All Forum Posts by: Andrew Gingerich

Hi BP Community, 

Looking for a bit of advice here. I am currently trying to close on a single family home that has a mother in law (MIL) home in the back. The homes are metered separately. 

The appraisal just came back and we were told that although the property is zoned for multifamily, the MIL does not meet legal set back and is effectively on the property line. The zoning requires that the MIL be 15 feet setback from the property line. As such, the appraiser will complete the appraisal as "Legal- non conforming". As I understand it, if the MIL was damaged or burned down, we would not be able to rebuild it. 

The property is a good one is likely to meet or exceed the 1% rule, which is really good in my REI area. The property is also in an area close to downtown that is ripe for gentrification over the long haul.

The appraisal however gives me pause. 

I'm going to call the insurance company and make sure they will insure the MIL. And in the event of damage... they'd let me rebuild it to meet setback and zoning requirements. 

Any advice is appreciated!

Andrew G

Pretty interesting discussion. Status Money is a relatively new site that calculates one's net worth relative to ones peers. You can also customize your peer group to see how you are doing relative to other American's outside your age and location etc. It's a pretty neat site that lets you compare other items such as credit scores and spending, again relative to your peer group and custom groups. I've found it very interesting to use. This site is kind of like Mint but has less budget like features and more comparison like features. 

On raises and taxes: I am finding that I am paying less taxes over the last three years. I'm slowly learning on how to reduce my tax exposure (or at least deferral of) in all areas of my life, while my income has been increasing. Basically maxing out tax advantaged savings and keeping a close watch on all expenses on my rentals. Further still, this year my child tax credit is doubling and will further support my federal tax return. We minimize sales tax exposure in my state by trying to limit spending on b.s. stuff for the house. I would wager a guess that we spend less on discretionary spending today than we did three years ago. I realize this isn't the norm. I would generally agree that when individuals get raises they are normally spent on new car/truck payments, more stuff. Rather than increasing their 'spending' on tax shelters. Fascinating stuff all. 

Steve! What happened to your b-duplex with the falling price?? I might have some bucks. Bring me something tasty. :) I have one I might be able to trade that is soon to be auctioned with the buyer needing to unload. It's likely a bit more than your most recent purchase but it could work. East Wenatchee. The seller is interested but a bit on again off again in responses. I don't know what his payoff is and there might not be enough there but it's early on in the info gathering phase. 

Hi Tyler, I think Steve more or less hit the nail on the head. Note though he's bought over the last 14 years. Jumping in right now, especially in Chelan, where the market is driven by westside Seattler's vacationing seasonally should at least give you pause and it seems like you are a at least aware of the high prices. I think Chelan is a good indicator of where the market is...7th 8th inning??? Can't know for sure but it's hard to find value. 

If you can take anything away from Steve's post take this, "Were purchased off market..." If you want to find value in this kind of market I would find the owner of a run down multi and start sending letters. Tell them you're looking to buy, you're local, and you can help. If you can solve a problem for owner you might be able to get a deal. There's lots of good info on this strategy on BP. Lots more to say but that's my recommendation. Take this with grain of salt. I'm by no means as seasoned as Steve. 

Best, 

Andrew

Hi guys, wanted to introduce myself. I am in Wenatchee but I own two rentals in Kennewick and would like to add more. Having trouble as you pointed out the prices have been ripping higher. However, Tricities is better priced compared to Wenatchee even today. Having said that the rents are better in Wenatchee. 

Let me know if you guys want to grab a beer or a coffee one weekend. I'm down that way plenty. I have a couple good stories to share and who knows we might be able to add value to each others approaches. 

Andrew Gingerich
East Wenatchee, WA