All Forum Posts by: Lane McDonald

I'm just starting in real estate as a single young man, I have one rental and own my primary residence, my primary residence is 1300 sq feet 3bed 2bath house and the mortgage is 1500/mo. I've been looking for a small studio size 1bed 1bath house to buy to keep my personal monthly expenses down but not many are around. I was wondering if it makes sense for me to rent an apartment at 500/mo so I can turn my current primary residence into a mid-term rental where I think it can make about 3000/mo, so theoretically I'm missing out on 1500mo in cashflow but by not doing this but I won't be building equity in a personal residence. There is also the possibility of using my current primary residences big side yard to build myself a small 1-2 bed 1bath house to live in instead. My main thing is I don't need a personal residence this big and to have that much of a personal mortgage while also leaving potentially 1500mo cashflow on the table. Let me know what you guys think!!

I have 30k in my 401k from before I knew that real estate would retire me. I want to use it for a down payment. I know I can loan against it but I'd rather not as to not hurt my cashflow. I can take it out directly but will lose a lot of it to taxes. What would you recommend I do? Am I missing something? anything helps thanks!

I am looking to get another deal secured soon. I have 30k in my 401k that I put in before I knew that real estate would retire me instead. I want to use that money for a down payment but don't know the best route to access it without taking a massive hit. I know I can loan against it but I'd rather not as it would hurt my cashflow, I want it in cash. I figure I can just take it all out, but I'll take a big hit on it, and it will bump me in a higher tax bracket. What should I do/what would you do/any advice at all? or just let me know if there's something I'm missing. Thanks!