All Forum Posts by: Sean Burns

Thank you, @Rene Hosman! I have read Short Term Rental, Long Term Wealth- more than once. Excellent read and part of my inspiration. We also have close family friends that have been very successful with STRs in multiple markets. 

And yes, the inherited IRA needs to be drawn down in full by 2030. It was inherited in 2020. I figure I will reinvest it somewhere and it might as well be in real estate.

I appreciate all the tax resources and your wholistic view of the deal.  BPCON is on my radar!

@Tom S.  and @William Thompson, I appreciate the advice and because of it I plan to revisit HELOCs. I shyed away from it because I don't like the idea of variable rate debt.  

@Nicholas L., sure! Challenge welcomed. I have and I think a HELOC or HEL could be another solution here. I suppose I wish I just didn't have so much tied up in retirement accounts; not just the IRA but my 401k that I've invested in considerably. Regarding my time - I've built a successful book of business at my W2 job and that has given me time back in my week to focus on getting started in RE. Regarding likelihood of success- sure, the prospect of failure is real. Perhaps the market is saturated and another strategy is more easily executable. I've educated myself considerably on STRs and feel I understand what's necessary from a p&l standpoint using conservative figures to make it work and I've identified opportunity markets where STRs are not prevalent but the ones that do exist are very profitable. My wife and I are capable DIY'ers and have confidence we can make some tasteful updates that force appreciation and drive ADR in the right property. It's a process and customer service driven model too- a space where I am comfortable and feel I have a good handle.

@Patrick Roberts we're in Huntersville! NoDa is a fun neighborhood. I have considered a HELOC or HEL. I don't like variable rate debt but I suppose if the deal was strong enough to where I cover any reasonable increase in interest rate or know I could pay the debt off quickly, I'd do it. We have a considerable about of equity in our home we could leverage. Just get hung up on the variable rate. I do need to draw the IRA down in full by 2030 with a required rmd annually. Perhaps the HELOC makes more sense and to set the rmd's aside to invest in a second property in 2030.

Hi all, i'm a new member to the forums but i've read several BP books to begin my education process. My wife and I live on the north side of Charlotte, NC with our two little girls and we can't imagine a future where RE investing does not replace my full time W2 work in sales. We've created a buy box and are evaluating how to best finance our first purchase. 

I'm blessed to have received an inherited IRA from a deceased family member and i'm thinking taking a full withdrawal to finance the down payment and furnishings of our first property could be the bold move that gets us running. This would preserve our personal savings "safety net" and we would still retain a healthy 401k. The hard part to swallow is the 20-25% loss to taxes. I'm beginning to feel this is a necessary short-term loss i'm willing to incur to build a business that could produce much greater returns in the long run and allow us to start putting that money to work in the near term.

Thoughts? Should we pull the trigger? Looking forward to connecting!