roth or not. Roth contributions can be pulled out tax and penalty free (because you already paid taxes on them). Again, that only works if you are no longer with that employer.

There are a hundred ways to invest without pulling this money out, as the others have mentioned...

@Ben Smith shoot me a message and I'll give you a couple names.

@Dave Binder I think having the open conversation is the first step. Everything is a negotiation and you control the deal right?

What are your goals on this and other properties? You are offering to trade your time each month for a higher equity.... They are offering you completely passive equity from this point forward. That sounds great to me. That would free your time up to find more deals instead of dealing with tenants and toilets.

What other exit options do you have? Could you wholesale it?

@Toshiki Hoshino It means in no way can you or your family benefit. Any benefit from the investment must be to your SDIRA and not to you.

Example: I'm doing a SDIRA flip in broken arrow Oklahoma. We buy the house and there is a nice mower in the backyard. I want it. But since that would be Benefit to me directly, I'm not gonna get it 😉.

Likewise all bills paid on this house must come from my SDIRA and all profit must go into my SDIRA.

Good input on this overall.

I would not ignore the issue. Your property will have smells and pests that will make an impact on its rentability.

The diaper thing got me. Honestly if a house is filthy enough, at some point child protective services need to be contacted because they are not properly taking care of their children. That's a whole separate mess.

Be direct with the tenants that they aren't meeting your standards for care of the property.

And all this has happened in the last 8 months that you have owned it? What did it look like before?

@Nathan Braithwaite

Why not just have your GC go and provided a hard estimate?

Or make an offer and see if they will budget that much. Likely not going to happen.

If you are willing to go up to 68k on the rehab (as you mentioned to be at 80% all in) then you could probably make it work but with no real info on the extent of repairs you are doing, no photos, etc anyone on BP would just be guessing concerning the actually of your numbers.

If you are bankable I'd suggest find another source for funding, hard money eats up too much of your budget.

Best of luck!