All Forum Posts by: Allen Clark

I have done this a little bit in Seattle as I was curious if it would be more lucrative than longer term rentals. Make sure you know the local tax laws if it is important to you to stay legal. You may be required to collect sales tax but it depends on your jurisdiction. This is your responsibility and AirBnB will not know the rules for your city. For Seattle the rules were clear and easy to decipher. 

@Melissa Melia when I price too low I do get over 20+ responses. When that happens I take a breath and raise the price. Went from $2,800 to $3,500 recently as I was just priced too low. Ideally I want < 5 responses then I know I am priced about right. 

For my places in Seattle I have researched rents only through Craigslist ads. I have also found my renters for premium priced houses through Craigslist. I guess the efficacy of Craigslist varies around the country? I work with many in their 20s and all only use Craigslist when looking for housing. I posted on Postlets as well but, here in Seattle, Craigslist rules. 

Rents are going up so quick that I charged a premium a year ago and now I am under market. I will raise by 27% in the new year when my current tenants leave. Affordable is a real problem in Seattle.

All my personal banking is with a Seattle based credit union. My mortgages are with a local Seattle based bank as well. They have the ability to write portfolio loans, although I have not needed those yet. My mortgage banker knows me and know that I am cash flowing positive on the places I have. She knows that I will not buy a place if I cannot cash flow positive. I think (but I am new at this) that will help in the future. 

As a Canadian who has lived in the USA for 13 years now I really do not understand why anyone would bank at BofA or banks like that. The local credit unions are fantastic and my experience with the local bank for mortgages has been equally good. 

@Bryan Hancock. Yes! Being new here I am fairly stunned by the number of people that post that they have no money but want to invest. Shouldn't the required thinking be work hard, save money, then invest the savings?

Here in Seattle we have the Department of Planning and Development (DPD). The big frustration is that they are VERY slow to issue permits. Once you have a permit though, I have found them to be very reasonable. With a 1922 house there were times we could not meet the current code while we were updating and they let us get it to where it was safe and then we passed. I wish they would staff up but otherwise I am happy they're there to have us pass inspection!

Yes, thanks all for the points to consider. On my house in Lower Queen Anne I have put money into it and brought it up to date (new flooring, new furnace, new tankless water heater, new windows, new counters, etc.). The location is premium so I know it will rent well and it will just be a matter of price. My other house across from Seattle U is also a very good location and will rent. I keep the places updated and well maintained as I just do not have the temperament to let them run down. 

However, having a demanding full time job and three kids take up time. So, I have to remember to go slowly and not add too much. I like my full time job and the money it provides. 

I may add this other house in if the price is right. I will wait and see. With the comments above I can see I am pretty well positioned for a coming downturn. 

I have really enjoyed taking a 1922 brick house in Lower Queen Anne, turning it into a permitted legal duplex, and renting it for a premium. It's been a lot of fun and a ton of learning. I would like to do that a few more times but will remember to take my time and relax. No rush here. 

Water/sewer does have to stay in the owner's name. I pass on the costs to my tenants and they pay. I PM my places so I watch the account online to make sure they pay. If they're late a friendly reminder does the trick. 

Some people include it in the rent but I did not want to do that since the bill can fluctuate with consumption. 

It's a good point @Alex Chin. I am new to this and in this year have bought two places. One for $350k across the street from Seattle U and one for $550k in Lower Queen Anne. The rentability on both is through the roof so I start thinking that I should do more. But I think the smart thing is to pause. See if the red hot market cools off a bit in the next year and then decide whether I should buy more. However, if this house for $750k comes to me for $650k then I might have to buy it. 

My partner and I work full time downtown at demanding jobs so having the rentals close to downtown is important. It makes them easy to rent and they cash flow quickly. I know there are better deals farther from Seattle but that would take more time that I am not willing to invest at this point. 

I do think about the next downturn and my theory there is that as long as my cash reserves are strong and the rentability is high then I'll be fine. These places will always rent (I think) but it is just a matter of price. 

Would love additional views on how best to structure my small portfolio in order to be best positioned for a downturn that will surely come. I am 46 so I have lived through a few big recessions but never with investment real estate in my portfolio. 

@Brian Fouts and all - would love to meet up at the next REI meeting and say hi. When do you go and where?

"But the risk of losing one month's rent is too traumatic to even think about."

Ummm, vacancies happen. If there is this much stress with churning the unit perhaps she should think about selling? It sounds like she is not cut out for being a landlord.

I do not see much of a conundrum here. I would wait until the tenants moved out. Then give it a thorough scrub and perhaps even paint. Then show it for higher rent.