All Forum Posts by: Brad Jacobson

Hey Jason,

I'm in the great SLC region in Utah and I would assume we're in pretty similar markets.  

Though home prices appear to be out of control, note that rent rates have also risen substantially also. A lot of small multifamily and lower priced SFH still can cashflow. I'm currently into a pair of single family homes on a single plot (zoned like a duplex) for an unholy $490k but the gross rents are going to be $3,400/month. Though the purchase price is crazy high, the rents are also crazy high so things can still work!

Good luck!

I agree with Matthew - real lenders should have a company driven email or at least the proper signature with the company logo and license number.  Steer away from odd Gmail addresses (especially when it comes to given them your SS and other personal details) unless you've done the work to verify them.

You bet!  Good luck my friend! 

No prior relationship needed! This works for both traditional PM and STR PM. They're always happy to give you a quote and feedback on the market, it's how they earn business. Just be forward with them by saying, "I'm looking to purchase a home on XXXX Ave near your XXXX office. Can you provide me a quote and your opinion on the area?" It'll get you plenty of info!

Hey Colby,

This is probably a lazy man's response but it's what I do!  I love contacting the local property managers.  They provide the very best quotes on rent rates and the good PMs have great insights into which neighborhoods they do and don't like to manage in.  That's often the golden ticket when buying B or lower properties.  

One of my out of state PMs also provides info like population and job growth  but I rarely focus on anything like that.  My emphasis is much more heavy on the quality of neighborhood and the cashflow.

Good luck!

Yes, the PM can crush margins but I've also found that STR PM is much more negotiable than traditional PM. They'll usually quote you 30%/monthly or so but I've successfully talked some down to the lower 20%s. That will help though it's not always a slam dunk.

I like to buy off the local classifieds first but when that's not an option, I go to the refurbished appliance store in my local town.  These appliance stores can be difficult to find but all major towns should have a refurbished or second-hand appliance store that still offers a small warranty for great prices.  Good luck!

Hi Jacky,

This is a pretty common scenario you're in.  Especially in our BP world of "house-hacking."  Quick definitions:

- Mother-in-law: simply means the basement of a home has a kitchen, separate entrance, and a dividing door or something like that

- Accessory Dwelling Unit: means the city has approved the ability of the owner-occupant to rent out a portion of their home. "ADU" legality is typically defined by each city individually. If they are allowed, they typically require a business license or something like that

- Duplex or Multiunit: means the property is zoned and legally permitted to have multiple families living in the same structor and does not require an owner-occupant 

It sounds like your home with the MIL will need city approval to be a legal ADU or a zoning change to become a legal duplex. It's rare that a city will change the zoning for a single family to be multi-family but I don't know the specifics of the Washington market. I've heard they're become really lenient on ADU and multifamily so you might be in luck!

My recommendation would be to go to your county website and look at the zoning and try to make a game plan from there.  It's unlikely you'll have a quick solution for the duplex-like income unfortunately but you could always convert the rental into a single family unit and rent out the whole thing as a quick solution.  

Good luck!

Hi Arianna,

I faced a similar dilemma a few years ago and went with the option to sell.  Looking back, it was the right decision for me.  I was able to use the proceeds from my first home to put myself in a position to buy a few more. I ended up putting those proceeds into a flip, almost doubled them, and now have a five door portfolio that I'm still growing. 

Just this first big tax free paycheck to springboard you into more!

- Put another 3-5% down on a new residence for you

- House-hack that new home

- Pay off all high-interest debts

- Use what's left and the new cashflow from the house-hack to buy more and more properties to either rehab or hold

Good luck!

Hey Jesse,

Two thoughts:

1. Same as what Scott said - a title company needs to be involved in every transaction for insurance, recording, and escrow purposes so you need to get one either way. If you get a really good escrow agent, he or she might be willing to also help you work through a purchase contract and all. 

2. I would personally recommend hiring a Realtor by offering a flat $1,000 or something like that to just handle paperwork and help you work your way through due diligence.  I, as an agent, am always happy to help people with paperwork if they've done all the work of getting pre-approved, locating, and negotiating the sale of a property on their own for just a small flat fee.  

Good luck!