All Forum Posts by: Westin Hudnall

@Albert Bui 

Update : I called Fidelity today; my plan only allows for me to take out 50% of my personal contributions. I have contributed 18 of the 55k in my acount so I can take a loan for just 9k. I did that today @ 5% (my only option as well). I think I am going to use 13k of my 120k line of credit to pay off the remainder.

@David R. 

I understand and dont take offense. I watch over my business like a hawk but kinda just ballpark my personal finances while my wife pays all the bills. Its just laziness I guess; I could be a lot more diligent if I wanted and I usually am if things start going south; when things are good I tend to relax my diligence. lol

Thanks for the input

@Albert Bui 

Sounds like the way to go. I found out today I actually owe just 23k ; not 35 as originally thought. So if I have 55k and are allowed to take out 1/2 I will be able to pay off the 23k left.

Then I could pay it back at 4.5 % (or close to) fixed for 15 years wth my interests payments going back 100% to my 401 k.

Am I understanding correctly how this works?

**Sounds to good to be true **

@Albert Bui 

Interesting thought you brought up about a loan. Can you explain how a loan works in my instance as I've never heard of a 401k loan. I have $55,000 in the account and am fully vested.

I guess I can refi the amount left on my primary significantly reducing my debt to income then use a loan to purchase 3 or 4 properties ? How much of a loan could I take out if I have $55,000 and what are the typical terms ?

@Cal C. 

You are dead on. I have a $120,000 line if credit that I've used to purchase my 9 rentals. The type of higher end rentals I purchase in my market don't produce the amount of equity needed to not have any out of pocket after getting a 75% loan of the rehabbed value on top of the cash/HELOC rental purchase.

That's why I need cash flow. Another thought was to use part of my HELOC to pay off my home but then it would be harder to purchase in cash the type/price of properties I like to buy.

@Account Closed I'm not savvy in the market .

I honestly don't even look at it unless I see a loss.

I think I'm in the most conservative yet stable option available by my company. pemco tot  or something like that

here's my logic : let me know if this makes sense or not everyone or whether there is a better way to achieve my goal:

Goal : buy as many buy and hold properties as possible

Reason : Although my 401k might average 5-10% per year my 9 rentals are averaging over 20% returns per year and with my current salary I can not afford down payments for more rentals but would be able to with my home free and clear. The 3 refi's that I will qualify for with my new debt being removed(paying off primary mortgage) will add $200-$250 cash flow per property per month.

Does this clarify ? Does it seem like a good idea now or still no?

@Albert Bui 

I have $55,000 in my 401 K and would need $35,000 of it to pay off the rest of the mortgage.

@Albert Bui @Brie Schmidt @Dawn Anastasi  @Jay Hinrichs 

Contemplating doing this right away : curious your thoughts.

There is a but if a silver lining here as well. I'm refying 3 of my adjustable rate properties into fixed rate and don't qualify for all the refi's without clearing this debt as well.  

any thoughts ?