All Forum Posts by: Karen O.

First, let's make sure you understand that here at BP, SDIRAs are usually referring to those accounts offered by outfits like CamaPlan, Entrust Group and Equity Trust among others.  These orgs offer the opportunity to invest in 'alternatives' to stocks and bonds.  

Though you can definitely "self direct" investments in an IRA/IRA rollover account at Schwab, Vanguard, Merrill Lynch and Fidelity, these companies don't allow for investing in RE, notes, private lending and such.

Secondly, keeping funds in an 401K plan isn't the issue in this thread.  Josue has $ in a 401k of a "former" employer and he wants to access it.  The option I suggest is to roll it into his current employer's plan where he could consolidate his funds and have more control of it.

Also, by it being in his former employer plan, the primary ways to get to it are to cashout (penalties and taxes due), rollover to a traditional IRA at bank or Schwab type entity, rollover to alternative SDIRA at Equity Trust type entity, or rollover to current employer plan. At current employer plan he can at least access some via loan where he can't do that with the other options. (He should confirm loans are available in his current plan before deciding).

Still, every individual is different and should speak to a professional to identify their best options before moving forward with a decision that may be irrevocable.

Hope this helps.

Unless you're just wanting out of the broader stock market, rolling the former assets into your current employer's plan could be an option.  By combining, you at least get everything in one place making it easier to manage and track.

Alternatively, if you aren't an accredited investor, setting up an SDIRA and lending to others may be the best way to invest in RE without triggering withdrawal taxes and penalties or becoming involved in prohibited transactions.

A sit down with a professional, like @Carl Fischer might also get you on the right track.

Good luck

Moving funds from former employer's 401k to a rollover IRA or SDIRA is a no brainer. And either type of account would go a long way to giving you control.

Cashing out takes more thought when IRS will take a 10% penalty plus 25-35% in taxes leaving you with a lot less than you have now.

We're I in your shoes, I would move but I would not cash out.

You don't say where your property is or how old it is. If in MA, almost everything in the state is old. So, most of it is grandfathered in. 

If on city water, the only thing that comes to mind, might be a backflow preventer which a lot of cities now require or lead pipes.

Still, the plumber works for you and should be able to explain clearly the NCC / reportable violation requiring inspection and an immediate fix.

If he can't, cancel the appointment and get a different plumber.

Having purchased at auction, I highly recommend as a new investor, this not be your first effort without a seasoned pro by your side.  

In fact, consider finding your pro first and letting them take the lead while you take the back seat to learn.

A local bank may be holding your loans in their portfolio so the cap on # of loans they'll float you is higher than if you had a fed backed loan.  

FHA will allow one or two loans depending on circumstances. FNMA will allow up to 10. But a private local bank that doesn't recapitalize by selling their loans to FNMA may allow more.

If there's natural gas for the water heater, I would consider retrofitting to a gas heater. 

There may be state or utility credits available.  

As for the windows, if basically solid, I'd do the plastic window kit for this winter and look to insulate especially the window cavities and caulk when it gets warm.

Another great option, Mike.  Thanks.

Uh oh.  I hadn't thought of the possibility the treads might not be oak.  Before stripping them all, I will do exactly this.  Thanks.

In my project, the stairs leading up are in good shape but require refinishing.  The risers & treads were painted beige and black (down the center). They appear to be oak hardwood.

The stairs to the lower level had to be rebuilt (didn't meet code).  They are new unfinished oak hardwood.

I know I'm painting the risers white.   But I've gone back and forth on what to do about the treads. 

Either strip the upper treads then stain/poly both sets or prime/paint both sets black.  

I don't think I can go wrong with either but wonder if I might be missing something like the amount of work involved.

The only other wood trim in the house are wood stair bannisters with a clear coat of poly. Everything else is painted white.

How would you finish/refinish the treads?

Thanks for your thoughts.