All Forum Posts by: Deanna Joy

My findings are much the same as yours, whether looking at listed, wholesale or even off market. The only way I could manage to make a purchase work at the beginning of 2020 was to a) buy a property with deferred maintenance b) focus on house hacking and c) leverage my flexibility in living situation to increase the rents I could bring in. Similar to what Erik is contemplating in his comment above, I now live in the MIL unit I have set up in the basement of my SFR and rent the rest of the house by the room. This gives me some privacy, as my unit is distinct from the rest of the house, other than when my roomies come down to do laundry. This works well for me, but most people don't have these kinds of options. Basically, the point I'm making is that most deals take a significant amount of creativity to work out in this area. I'm already scratching my head on how I can possibly make another buy and hold in this area work and looking at other markets to go to.

Glad you got a good deal! I'm in business lending at Global Credit Union and we do secured LOC on investment properties. In the future I suggest inquiring with commercial/business lending at a given institution if home lending turns you away. :)

Whoops, I take it back. This is a 5-unit so you're looking at commercial financing anyway!

Jeff,
You are correct that the zoning will be a sticking point for lenders, however, given the granted use, I see no reason why the property couldn't be financed. However, this issue may change the underwriting and potentially make qualification for a loan more difficult. I would recommend a couple of things. First, be upfront with any potential buyers and make sure they disclose the zoning issue to their lender. No point going halfway through the process only to discover that this particular lender is unwilling to finance because of this. If they ask right out of the gate, and secure their lender's agreement, then it shouldn't be a problem. The other issue for your potential buyers is that, even if they don't intend to rebuild, they may have trouble getting permits for other projects, such as additions or remodels, because of the zoning issue. This is something they need to know as they consider purchasing the property.

I hope this helps. Keep in mind that my perspective is from the commercial lending side. If you want to know from a residential lender, I recommend reaching out to a few local banks and credit unions to inquire about the issue specifically. I can put you in touch with the manager of the RE department here at Global CU if that would be useful.

If you're going to buy a SFH that you will occupy, BECU has a first time homebuyer grant program that requires you to put 1% down and they pay 2%, up to $6,500. The requirements in that circumstance are simple, straightforward and relatively painless. Even if you don't qualify for the grant, however, BECU is a good option to go with. GESA also does a lot of residential lending in the area, and both credit unions have a Home Loan Center in the area, which you should find convenient. The credit union where I work, Global, does a lot of residential lending also, and I can confirm they will work with investors whether you intend to occupy or not. I work on the commercial side of lending, but I can provide contact info for the residential RE Manager, if you like. Send me a private message, in that case. Whatever you choose, though, you will generally get better treatment and terms, and develop a stronger relationship with a lender at a credit union than a bank, because of the cooperative ownership and not-for-profit structure of the former. Good luck!

I'm an aspiring investor in the area, anyway. 

Next Wednesday, downtown after work hours is good for me! That, or afternoon/lunchtime and I can head back to work after.

Also, perhaps this is a silly question, but is there any way to respond to posts individually, or do replies always fall in a chronological/thread order?

Kevin,

That tickles me! If I may ask, what's your primary instrument?

Thanks for the encouragement. I am curious how Spokane stacks up against other areas in terms of both market and resources for investors. I'm perfectly happy to start up here, because here is where I am. One wonders, however, where in the world would be most ideal for this kind of venture. 

How long have you been researching and/or looking for your first deal and what time frame do you expect to make your beginning?