What strategy is working for you in Washington State?

[Evan Mack]

Hey all,

I run affordable housing for homeless Veterans and their families in King County - I love what I do and love developing and running apartment complexes for the organization I work for, but now I want to develop my own portfolio as well. 

I've been running deals through the calculators for practice but want to get an idea from all of you what you find is working in our area. 

I understand that every market is great for different strategies, so what has been working for you and where? 

[Curtis Bidwell]

@Evan Mack Market conditions don’t really change my strategy.  There are still deals if you know what your looking for.  

I’m currently working on a mid-size complex that was on mls for several months.  It was under contract at least 2 other times, failing primarily due to its inability to debt service based on current rents -which are significantly under market. 

 I like these kind of deals.  They don’t make sense on the surface (leading to less competition), but if you know your market and can arrange favorable financing you can do REALLY well.  

Once stabilized rents will increase $385/unit and the value will almost double! 

On this deal I will do 25% down, interest only for the first year of a 5 year adjustable note giving me time to get rents closer to market (which I estimate at 12-18 months).  Actual debt service is only .98 but with interest only it jumps to 1.38!  

Bottom line: the deals aren’t typically announced as such.  Know your market, know your lender, review lots of listings, be ready when you see the difference between what is and what should be.