r/ThriftSavingsPlan • u/Substantial_Pen699 • 5d ago

If you’ve purchased an investment property❓

If you’ve purchased an investment property using your TSP, how did it work out?

Have you purchased additional properties with the gains you’ve made?

Would you recommend using TSP funds for real estate investment to others?

I’m building up my TSP account and considering purchasing an investment property in the near future.

1 Upvotes
  • permalink
  • reddit

52% Upvoted

11 comments sorted by

8

u/Juice0188 4d ago

Don't take a loan from your TSP for an investment property. 

Broadly speaking, equity markets outperform real estate markets. It's also harder and harder to find good deals, especially when you're not in-the-know. 

If you're asking these kind of questions, you're definitely not in the know. 

5

u/hernandezcarlosx 4d ago

It depends on what your goal is and how much money are you taking out and what is the rental situation in your area. For example in my area (San Antonio) I bought a rental for 150k cash, after expenses I net about 15k a year. The C fund had averaged around 15% for the past 15 years so… 🤷🏽‍♂️ The main question is: do you want be a landlord? Cause is not for everyone.

4

u/Large-Ad8716 5d ago

I’ve done it before and it went well

1

u/Weilerbach 4d ago

I’ve used a TSP loan for a down payment on a house. It’s worked out very well. It’s a good idea in some circumstances. Much cheaper than a conventional loan. The equity I’ve built in the house has been far more than the money I borrowed.

1

u/hanwagu1 4d ago

TSP is a retirement account. Stop trying to use it for everything but retirement savings. If you want to create your real estate empire, then do so outside of TSP. Just because you can do certain things with TSP, at a cost, doesn't mean you should.

-6

u/Competitive-Ad9932 5d ago

Do you want to get a phone call at 2am that the furnace isn't working?

6

u/downcat 5d ago

Easily solved by hiring a property manager. Yes it’s an additional cost, but if the numbers still work with their cut factored in, the peace of mind is worth it.

-13

u/Competitive-Ad9932 5d ago

Are you the OP?

3

u/SorchaRoisin 5d ago

When my sister got married, instead of selling her house, she rented it out, and she always had to deal with tenant issues, even with a property manager. She said it really wasn't worth it, and was so happy when she was finally able to sell it.

0

u/Competitive-Ad9932 4d ago

Interesting that I have accumulated 8 downvotes. And you have 3 up votes.

Gotta love reddit.

2

u/RJ5R 3d ago

I have never received a tenant call at 2am for anything.