All Forum Posts by: Account Closed

What Mike M. said - and if you end up stuck with the property in 5 years, could you live with the terms after that?

i meant "husband" not "htsbsbd". Good for nothing auto correct! :)

@Marc Cunningham I agree husbands and wives should be able to live together, but if one doesn't meet the rules it's not fair to ask the landlord and other tenants to expose themselves to the potential risk and drama. That's what I meant by its best for everyone if you stick to the rules. I'm this case that may mean the wife and htsbsbd go live together somewhere else. Win win in my book.

Exceptions invite discrimination claims. Stick to your rules! That's best for everyone. Good luck!

There will always be people who say you can't or shouldn't do something. They may be jealous, they may be ignorant...or they may be right. Hear his concerns and weigh them for yourself. But my advice would be to surround yourself with people who don't say "you can't", but with people who say "how can you?". Being on BP is a great start. I'd also highly recommend plugging into a local REI club or two to connect with like minded people who can help you on your "how" without being the proverbial turd in the punch bowl. Good luck!

@Timothy Riley talked to my cpa. Long story short I'm opting to do an SDIRA for passive investments only. Putting rental properties in there doesn't really meet my goals (cash flow for early retirement) so I'm using alternate funding sources to do that outside of the ira.  My cpa's advice was if at all possible to do rental properties outside of a SDIRA, though as everyone here has also said there are a few ways it is possible. But my strong sense is - find another way to get into rental properties, especially if you're going the RE Professional route. Good luck!

Update: we decided to roll into a SDIRA but for passive investments. We're going to tap the equity in our home to do rental properties. Reasoning: we're looking into rental properties for cash flow for (very) early retirement, which just wouldn't be an option with any established retirement plan. But we still don't want to lose the momentum my 401k has, so we'll just use a SDIRA to balance out investment mix overall.  Thanks everyone for the excellent feedback - you all helped shape our decision!

Read Duplexes, Triplexes and Quads by Larry Loftis. From the BP reading list. Also check out the BP reading list. =). Good luck!

I had one on my house for the first year (realtor gift, American Home Shield) and it was great. But the house was 36 years old. If there are borderline issues (furnace or water heater about to go) then (if you don't negotiate those fixes into the deal already) it might be worth it. Otherwise save the few hundred bucks.

My advice is don't focus on rules. Define your goals and criteria first. For me cash flow is most important (ie must be positive), and of course making sure I don't overpay for my first property. Apart from that I'm not too fussed about whether it meets some of the "rules" out there. Good luck!