All Forum Posts by: Todd Goedeke

What are homes in your neighborhood leasing for as a STVR?

@Tushar 

@Tushar P. I agree with your reasoning behind opening a business to allow you more flexibility in managing IRA transfers into a Solo 401k. In addition if converting a real estate investment in your Solo 401k from IRA to Roth you may be eligible to discount conversion value.

Ask your tax atty about forming an LLC to manage your properties. This will make you and your spouse eligible for a Solo 401k.

Do not construe this comment as tax advice. Seek a tax atty or small business CPA for professional advice.

Investors all over the country are buying RE with their Solo 401k and get cash on cash returns in the high teens.

@ Julie McCoy, lenders do indeed consider STVR income. As a commercial loan with a Master lease in place lenders consider that lease income. And for retirement account investors with enough down they will make a non recourse loan.

@Cass Lowrie You can still invest a Solo 401k in real estate with leverage. Consider using a Master lease which is triple net to achieve passive cash on cash returns of 15-17%. 

Also, if you own a property in your Solo 401k you want to flip as long as all you do is hire contractors to do work, list it for rent upon completion and then sell you could legally do flip in Solo 401k. 

Any attorneys or 401k advisors please comment.

What is wrong with rolling over wife s Retirement plan to Solo 401k of Flipping company in her name?

@ Mike Brecko assuming STRs are allowed by zoning, you can eliminate the concerns of others who replied. You should ask this question in Solo 401k or self directed IRA forum. STR and STVRs are considered a business and as such RE investors looking for a passive RE investment can t manage a business within their retirement plan. Thus, they use Master lease or triple net lease or some lease thereof to achieve 10-12 % return based on property value.

Have a tenant sign a commercial lease on your property. It may even be triple net, where leasee pays taxes and insurance and interior maintenance. Require you be listed as additional insured on insurance policy.

There is less wear and tear on a STR or STVR than in a LTR.They are cleaned after each stay.. Clientele is controlled to some extent depending on type of property you own. Property is only rented 60-70% of time.. Ability and experience of leasee will be number 1 factor in success. Cleanliness and reviews are important to gain bookings.

Make sure tenant has had success running a STR business.

Get a commercial loan for your STVR, non recourse.

@will Gaston, look up. Properties in  olumbia on Airbnb. Some hosts will be property management companies.

@Scott Carson, does Quest offer a checkbook LLC? How about a Solo 401k?