457 loan

[Atretes1]

So, I paid back a 457 loan early this year on a hunch that the market would do better than the percentage I was paying. My market earnings are twice what the interest rate would have been year to date. My hunch turned out right. I was only using it to BRRR a rental property. I also have access to more HELOC money so I don't plan on on taking any more retirement loans. Food for thought if you want to take a loan from retirement.

[EasyMoney00]

I would personally never gamble with my future. I feel the same way about using a house as collateral. Not an option in my book. I'm glad things worked out in your favor.

[ua_guy]

So, I paid back a 457 loan early this year on a hunch that the market would do better than the percentage I was paying. My market earnings are twice what the interest rate would have been year to date. My hunch turned out right. I was only using it to BRRR a rental property. I also have access to more HELOC money so I don't plan on on taking any more retirement loans. Food for thought if you want to take a loan from retirement.

Nicely done.

I agree that borrowing from retirement is risky, but you were doing it to improve the position of another asset that's likely gaining in value, and/or setting you up for long-term rental income. Win/win!

[LivingAlmostLarge]

How do you BRRR a rental?

[Atretes1]

How do you BRRR a rental?

(BRRRR - buy, rehab, rent, refinance and repeat) Buy a rundown property with a temporary loan or cash. Rehab it then refi it on the new value and rent it.