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Got my 401k match and possible new 2 flat

March 14th, 2016 at 10:28 pm

HI all
I got my 401k match from last year. approx $3650.. nice!

I am trying to get my entire 401k in this year by July in case my contract ends (but do not think it will). it also forces me to live on much less which is good and I will continue at once I am complete w the 401k deductions (approx July)

I am looking at a 2 flat, contract sale
occupied , price $72,500, total rent $1750 ($900 and $850)
With all expenses (water bill, tax, maintenance escrow, insurance and mgmt) the cap rate is over 14%. Seller will sell with $25k down and finance the rest over 4 years,. payments $1018

I did an inspection (cost $450) and seller is fixing a big list of items I asked for . I should say this is a seller referred by the property manager and she is wanting to sell all her properties and move to a different area. First floor unit just prepped for new tenant too.

So i will re-inspect property Friday (my list of items) and see if it makes sense then.

Inspections are SO WORTH it. even if listing is 'as is'. I wish I had done then on the '6 homes' but live and learn. Smile

Rachael

7 Responses to “Got my 401k match and possible new 2 flat”

  1. Bluebird Says:

    Great news on the 401k match! The 2 flat sounds very promising, hope it works out!

  2. livingalmostlarge Says:

    Did you have to buy the 6 homes without an inspection?

  3. Rachael777 Says:

    I did not have to buy the homes without an inspection but I made a newbie error and assumed since they were sold 'as is' there was no point. Currently I do inspections on all homes and have found that people give credits, fix items and lower prices even on 'as is' properties if you come at them with a good inspection. I am looking forward now but had I know that then I likely could have gotten price decreases on the 6 homes. It is what it is now and I have property I would not otherwise have so am fine.. but am smarter now.

  4. househopeful Says:

    Out of curiosity if you were to leave the position, would you get match on 2016 contributions? or would you have to have worked the entire year to get it? I had a previous employer that would deposit the match in Feb for the prior year. If you were not employed 12/31 of that prior year, you did not get the match.

  5. Rachael777 Says:

    I checked that when I got brought on again. If I get cut before year end I still get the match but only on 3% of what I earned so if I get cut in July..I will only have earned 55% or something percent of expected earnings for the year.. so based on earnings not on my contributions but I asked exactly that.

    Hoping this contract extends. LOTS Of hours but starting to wear on me big time.. but again trying to save as much as I can and pay off this 3 unit in the next 23 months and LIVe. I am slighting myself a little on the 'lving' and need to seriously reduce stress and increase.. work is sapping me big time

  6. LivingAlmostLarge Says:

    Interesting I also see a lot of as-is homes non negotiation. I always thought you'd have an inspection to know what you potential costs are going in and see with all repairs if you could still turn a profit.

  7. LivingAlmostLarge Says:

    How did you find a 2 flat deal with such great cap rate?

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