All Forum Posts by: Angela Jossy

Step one was raising my credit score. I have done that. Step two was reliable income and learning about property management. I have been managing a 49 unit apartment building for almost two years now. During all of this time I have been reading books and listening to Bigger Pockets podcasts. Recently I have been looking into ways to come up with a downpayment. I only have 5k in my Roth IRA 401k. I make slightly too much for downpayment assistance and even if I did qualify, they stipulate that you cannot use any portion of the property as a rental - not even Airbnb. Speaking of Airbnb, a friend alerted me to a company in nearby Seattle who will pay the downpayment for you if you live in the home and rent out one of the rooms as an airbnb for at least 3 years and give them 2/3 of the income from it. You have to buy in Seattle proper though. I'm in Tacoma and I don't want to commute to work because the traffic makes that a 2 hour ordeal each direction. They said they are looking to expand to Tacoma in the next 6 months. If they do then I would like to buy a 4plex and airbnb one unit, rent two and live in one - if I can find the right four plex at the right price and the numbers all work ...

Other ideas I've considered doing to get the down payment include doing a couple of wholesale deals, finding a partner, finding a 1% down deal, finding a seller who is willing to finance or do a "Subject to" deal, or waiting a couple more years until I can save up more money ... also waiting for the market to come down to more reasonable prices ... 

I wish I knew which plan was the right one so I could just commit to it and work in that direction. Any advice?   

Here is an update for those that are following this: After hearing that the marina does not allow airbnb afterall, I thought we were dead in the water so to speak. But because I like to finish what I start and leave no stone unturned I followed through with my due diligence and called the woman I found on airbnb who has a very similar houseboat in Seattle. We only had a few minutes to talk but in that time I found a real kinship. Her day job is the same as mine: Property Manager. She also has a side business helping people to become first-time landlords. What a coincidence! She invited me to her houseboat for lunch and a chat. She said there is a man at the marina there who has several of these little houseboats and its possible he will join us. She also said there is a slip open there. So I am looking forward to making new friends and learning about their journey's into land-lording (actually water-lording?) and airbnb.  Their slip fees are much higher than Tacoma and their boats are more expensive so I am interested to see how they pencil this out and make it profitable. 

@Carly Snapp I would love to meet you for coffee.  Send me a private message and lets coordinate. 

@Ryan Evans I do not have anything under contract but I have a connection to the owners. I have never done a wholesale deal, or any real estate deal for that matter, so if I do this then I will need someone with experience to guide me through the process. 

BTW I think I know of two houses in Tacoma that might be right for a wholesale deal. Anybody want to help me with that instead? 

I want to sincerely thank all of you for your input. It really did help. And I am 95% sure I am NOT going to do it. The clincher was when the marina told me they do not allow airbnb. The woman I spoke to before was new and I guess she didn't know that. I have a couple more due diligence calls I planned to make so I will follow through with my investigative process just because I like to finish what I started. I am learning a lot through this process. And I do like to flex my imagination muscle and practice my business planning skills.   

@Ryan Evans I do work with Spaceworks. They are a regular client and always put at least one of their businesses on our tours. I was also the director of Art on the Ave Festival for 3 years and from 2003-2008 was Associate Editor of the Weekly Volcano Newspaper. I've actually been involved with tons of community stuff in Tacoma. 

@Ian Hooper I guess its a hybrid situation. I already do bus tours as a side business. I'm investing in my business as well as dipping my toe in the buy and hold world. It seemed like a manageable option at this stage. Borrowing 42k on something I can use to make money multiple ways seemed less risky than borrowing $300k for an actual house or multiplex. 

I have just received an email from the owner answering some of my questions.  

Hi Angela,

Attached you will find the survey done last year. The carburetors have been replaced since then as well as fresh paint and some cosmetic upgrades.

Estimated monthly expenses:

Moorage (rates vary)

Electric (rates vary depending on usage)

Propane for heat & cooking = $10 - $30

Fuel (rates vary depending on usage)

Estimated annual expenses:

Insurance (rates vary) $100+ per year

Haul out and bottom paint every 1-2 years = $2000

Replace zincs, dive service hull cleaning every 4-6 months = $150-$600

Engine maintenance, tune up, oil change = apx $400 (rates vary, required services vary)

Registration tabs = $80 - $140

Let me know if you need anything else!

@Matt K. My friend has a captains license and my business plan currently is set up for 6 passengers or less. The six-pack option is much easier and doesn't require a coast guard inspection. 

@Matt K. - the marina where I would keep it has an onsite repair shop. The cost for hauling it out is $500. I intend to borrow extra money beyond the purchase price so that I have money set aside. I also put $500 per month of the income in the business plan as an escrow account for repairs/maintenance. I also have various friends who work on boats, the seaport is a marketing client of  mine and there is a school for sea scouts less than two miles down the waterfront. 

Its called a Cruise-a-Home Corsair. (http://cruiseahome.nwcruising.net/).  The one I am looking at has been customized and its really special. Its only 40 feet so its like a tiny home inside. And its still a great tour boat too. I talked to the marina and they seemed OK with the Airbnb plan. I can only do that a max of 8 nights a month for now because I need to get Live-A-Board status in order to have that option full time. They are only allowed to use 10% of their slips for Live-A-Board and there are three people on the wait list before me. Could be a year or two before that happens but that's OK. 8 nights a month is plenty for me right now. I can do cruises throughout the summer and in the winter we have a great scuba season so I could do some excursions in the winter for that. According to my modest calculations, I could pay for the boats expenses for the whole year just on the summer excursions alone. 

Some friends of mine are selling their houseboat. They've put a lot of time and money into it. It was their home and a place for them to do meetings and small retreats. They have two boats and they are selling them both because they are building a house and need the money for the next phase of their lives. This boat is really charming and since I am in the bus tour business as well as being a property manager it seems like a great opportunity for me to do tours on land and sea. Also I can rent it out as an airbnb so it can make money for me must by sitting in the marina. Its really a darling little boat and at 42k seems affordable as a first investment. I've done a lot of research into maintenance, mooring, licensing, insurance and etc and it all seems to pencil out even with modest success with the business side. And if he business tanked, i could give up my apartment and live on it. The monthly expense would be almost the same as what I pay now in rent. The only problem is, I haven't saved a down payment yet and I'm not sure my income is enough to get a loan from the bank. 

I could use some advice from experienced investors about whether this is a good investment and how to creatively finance it. 

My goal prior to this was to save up a down payment and buy a 4 plex once he market goes down. I still want to do that and/or partner with someone to buy an apartment complex. Is this a good first step - or a dangerous distraction ...