Beginner in Spokane, WA (Multi-Family, owner occupied)

[Caitlin Daniel]

HI! 

I recently joined and am learning as much as I can. I just put my first offer in! I'm a first time investor and buyer. I decide to move to Spokane Washington and by the time I got here and got a job and am ready to buy a multi-unit house to begin my real estate empire, prices have risen over 20%!! In one year!!

I am about to put an offer on a property. 1950s 1/4 acre lot in a good neighborhood. 2 side-by-side 1b/1ba 490sq feet each. One unit fully renovated in 2019, other unit is in good condition with an updated bathroom, needs kitchen update and W/D. Has a 2 car garage with barn doors and a wood heat stove. Plumbing and electrical have also been updated. No basement. Garage roof leaks, needs a new roof, honestly the whole house looks like it needs a new roof and I think needs new siding. 
Due to the rapidly rising costs of living, rent is also going up so I could likely rent the updated one easily for $800-$1100 and I'll be living in the non-updated unit while I do some sweat equity.

BUT they already had 3 offers the first day it went on the market. Here in Spokane more things are being sold over the first weekend, and for over asking. I offered asking because I'm trying to stay near the 1% rule. I did send a smokin "love letter" to the seller that's owned it since the 90s and currently rents it to family that pays 1/3 market.

I've got one pre-approval letter, I just applied for another one thru my local credit union that I bank with. I have 800 credit so I should be getting the best rates, Looking to do 3% down.

Any advice is appreciated about the home-buying process. Inspectors, insurance, closing costs, etc. I'm a vessel for your knowledge!! Especially if you are an investor in the local Eastern WA area.

Thanks so much! 

[Evan Dobrowski]

Spokane still has deals if you can find properties with basements and convert to up/down duplex.  My family lives in Spokane and this technique is what they have done to acquire duplex rentals.  Lots of houses around the mall that have unfinished basements and the cost of finishing is sweat equity, $4000 permit, $2000 to have a contractor install an egress window, and another $3000 to have separate door installed.  

You not only get a more affordable home because your only paying the finished square footage at the time of purchase.  You also build sweat equity and when your done you have nearly doubled the property value.  My sister did this most recently with a purchase in June 20' completely the below unit in January.  She is now renting the downstairs unit which is 2bed 1 bath and covering her entire mortgage which was based on a $215K purchase price.