All Forum Posts by: Kristel Daugherty

Quote from @Rachna Condos:

I completely agree. We have never purchased a property so far away and it is overwhelming to think about how to furnish and manage it and finding local cleaners as well as making sure there is someone that can deal with any issues that arise for guests is very important to me.  If you know someone in Bremerton who would be good for this please let me know. 

Thanks for responding.

 I would recommend reaching out to Melissa Smith. She's our local STR expert in Bremerton (Kitsap County and surrounding areas in general). I've had her come speak to our local investor group, and she's well-respected in the community.

I'm a Realtor and investor in Bremerton, so if you need anything else in the area I'd be happy to be a resource for you!

I love it here too.  I moved up from the Bay Area about 5 years ago, and yes - prices and rents have jumped significantly. For the local population it was harsh and they're still adjusting. As someone that's traveled (13 year Army veteran), I saw the value and still think prices here are extremely reasonable for all the natural beauty and access to amenities.

Interest rates have priced a lot of first time home buyers out of the markets. Locally in Kitsap, I'm finding that if you can make the entry-level housing numbers work for you, there's great opportunity. I'm also seeing opportunity in people "locked into" their low rates, but having a life circumstance changing their needs. Not a lot of foreclosure activity because of all the equity gains, but that may change in the coming years with the loans on the mortgages written in the last 1-2 years being much higher (aka normal compared to pre-COVID).

Investment Info:

Other buy & hold investment.

Purchase price: $402,000
Cash invested: $80,000

Purchased 2 lakefront lots - one developed with a SFR and the other vacant. Each lot is .5-.75 acres without HOA restrictions.

What made you interested in investing in this type of deal?

Excellent locations and purchased at about 50% of ARV. The combination of both adjacent lots was over 100' of waterfront and about 1.25 acres. Highly desirable as a rental with the potential to convert the vacant lot to additional STR units.

How did you find this deal and how did you negotiate it?

Off-market deal through a local wholesaler

How did you finance this deal?

Hard money with 20% down

How did you add value to the deal?

Still in progress!

What was the outcome?

We fell in love with the location and turned our downtown houses into a rental instead - and we now occupy the lakehouse. Oops!! HAHA

Lessons learned? Challenges?

Refi from hard money into long-term owner-occupied financing was super tricky. I would have negotiated longer terms upfront to get conventional financing upfront. The 20% down terms were the same and I think we could've still put together the deal because it allowed the tenant time to vacate (the terms of the contract was to allow the tenant up to 90 days to vacate, so extending closing for that would have potentially worked).

Welcome @Dru Babcock !

A great place to learn more about WA real estate investing and finding deals and connections is our local REIA - https://www.reapsweb.com and checking out some of our Zoom meetings if you can.

There's some great pages on Facebook that you can find deals from other investors, and if you're looking for turnkey there's always the MLS (Zillow, Redfin, etc will get you access to those).

If you want a specific search setup, reach out and I can get that started based on the criteria you're looking for too.

As someone that moved up from CA a few years ago, I was curious why you're looking at WA instead of other long-distance locations?

Quote from @Juanito De Dios:

Quote from @Kristel Daugherty:

Congrats @Juanito De Dios! Getting started is half the battle.

I see @Nathan Gesner gave you a good book recommendation. For our local laws as well as other resources (like blank forms for use) check out RHAWA - it's the Rental Housing Association of Washington. I use their forms for my rentals, and its nice to always have an up-to-date resource that's already lawyer-reviewed and drafted.

For rent collection, there are a LOT of resources out there. I do long-term rentals, so I have recurring invoicing setup through Quickbooks which can also handle my accounting. For maintenance - I schedule maintenance walk-throughs at least once a year, if not twice, and keep in regular contact with my tenants.

Since you're interested in STR/MTR, some of those tools may come in handy. Others may be provided by the platform that you're advertising on online. You can also pop in to one of our local REIA groups to network with other investors. I lead a group in Bremerton - you can check out the calendar of all events at reapsweb.com

Hope that helps!

 Thank you for the resources Kristel! I will look into it. I have heard of REAPS before. Sometimes you guys meet in the Cloverleaf if I'm not mistaken.

 We sure do! Our next meeting is April 3rd at the Cloverleaf. I'm bringing in a panel of expert real estate investors with decades of experience across many different strategies. Could be a great one for you to catch! Register at the website - the first meeting is free. :)

Congrats @Juanito De Dios! Getting started is half the battle.

I see @Nathan Gesner gave you a good book recommendation. For our local laws as well as other resources (like blank forms for use) check out RHAWA - it's the Rental Housing Association of Washington. I use their forms for my rentals, and its nice to always have an up-to-date resource that's already lawyer-reviewed and drafted.

For rent collection, there are a LOT of resources out there. I do long-term rentals, so I have recurring invoicing setup through Quickbooks which can also handle my accounting. For maintenance - I schedule maintenance walk-throughs at least once a year, if not twice, and keep in regular contact with my tenants.

Since you're interested in STR/MTR, some of those tools may come in handy. Others may be provided by the platform that you're advertising on online. You can also pop in to one of our local REIA groups to network with other investors. I lead a group in Bremerton - you can check out the calendar of all events at reapsweb.com

Hope that helps!

Hi @Shaydon Childers - have you checked out any of the local REIAs? This Thursday we have a panel focused exclusively on Wholesaling and Novations - check it out. https://www.reapsweb.com/index.php?option=com_jevents&ta...

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I would love to give you a better answer, but what I've found is - its the one you'll use (and your team will use).

I had a great SOP that I drafted during COVID in Adobe InDesign. I was familiar with it because of my design background, and it is super powerful for being able to put in links and have a nice format consistently. My first admin struggled with the program and as a result never used it.

Moving forward, I'm having everything moved into Google Docs. It's accessible from computer and mobile. It's user-friendly. Its basic formatting ultimately does everything that's needed, and I'll be able to manage things like an index with links.

There are a host of other topics about SOPs - I found this one to be insightful. Have you done a search for similar topics?

https://www.biggerpockets.com/...

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $200,000
Cash invested: $70,000
Sale price: $425,000

First joint venture / partnership and basically a lesson-churning machine! This was a charming two-story 1930s home that had fallen into disrepair and overwhelmed the previous homeowners.

How did you find this deal and how did you negotiate it?

Off-market deal with a wholesaler.

How did you finance this deal?

he partner found the deal and funded the purchase.

How did you add value to the deal?

Our contribution was getting the work done. We split the profits equally.

What was the outcome?

Purchase price: $205,000
Rehab costs: $70,000
Holding costs: $45,000

Sale price: $425,000
Commissions, Buyer's Closing Costs, our Closing Costs: $45,000

Profit to split: $60,000

Lessons learned? Challenges?

Lots of Lessons! The highlights:
1 - Get the JV in writing.
2 - Know the money terms, even if you're not the money partner.
3 - Track expenses in an easy way.
4 - Lathe and plaster is hard work! ...and so is drywall!
5 - Communication and trust will make or break your partnerships.
6 - Do quality work you can stand behind.