All Forum Posts by: Ryan Logsdon

It's great that it was appraised for 49% above asking. I'd check on that since it came from the seller's mouth.

Maybe you'll be able to cash it out. I'd make some calls to lenders with the property address, and maybe they can give quick insight.

Maybe an Ohio area person can discuss the reliability of Columbus appraisals.

But as it stands, hoping that someone will let you cash-out on an outdated appraisal isn't an investment. That's a gamble.

Hi Jimmy,

Not accounting for existing issues / deferred maintenance, you're at 13.2% ROI. That's not a bad number in itself, except since it's in a war zone, what are you really getting out of the property? You could easily get that with any number of non-C-class properties.

Ryan

That was outstanding, Albert Hasson. Simple, elegant logic.

Hi Adam Shpall,

You actually can't touch the cashflow either, but you can certainly sell, buy more, reinvest it still within your IRA. You won't be able to cash out until you reach 59 1/2 years old (I believe that's the age .. that's still decades off for me). This strategy is to get additional properties under your control with even higher tax incentives.

And you can amass many properties through your IRA if you do it creatively.

Ryan

One way to make it easier is to have your IRA purchase properties.

There are drawbacks. You'll need about 50% down. You'll be limited in your selection of servicing agencies that can work with retirement funds. You can't touch the money (must stay at "arm's length"), but you can direct all funds as necessary. But it's an alternative method to reaching your goal.

And if you do the PM work yourself on the other properties, and you draw a salary, you can further fund your IRA from the existing properties ... so there's an additional tax benefit for you there.

*edit* Adding clarification as to why it's easier. It's not counted as one of your 1st 4 properties. It's not actually your property at all. It belongs to your IRA.

James H. I understand that my stance is not popular, and I will not waver. In you telling me to wear my big boy pants, I only feel sorrow for you. Belittling's not the way.

Matt Devincenzo it's a gross generalization. What is it anyone's business to make assumptions on the financials of a stranger?

And keep in mind that these "poor" strangers are the landlord's clients.

It's quite an arrogant statement, and it does nothing to further communication and discussion. It only serves to reinforce the stereotype that landlords are out of touch with their tenants.

In a word, it's ignorant.

This is the first vile thing I've read on BP since joining. To the author, shame on you.

Tommy Benson, the biggest problem is that you live in California. An LLC in California can be quite a burden.

1) at $800 per year, it bites away at a good part of your cashflow if you're looking at a single fam or similar; and that $800 fee is assessed yearly
2) no bank will lend to an LLC; LLCs need credit, so if you really want this route, you can buy a "shelved LLC" with existing credit history.
3) there's a fanciful belief that LLCs protect their owners; they merely protect the assets that belong to the LLC; you're still going to be liable if someone gets hurt on your property, and it's going to come down to how good of a lawyer you have
4) if you buy a property and transfer it to your LLC, that can trigger the due-on-sale clause (though I understand this is rare for a bank to call you on it)

Now as Lynn M. and Kurt K. have mentioned, there's a great alternative, the umbrella policy. Unless you're at fault for the other person's injury, you're protected. If you need a lawyer to defend you, the insurance company provides one as well.

Gary West to save you a good 2/3's of that time in the future, take a look back over your spreadsheet, and see if the similarities start popping out at you between neighboring properties (ie: between properties 3, 4, & 5, or between 4, 5, & 6). You should see a pattern emerge if your prices are reasonable similar. The pattern will be in:

1) how long it takes to repay a loan, and
2) how quickly your passive cashflow accelerates.

This should give you clear idea if the method you're trying out will work, and it'll save you an evening of math.