All Forum Posts by: Amy Greger

3 years later...

Sold both Tacoma multi-family properties after holding for less than 3 years. Great returns on both sales. 

NWI properties are nice and steady. 30+ doors and great cashflow. Surprisingly that market has picked up quite a bit. May cash out a couple this year. 

I ended up with a non-recourse loan with First Western Federal Savings Bank www.myiralender.com.  Took out the loan in Jan 2017 and selling the property next week!  

My loan terms: 50% LTV, 5.5% 10/1 ARM 25 years

Could have gone with 5/1, but who knew I'd be selling in less than 3 years. :) 

Options (in 2017)

Term: 20 years on Fixed rate loan and 25 years on Adjustable rate loans

Rate: 4.25% on 3/1 ARM, 4.875% on 5/1 ARM, 5.5% on 10/1 ARM, or 6.25% Fixed

Fee: 1% origination fee plus $300 processing and $300 underwriting fee

Thanks for the response @Scott Smith!  Seems like every attorney has a different opinion.  :)  

Re: rental income from WA properties... isn't that considered "doing business" in WA therefore no state income tax even though it's owned by a Nevada Series LLC?

We live in Washington State (no income tax) and own properties in Washington and Indiana. The properties are currently held in our names. Our estate planning attorney recommended setting up a Series LLC in State of Nevada to hold all WA and IN properties.

Questions:

WA State does not have Series LLC. In case of litigation, will the Nevada Series LLC provide the liability protection limited to one property? Or will WA State treat the Series LLC as a "normal" LLC?

Should we set up a Series LLC in Indiana to hold the IN properties? And separate LLCs for the WA properties?

Any concerns with rental income generated by the WA properties subject to Nevada state income tax since it's owned by a Nevada Series LLC?

I'm also in Seattle.  I did a combination of a few suggestions in this thread in the last 12 months.

- sold and cashed out 3 Seattle properties in this crazy market

- refinance my house and took out a line of credit. Didn't want to be too aggressive/over leverage on my home... have a 200K HELOC. This is my "play money".

- 1031 exchanged 2 Seattle condos for 1 SFH and a 11-unit apartment building in NW Indiana (outside Chicago) as well as a triplex in Tacoma. All 3 properties cashflow.

- with the HELOC...

- bought a short sale with cash in Indiana.  Will refi cash out after 6 months.

- bought a 10-unit apartment building in Indiana with a commercial mortgage

- bought a SFH in Indiana with cash - in the process of refi cash out. After cash out, money goes back to HELOC.

I am self-employed. No W-2 income. I'm taking out commercial mortgages even on the SFH. The bank does not care about my income as long as the property is profitable / meet DSCR criteria.

I have properties in Whiting and Hammond.  Solid blue collar neighborhoods.  In the process of buying our first property in East Chicago - which apparently has "pockets" of war zones but also pockets that are not bad. Great cash flow properties.

Hi Chris,

I'm also an out-of-state investor with buy and hold properties in Lake County. Nothing in Gary though.  What did you mean by "with a lot of opportunities in Gary"?

Amy

Hi Shawn,

What did you mean by #1 - be sure you REALLY want to buy a duplex in the midwest?  Can you send links to the posts if you have discussed already.

Thanks!

Amy

We listed a First Hill condo for 330K last month.  Had 15 offers, and based on the names, at least 6 were Chinese mostly cash offers. Sold for 370K cash with 35K Ernest money.  Great seller's market, but I'm not putting the proceeds back in Seattle.  Can't afford anything decent.  I am cashing out and buying in NW Indiana for cash flow.  

Like @Lane Kawaoka said, can't eat appreciation. :)  

@Bob Green How much higher are the rates for unconventional vs conventional?  Do you work with all sizes mortgage?