All Forum Posts by: Jeremy Paschedag

Hello, while I'm waiting on money to be transferred to my SDIRA I'm wanting to get some info.

My SDIRA currently doesn't have any properties. My plan is to buy a MFR cash, rehab, rent, refi. On the refi, am I correct in that I can only get up to 65% back due to the SDIRA? If so, I'm not sure I'd be able to get what will be put into it. Would it make more sense after the first property refi, to buy the next properties with 25% down and use BRRRR from there forward until I'm near my reserves?

What are your thoughts on pulling all of my money out of my SDIRA/401k's, take the hit, then use BRRRR?

Thanks!

1. No way around that, that I have seen.

2.  Because of 1, you have at least 6 months to complete the rehab.  You can do the refi once rehab is complete.  If you have a multi-unit, get one unit complete as quick as possible and get a tenant to start income.

If you have a self-directed IRA, you can do next to none of the rehab. If you do not have this, then it depends on your local building/housing regulations. Generally speaking, siding repair, painting, counters are all things you can do.

In addition to what has previously been mentioned, the fixtures may have dry rotted O-rings.  If you're lucky, you can simply replace them.  If not, the fixture may need to be replaced.

Welcome to BP!  There is LOTS of good information on this site.

I would say so.  Good luck to you!

I do not use a PM, but how many units are you talking about?  If its a quadplex or less, you can manage it yourself.  But I'd recommend finding a handyman in that area so you don't have to make the trek.

If you can, put enough down to avoid PMI (property mortgage insurance). I believe that's around 22%. For a rental that you aren't living in, you need 20% already.

 By doing bimonthly payments takes a 15 year note to 12 years, or a 30 year to 21.  If you were to do this and do an extra month payment each year, maybe you could get that 15 year down to 10.  My bank called me and pitched the bimonthly.  So I'm doing it.  The bank takes the money twice a month.  I don't have to do anything.

What about buying 4 houses at, or below, $40k, and spend $10k in each fixing them and renting.  Then in a year or so, you'll be able to buy another one.  Then keep repeating until you are where you want to be financially?

If you by a bunch with mortgages, you will not make much until they are paid off.

Just my $0.02.

Is the consensus to insure the cash value?  Or are there better rates for replacement cost?