All Forum Posts by: Rene Hosman
Rene Hosman has started 60 posts and replied 456 times.
Post: Raising Rents Without Losing Tenants? Here's the Strategy That Worked for Me
- Rental Property Investor
- Denver, CO
- Posts 563
- Votes 595
If you missed it - view the recording here!
Post: Mike's Deal of the Day - July 8th 2025 Amazon Prime Day+
- Rental Property Investor
- Denver, CO
- Posts 563
- Votes 595
Quote from @Andrew Steffens:
wife says we "need" a new robot vac - lmk if you see any deals haha
I posted one above ^^^^
Post: Cashing out 401k for start-up capital
- Rental Property Investor
- Denver, CO
- Posts 563
- Votes 595
I think you're asking the right questions and you're smart to be hesitant to take this option. I can't tell you which option to choose but I am curious if you cashed out your 401k and a great deal doesn't come across your desk are you going to be upset you cashed out your 401k?? Because cashing out and not finding the right deal is really the lesser of two evils IF you cash out your account. If you cash out your account and you are going to be frustrated and upset that you don't find a good deal, odds are you'll jump into a bad (meaning risky) deal.
IMO there are two kinds of bad deals, deals that are actually bad, they make no sense on paper but blind optimism and likely relying on the wrong professionals carries you through to the closing table. The other kind of "bad" deal is a deal that could work but is too risky for your circumstance and risk tolerance. People have different risk tolerances and different abilities to weather storms. The great thing about real estate is that if you can weather the storms in the beginning (say first 5-8 years) you'll likely make it through just fine and eventually it can turn into a "good" deal as rents grow and properties appreciate.
This is why I say cashing out on your 401k and having to sit on that 28k is the lesser of two potential evils if you do decide to cash out. Because the alternative is pushing yourself to buy something since you put pressure on yourself and you get in a mindset of "I cashed out and if I don't buy I failed"
TLDR: If you're willing to cash out your 401k, be comfortable with taking that loss in the immediate future and while it can motivate you to get into real estate, don't let it push you into a bad deal. By the time you cash out your 401k the fees and taxes are a sunk cost and you have to be willing to let that go. Don't throw good money after bad deals.
Secondly: Are you able to do a self directed 401k? Then you can use the money to invest in real estate without having to withdraw and pay penalties. Equity trust can help answer questions about that! They talk a lot about self direct IRAs but self direct 401k's can be done, even self directed HSAs can be done too! Can you rent out your current house and find a deal to move into for only 5% down? Think about finding a large square footage single family house, and splitting it into a duplex with separate entrance if you're not willing to house hack and get a roommate. Can split ranch style homes in half side-by-side or split multi floor homes into up-down duplexes. Might be a more risk tolerable option and require a lower down payment.
Post: WIN a Ticket to BPCON + Free Year of Pro | 7 Deals in 7 Days Challenge
- Rental Property Investor
- Denver, CO
- Posts 563
- Votes 595
Congrats to our winner @Cynthia Leite for completing and winning the 7 deals in 7 days challenge!!
Post: The Chicago Appreciation Rate
- Rental Property Investor
- Denver, CO
- Posts 563
- Votes 595
@James Wise @Brie Schmidt Just a heads up I can see the engineering team is working on the photo upload ticket currently so hopefully this issue will be fully fixed very shortly!!
Post: Why I Stopped Talking About My Goals with Friends and Family
- Rental Property Investor
- Denver, CO
- Posts 563
- Votes 595
Quote from @Becca Brown:
Totally agree! This concept applies to many walks of life, but property management is especially tough if no one in your circles has experience.
I'm pretty new to rentals too (and BP, haha, hence the lack of presence on here). First gen college grad & no one in my family has any idea how PM works, so I often get well-meaning comments about how I'm gambling with my savings. As other commenters mentioned, there's simply a lack of experience and knowledge. It's rarely malicious, but it is frustrating.
Find a supportive community and lean on them. People on here are great and always supportive, so it seems we're in the right place! Protect your peace too :)
Glad you came here to help find a supportive community Becca!!
Post: Mike's Deal of the Day - July 8th 2025 Amazon Prime Day+
- Rental Property Investor
- Denver, CO
- Posts 563
- Votes 595
Great post Mike!! I'm sorry about your brother in law, thinking of your family...
I know many will balk at me for spending so much on a vacuum but this auto-vac/auto-mop combo actually changed my life, coming home to such clean floors every day makes me so happy! Especially while living in a live-and-flip since things here get pretty dusty from work. I've had three robo vacuums before and this one is by far the best. Got one last year for Prime Day, this year I got a second one for my upstairs floor!!
NARWAL Freo Pro Robot Vacuum and Mop Combo, Tangle Free Robot Mop $359
https://www.amazon.com/NARWAL-Powerful-Self-Emptying-Obstacl...
Post: Raising Rents Without Losing Tenants? Here's the Strategy That Worked for Me
- Rental Property Investor
- Denver, CO
- Posts 563
- Votes 595
Quote from @Becca F.:
Great topic. Looking forward to the webinar.
I was informed by a couple of investor friends that they don't raise rents on their good existing tenants. I was completely shocked - this was coming from people in California, one who has kept the rent the same for at least 10 years (probably 15 years now). Their reasoning was: I bought the property in 2008 or in the 1990s, no mortgage now or very low mortgage payments, tenant is great and I don't them to lose a place to live. I appreciate that they're being charitable but this isn't a good business decision.
Don't they have increasing insurance payments (that's hitting us in fire zones especially) even though property taxes might be low (Prop. 13 is max 2% increase a year in California since 1978 unless a significant renovation with permits is done causing the property to be re-assessed)? Also deferred maintenance if a tenant has been living there for 20+ years.
So I kept the rent the same on my Indiana property for the next lease renewal while my property taxes increase significantly each year. I increased it the following years. I'm slightly under market now.
I'm trying to find a balance of how much to raise it: 3%, 5%, 6%, 10% (which is a lot for Midwest) but I did raise it close to the max allowed by local laws for my California properties.
I think asking about how to strike that balance is a great question for discussion at this webinar Becca!!
Post: Raising Rents Without Losing Tenants? Here's the Strategy That Worked for Me
- Rental Property Investor
- Denver, CO
- Posts 563
- Votes 595
See you there Dion!
Post: The Chicago Appreciation Rate
- Rental Property Investor
- Denver, CO
- Posts 563
- Votes 595
Thanks y'all I'll report a bug!