All Forum Posts by: Nick K.

Do I am considering rolling my 401k into an Self Directed IRA to use for a rental property.

The only piece of info I have not came across, is since the title of the rental would be in the IRA's name, and the rent checks would go directly to the IRA.....how do you include things like repairs...capex, etc in this?

Does anyone have any literature on the subject, or even better...experience?

I'm 30, and my 401k is worth around 28k, I'm considering borrowing, cashing it out, or moving it to a self directed ira. Any money I take from it would be to throw towards buy and hold properties as a downpayment.

Thanks for any input!

House hacking is definitely an option I have considered, but I just really don't like having neighbors that close. I have not discounted it all together, still on the table, but more of a last resort for me.

In regards to changing position/fields...I have an associates degree in automotive trchnology, and two bachelors degrees, one in Business Administration, and the other in Computer Science....I've applied to more jobs than I can count. Even with being willing to take a $10k pay cut to start over with a better company and get a higher end position a couple years out, different industry, etc, I cannot find a job within an hour of Wichita. 

I have applied to well over 1500 jobs in the last 4-5 years. I've had dozens of interviews, but there is/was always someone with more experience. This us partly what made me take a harder look at real estate. :)

Welcome to BiggerPockets,

I'm a beginning investor as well. Do you have any experience wholesaling or are you just starting out?

-Nick

Yeah no credit card debt, I thought about side jobs, but my current job makes me literally be on call 24/7, though it's rare I get called when I'm not at work it does happen, and unfortunately it reflects poorly on me if I do not drop what I'm doing to go slave away for the company.

I don't mind working hard for extra money though. 

I'm spending most of my free time learning and reading about real estate and financial analysis. I want to make sure I have time to learn and grow in that area as fast as possible too.

My job just made my position from salary to hourly. So I am picking up OT when it's an option.

Uber is a great option, but I cringe at the thought of letting people I don't know into my car....kind of a car guy :)

Thanka though, definitely something to consider!

I'll keep grinding away at banks and reducing DTI ratio for the time being...

My credit is higher end of "good", and with the one bank that gave me the time of day I tried to leverage the idea of a rental with a considerable amount of equity in it already and it's like it meant nothing to them. That being said... I've ONLY tried 10 banks, I just wanna make sure it's feasible to find a bank willing to lend and I'm not wasting my time. It sounds like it is doable.

Another question for this scenario. I don't have a specific property in mind. I'm looking at properties daily to get an idea of what I can afford, and running the numbers to ensure it would cashflow and be a good buy.....should I have a property that I am willing to move on already before I even prod banks? I told all of them I was looking to be pre-qualified to ensure I had a bank that was willing to work with me....smart move or bad move?

Thank you all for the responses so far!

So you suggest I keep attacking banks? I am definitely willing to do that. 

Looking at where I've been spending my money I think I can shoot to pay off that $9k car loan by next December if I throw all extra money at it.

This still puts my 1 year out from getting towards a rental, which if I run through every bank in town and no one will approve me, then that's what I'll have to do. I'll probably look towards doing this anyways.

So I was wanting some advice.

I'm very close to being ready to buy my first property for a rental.

I've been through 10 banks, finally I found one that gave me the time to day to at least have a discussion with me. He said everything looked fine at a glance and he was ok with the loan. Well apparently he looked harder at my numbers and my DTI ratio is 41%. Their cap is 40% total.

So here is my question....do I move on and continue down the line of asking banks? Do I look at seller financing? I know there are a ton of avenues. I was hoping to get my first property in the next few months to get the ball rolling.

I do not currently have anyone in my life that can help with the financial part of this. Plus with no track history of real estate it puts a little more of a damper on the idea for someone to help invest if I were to find a partner.

My main interest is in Multifamily homes, and buy and hold.

I have one real estate investor in my family, but it's by marriage and I've talked to him one time. I will see him at X-Mas and plan to see if he has any interest in letting me add value for him some how....haven't figured out what I can do for him yet, but hopefully he has a problem I can help solve.

Any suggestions? I will be working hard to reduce my DTI ratio going forward. I have school debt of $40k roughly, I owe $108k on my house, and $9k on my car, no other debts are in my name. I think I can take a good chunk out of those, but I feel like putting off trying to find a property for another year or two to reduce DTI is just an excuse, which I will not fall to. 

Also I did try searching DTI ratio topics on here but all I found was pepole trying to overcome too many rentals already in their name and trying to buy another one....so if anyone has this question/answer already posted I would love the link to read through it.

Thanks!

Welcome to BP Bryon,

I grew up in the Derby area. I am just starting myself in REI, however if I can lend any incite to help for the Derby area please let me know.

I am brand new, but would enjoy attending when I get a chance. My schedule is all over the place, but I am trying to move into REI via rentals

Couldn't agree more with the "why part"! 

I might re-write my goal as if I already achieved it, and let it sink in a few days and see how it works for me.