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All Forum Posts by: Blake King

Blake King has started 27 posts and replied 148 times.

Wow @Jaysen Medhurst that rent to value ratio would NEVER happen anywhere close to me. We are lucky to find 1% around here... and thank you for the advice, I will keep that route in mind when I get closer to being ready to buy again. 

Hello @Spenser Harding my job is all over the phone, but my employee is uncomfortable with me working remote, trust me I’ve asked! If I do transition companies as planned in January, after a year or so that might be doable remotely. We would like to stay in the Everett area for family, friends, and our church. It could be smart at this point to rent, and then look at rental properties somewhere else in the state? Or do a live in flip to then sell / 1031 into a better cash flowing property? 

Gotcha gotcha @Jaysen Medhurst. I guess everyone's numbers depend as well! My strategy is a slower BRRRR. What would your suggestion be? I bought at an OK price and have put about 4K into remodel. I think it could appraise at maybe $310,000. Is it worth trying to refinance to lower my payments and increase cash flow? My wife and i's goal is to try to live in flip / brrrr 1 rental property per year, that we will hold forever and the goal is to live off the income (during retirement, so I'm meaning after 20-30 years as they lay themselves off). Obviously cash flowing properties will expedite this process, but if I can break even with cap x, and don't mind the slower build, then it's fine? What would you suggest with this property? Always trying to learn!

@Jaysen Medhurst this area search here is all within an hour of where i would be moving (traffic here is terrible). you can see there is only 1 multi family under 400K even it is $360k and 2 1 bed units, in an OK part of town. https://www.redfin.com/city/5832/WA/Everett/filter/property-type=multifamily,max-price=400k,viewport=48.17619:47.80212:-121.99795:-122.53971

here is where i currently live and an hour between my current job. If i stay, again only 1 multi family under 400k. https://www.redfin.com/city/5832/WA/Everett/filter/property-type=multifamily,max-price=400k,viewport=49.27829:47.79812:-121.58237:-123.74942

I am in purely for long term assets right now. i plan to hold all of these until they are completely paid off. I am fine with breaking even at this point in the market / cheapening my current living, and working on saving to invest out of state, or when the market dips here, try to snatch  up more investments. I am 22, and just starting, it was the best i could get in my area :) i paid 289k for my duplex with 2, 2b1b units and detatched garage, which is great for this area!

hello @Jaysen Medhurst

1. Absolutley, i could get a much better deal in Texas or somewhere else. I knew it was not the best deal when i bought it, but i also knew that 1. i needed to get started, and 2. it sure as heck beats renting! i needed somewhere to live no matter what, so paying $500 of my mortgage myself and getting the tax benefits / appreciation / experience landlording, would certainly beat paying someone else $1200 / month in rent. 

2. 30k is my taxable income at this time since i am on comission. i make roughly 80k / year including commission, but this is not lend-able as i am under 2 years experience with this.

3. this actually was at a local credit union that i had previously talked to, but i did stop there as it was a little early to be checking. I really need to wait until they can count my commision, just trying to get prepared! 

I am about 2 hours north of seattle, in Bellingham, and i did move into Mount Vernon (which is a LOT cheaper than both bellingham and Seattle. I will likely be moving closer to Seattle, just a bit south in Everett. Anything within an hour drive of everett, is around 300k for an 1100 sqft sfr, thats if its run down. Prices are crazy here, just trying to beat renting is my primary strategy, then i will look for out of state rentals. Thank you for your advice!

Thank you @Shaun Weekes that is helpful. If we move in with my family and can verify we are not paying rent, it is great to know that will work, exactly what i was looking for thank you!

Hello Everyone!

(tl;dr below)

I met with a Mortgage broker a few weeks ago, and came away very discouraged. 

I am currently in sales, with about 1.5 years of commission, getting close to the 2 year mark so it can qualify on my DTI. My current taxable income before i hit 2 years is only 30,000 / year, so there is not much i can qualify here north of Seattle. I did manage to buy a Duplex last June, with my dad as Cosigner, and a significant down payment. As i get closer to 2 years, i want to be ready to buy another property when my income is lend-able.

Here are the financing specifics. 

current mortgage $1700 / month.

Rent from unit A is $1200

We live in unit B, i think i could rent it for $1100 when i move out. 

The mortgage broker said we could not count that rental income towards my DTI when i plan to move out and rent, as it would have to be done before i moved. When i hit two years i am hoping to buy a property in the ballpark of 300k-400k+ and it is seeming impossible.

TL;DR - How can i qualify the rental income from the unit i live in, when i move out and try to buy another? Having this off will be crucial to getting financing. i have 0 other payments, no student loans, no car payments, no credit debt. 

Thank you for your help!!

Post: First Property Refinance

Blake KingPosted
  • Investor
  • Seattle, WA
  • Posts 155
  • Votes 34

Hello Bigger Pockets Community! Looking for some advice on my first property, and how to use it to achieve my next goals. 

Around 6 months ago i purchased a small duplex, which i live in half with my wife, that we have rehabbed. We rent out the other unit, but have not done any repairs / renovations to the other unit. 

We are currently paying around $500 / month of the mortgage, that the tenants do not cover from the other units rent. I believe we would cash flow around $200 if we moved out and rented both. 

I am trying to plan my next purchase, but what is most holding me back, is that i am on commission, and cannot qualify for much as my 2 year mark (when commission is lend-able on) is not until OCT. 2019. I thought i was stuck until October, but now i am wondering i could turn it into a BRRRR property, refinance the house and pull out some cash to try to purchase again. 

Things have slowed down since i bought the property. The closest comps to my property, is one that is currently pending at $295k, and one pending just like mine at $275k. I paid 290k, so if this other property sells for 275, i see my house being hard to appraise any higher than i paid. We owe about 250k on the house, and i have a loan with my dad for a portion of the down payment money. I am looking to fix up the property a bit more to help it hopefully appraise for more.

here are my real questions.

We have Vinyl siding, so i am not sure besides landscaping what i can do to increase curb appeal (i think that is one of its biggest drawbacks. Has anyone painted vinyl siding? I know it is possible but not usually ideal. 

For the second unit, i think some laminate counter-tops, carpet, and paint, would be enough to really refresh the unit, and cost maybe around $4,000. 

Besides these, what else might help me in refinancing? I am not sure if i would be able to force much more value out of the property. 

The property if i moved would rent around $2300 total for both units, does the rent factor into the appraisal at all?

Any advice is greatly appreciated.

Post: Acquiring renters with purchase

Blake KingPosted
  • Investor
  • Seattle, WA
  • Posts 155
  • Votes 34
Originally posted by @Julie Marquez:

@Blake King Congrats on the duplex and welcome to the neighborhood! All of our properties are in Mount Vernon, so if you want feedback on rental prices, etc. I'm more than happy to help! All of our rental agreements are month to month, some times we keep a good tenant at below market rent because we want them to stay, and other times we get it up to market rent because it is so hot right now! Maybe he's a good tenant and you will not want to deal with a turnover, or maybe you want to start fresh. Looking forward to hearing more about your MV deal!

JULIE! Thank you so much for reaching out. Really glad to hear someone extremely local, you will understand whats going on in Mt. Vernon better than anyone. I sent you a Direct Message and am super thankful for the advice and help!

Post: Acquiring renters with purchase

Blake KingPosted
  • Investor
  • Seattle, WA
  • Posts 155
  • Votes 34

@Gabe Hall awesome man cool to get a local response :) The duplex is actually in Mount Vernon, but the housing shortage is real up there too! :)