All Forum Posts by: John McAuley

Thanks for the replies everyone.

Hey Guys,

I had several expenses this year associated with homes that we ultimately did not close on (inspections, termite inspections, etc.). Are those treated like normal business expenses against my LLC for tax purposes or how exactly will those be handled? Thanks.

John

Thanks for the feedback!  I was thinking about installing it throughout the house and the only reason I was using carpet in the bedrooms is because everyone says that people want carpet in them.  I think I'm with you and I'll install LVT everywhere and be done with it.  Thanks again @Christian Bors

Hey Everyone,

We got a great deal on a SFH to use as a long term rental and are working through the repairs with my contractor. My contractor flips houses too and has been very helpful in terms of the repairs we need to make it a great rental. All of the flooring has to be replaced and I had indicated I wanted laminate flooring in all but the bedrooms. He suggested I look into LVT (Luxury Vinyl Tiles) instead of laminate. Does anyone have experience with this and do you think it is a good choice for a rental. Since I have to do all of the flooring now, I want to do it in a way that will hold up the best with renters. The house is pretty much all carpet now except for vinyl in the kitchen. Thanks for the feedback.

John

I've read a few things in past forum posts suggesting that the EMD won't be returned to an investor on a Fannie property. Is that truly the case? We are under contract on a Fannie property and our due diligence period is about to expire. We may pull out of the deal by end of week but I was wondering about the EMD. We put $1000 EMD and of course asked for the due diligence period for inspections, etc.. Thanks for the help.

John

OK, thanks for the responses.

Hi Guys,

Would it be possible for me to purchase a home with my Solo 401k, fix it up, then flip it to an LLC I use for my buy and hold rentals? Basically I would use the funds in the 401k to purchase my deals, fix them up with funds in the 401k as well, then sell them for a profit to my LLC which would then rent them out long term. Not sure if this is legal but was something I was thinking about tonight, trying to figure out the best way to use those funds to advance my holdings. Thanks.

John

Hello,

We are under contract for a Fannie property that we plan to use as a rental.  The inspection revealed both intact and particularized asbestos underneath the house and in the closet which houses the old/decommissioned furnace.  We plan to put a deadbolt on the closet with the old furnace to prevent renter access to it, and part of our exit strategy was to actually turn that room into a new laundry room when we sell it and get the washer/dryer out of the kitchen area (it is a fairly large closet).  My question is does Fannie have any responsibility to take care of the asbestos prior to sale?  The house of course is being sold as is but for an environmental hazard, I didn't know if there were specific rules around that.  Should I ask them to perform the removal or ask for an amended contract?  Would they do that?  Because of the deal, I am willing to take some of it on myself long term, but wanted to get thoughts on whether you thought Fannie would/should help in this situation.  Thanks.

John

OK, thanks everyone.  So I suppose then the best way to do this is to just keep the asset in a Solo 401k and get my portfolio lender to agree to a non-recourse loan, keeping the asset and profits in the retirement account without incurring additional tax burden.  This is assuming I want to use leverage and not purchase the properties for all cash.  Do I have that right?  Thanks again.

Hey Everyone,

If I transferred some assets to either a SD IRA or Solo 401k, would I be able to provide a mortgage loan to myself as an investment? In other words, could I go buy rental properties using my own SD IRA or Solo 401k as the bank? If so, which has the advantage? I've read some about buying the properties within both types using mortgages and how the income is treated differently due to some profits coming from your money and some coming from the banks. So I understand that, but just wondering if there are other ways to structure this so that I retain ownership of these properties outside of the retirement account. Thanks for any insight.

John