All Forum Posts by: Bryan R.

First read this: http://www.lni.wa.gov/IPUB/625-040-000.pdf

As far as hiring temps...I have a hard time imagining that working. I mean for that to work you would have to find experienced trades people (carpenters, carpet layers, tile installers) working as temps, who had the necessary tools, and you need to know enough to recognize if they are doing their job correctly.

I agree with J. If the numbers don't work, move on. Trying to force the numbers is a sure ticket to trouble.

@Brandon Turner

Off topic but I just saw it came back active. Why haven't you bought that cheap duplex in Aberdeen that you posted about yet?

It is a fee equal to 1% of the loan value. So 2 points on a 100k loan would be $2000.

It's really going to depend on your contract. Read through it carefully. Most buyers have lots of "outs".

Try in the fileplace

http://www.biggerpockets.com/files

If you don't have the funds it isn't a cash offer. You're making an offer contingent on financing and should indicate so on your offer.

Here is one I bought at auction 2 months ago. Just got access today. 

Turns out the occupant was a hoarder. And the entire second story is soaking wet and rotting away. Everything in the picture below is moldy and about to disintegrate.

Oh and there is a partially abandoned moldy weed grow

Combine all that with the roller coaster floors and basically everything else...should be a fun one.

@Derrick Strope

I think you may be misunderstanding the 50% guideline. Take your rents (6000) * .5 = $3000 in monthly cash. Less $3200 in debt service and you are $200 in the hole every month. 

But 50% is just a guideline. I would suggest simplifying the deal for a moment. Just evaluate 1 of the properties. Add up all the expenses - vacancy loss, property taxes, insurance, maintenance, turn over, capex, management, utilities, HOA, administrative, legal etc...

Rent - Expenses = NOI

NOI - Debt Service = Profit

I think in a conventional scenario this deal doesn't look very exciting. Plus late 90's houses make me think lots of end of life maintenance is about to hit, unless the current owner has been aggressive. Now perhaps with some creative financing this deal can get more intriguing, but that's another discussion.

Previous discussion:

http://www.biggerpockets.com/forums/48/topics/1588...

 Putting contractor on after closing but before work commences would work I think. Personally that seems like a legal quagmire I wouldn't want to be involved in. If you are going to keep flipping houses probably in your interest to get your license, it is relatively straightforward, just the paperwork is a pain.

Everyone from other states always starts getting riled up in these threads and derailing the topic. There are sound policy reasons behind the requirement and it isn't overly burdensome. And it's not like you can solve anything by arguing about it here anyways. Just have to wait and see if/when law changes.

Get your contractor's license, check and recheck that people you hire are licensed and paying L&I, pull permits. 

@Patrick Britton @Howard Edson 

L&I's position is that if you are flipping houses you need to be a licensed GC.

http://www.lni.wa.gov/Main/MostAskedQuestions/Trad...

Edit: Nevermind, you were saying that too. Just read it wrong.