All Forum Posts by: Nicholas K.

@James Cole I went with a HELOC and would/will do it again, especially with interest rates going down. Fees, limited term, and loss of tax advantaged growth deterred me from 401k Loan.

Thanks @Allan Smith. I'll take a look. We are trying to structure the deal as simply as possible, which will facilitate any automation efforts, but you're point about not getting there completely is well taken :)

Thanks guys!

@Jacob Miller - Thanks for the suggestion! I'll take a look at Square Business.

@Jacob Sampson - I anticipate that we will potentially have similar partnership agreements, with varying degrees of "ownership" based on a number of factors including who has access to contacts in these mountain towns, who will be providing the "hustle," who will be providing the cash, and many others :) Thus, I wanted to see if I could at least begin putting together systems to support such an endeavor :)

Thanks again Jacob's :)

Hi all,

I posted this previously, but I think I posted it in the wrong spot. Unfortunately, I haven't been able to figure out how to adjust it, so I've decided to post here while I figure it out :)

Just bought my first property, a short-term rental in Colorado. I have a 30% partner and want to know if there are any systems out there that can help automate paying my partner. For example, if I bring in $2000 in a month for 3 rentals ($75 cleaning fee per rental), how could I setup some rule to transfer $532.50 [($2000 - $225 Cleaning Fees) x 30%] to the bank account of my partner?

I have Stessa and Tiller, and have been looking at QuickBooks, but I don't have a lot of experience in this realm. Any guidance is much appreciated!!!

Nick

Hello all,
Just bought my first property, a short-term rental in Colorado. I have a 30% partner and want to know if there are any systems out there that can help automate paying my partner. For example, if I bring in $2000 in a month for 3 rentals ($75 cleaning fee per rental), how could I setup some rule to transfer $532.50 [($2000 - $225 Cleaning Fees) x 30%] to the bank account of my partner?

I have Stessa and Tiller, and have been looking at QuickBooks, but I don't have a lot of experience in this realm. Any guidance is much appreciated!!!

Nick

@Phil Goodwin -- what bank did you use to get that rate and when was it? I used Navy Federal Credit Union at a +90% LTV back in late summer. Th 7% rate I posted was after the most recent interest hikes.

@George Blower -- thanks so much for the insight. Yes, the 401k permits a participant loan, and I can view what the payments would be with principal and interest figures illustrated. Will keep your points in mind as I assess which path(s) to use :)

Hi all,

Long-time lurker but first time poster :) 

I'm looking to buy my first deal and feel lucky enough to have a few options to fund a down payment. I'd like the community's advice/perspective on any of these options, just to ensure I'm not missing anything blatant.

1. Employee Stock Purchase Plan (ESPP): 15% discount at 2 buy periods per year, taking the lower of the price during the beginning and end of the period. The stock has been doing well, but I think many stocks have been doing well, and it just seems inevitable that the dip will come -- "when" is anyone's guess. I believe the 15% discount is essentially wiped off the books by the long-term capital gains taxes, so these funds are made up of the original investment and the stock gains, which has been substantial. I plan on continuing to contribute to ESPP.

2. HELOC: 7% variable rate, 20 year pay period

3. 401k Loan: 6.5% fixed rate, max 5 years. 401k investments are mostly index funds and such. 4.5% employer match. I will continue to contribute to the 401k.

Any suggestions/advice/input is greatly appreciated!

Nick