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All Forum Posts by: Brandon Ely

Brandon Ely has started 6 posts and replied 12 times.

Post: Advice on Accessing Equity in Mixed-Use

Brandon ElyPosted
  • Bothell, WA
  • Posts 13
  • Votes 1

Thanks! Yes, would be looking to use the equity to reinvest in another mixed-use or small multi family property. I can certainly provide numbers and details to see if there are any recommended lending options

Post: Advice on Accessing Equity in Mixed-Use

Brandon ElyPosted
  • Bothell, WA
  • Posts 13
  • Votes 1

Thanks for your perspective. I only own this one property so cross-collateralization not an option. I do have 3 years remaining on pre-payment fee.

Post: Advice on Accessing Equity in Mixed-Use

Brandon ElyPosted
  • Bothell, WA
  • Posts 13
  • Votes 1

I am looking for advice on how to access potential equity in a small mixed-use building for future investment. I purchased the building for $1.75M with 30% down with a commercial 1/5, 30 year am loan with a traditional bank.

I think the property value has increased based on comps and cash flow to roughly $2.2 - $2.3M

Outside of refinancing and paying a prepayment penalty, what other options are out there to tap the equity for my next investment?

Post: Turning a Unit - Need Help with Kitchen Remodel

Brandon ElyPosted
  • Bothell, WA
  • Posts 13
  • Votes 1

Hi all, I recently purchased a small 5-unit property in the Wallingford neighborhood. One of the tenants is moving out on 9/17 of the studio; I would like to do a quick remodel of the kitchen before leasing back out. Wondering if anyone has any recommendations on a team or contractor who can do a quick turn / design and build? Really small kitchen space, ok with Home Depot / Lowes off the shelf fixtures, etc.

I am purchasing a small mixed-use building with 5 residential units and 1 commercial unit in the Seattle, WA area. I am looking for suggestions on the right all-in-one management software to use. I have read about Buildium and Hemlane - any thoughts on which is best?

Post: Tiny Home AirBnB Rental

Brandon ElyPosted
  • Bothell, WA
  • Posts 13
  • Votes 1

Hi all, I'm looking for general feedback, do's and don'ts for an idea, and if someone has any experience in the area.

I have a small 50x50 lot in Coeur d Alene, ID. It's not buildable for conforming home, so I was thinking about developing the lot into a space for a tiny house, and then renting on AirBnB.

The lot is not improved, but in the city with all utilities at street - in my mind, this would be like developing a one-space mobile park...bring in utilities, a pad and some landscaping.

I'm not sure if the City will allow this idea,  but I have contacted to city to inquire. 

Here are my calculations

Costs
Tiny Home$ 55,000.00
Hookup Fees (City)$ 10,000.00
Hookup Costs (Contractor)$5,000.00
Landscaping$4,000.00
Initial Home Treatments$2,000.00
Total$ 76,000.00
AirBnB Calculation
Estimated Income (per AirBnB Site)$ 2,100.00
Nights$20.00
Cost per Night$ 105.00
$ 2,100.00
Monthly Expenses
AirBnB Fee @ 3%$63.00
Management Fee @10%$ 210.00
W/S/G$95.00
Loan Payment$ 544.00
Landscape$ 100.00
Misc. Maintenance$ 100.00
$ 1,112.00
Monthly Difference (Income or Loss)$988.00
Yearly$ 11,856.00

Hi all,

I have a scenario that I would like to run by the forum members to determine if there are any next steps I can use:

In 2014, I bought a small 50 X 50 lot in Coeur d Alene, ID. The purchase transaction was through a surplus land auction conducted by the City of Coeur d Alene. Since I have an abutting property next to the 50 x 50 lot, I was invited to participate in the auction, and I ended up winning. So I am an owner of a 2500 square foot lot in the city.

Fast forward to 2019. I start to think about exploring development of this 'tiny' lot. My thinking was - maybe a small home, small footprint, but inline with the existing older homes. So, I look up the zoning and see that the lot is in an R-12 zone which requires certain setbacks. Knowing that the lot is too small to adhere to the required setbacks, I explored the possibility of obtaining a setback variance through the city planning and zoning.

After talking with the city planners, it was determined that there were no 'physical site characteristics' that would warrant a variance approval. (I want to come back to this)

Because of that, the planning commission then suggested that I consolidate the 50X50 parcel into my existing property to the north, and then build on the 50X50 lot under the Accessory Dwelling Unit standards.

I then reached out to Kootenai County Assessor office. They notify me that they cannot consolidate the two parcels, as each one sits in a separate highway taxing district. The line between the two taxing districts runs right through my two properties.

The county assessors office then suggested I reach out to the two highway taking districts to see about requesting a boundary change, from either one, to incorporate my two lots.

Both highway district representatives respond, saying that the district boundaries were set up in 1971, and that there haven't been any changes since. Then, they provided a process for the potential approval of a boundary adjustment - pay all attorney fees, get a survey done, a notification to the taxing district members and a vote.

Because of the potential cost involved in requesting a boundary adjustment, I re-approached the city planning commission to see if the scenario with the taxing entity boundaries (significant cost, time, etc.) would warrant an 'undue physical hardship' in which they could grant a setback variance (again, all I really want to do is keep that 50x50 lot separate, build a small tasteful home and go on my way). The city planning then re-confirmed their prior guidance in that the boundary issue would not warrant a reason for a variance.

So, I guess my questions are these:

It seems common sense to me to keep the parcel separate and build, for both the city, county and taxing districts. It's just easier and more cost effective for all parties.

Is there any other scenario that I haven't thought of that may warrant a justification for a variance? The lot is small, flat, literally no streams, rock outcroppings - things that would warrant a poor topographical characteristic. I value a real property attorney's perspective, just don't want to set aside thousands for retainer just for exploration on whether I have standing.

If that is not an option, it seems to me the next option would be to incur all of the costs, try to consolidate the parcels with the highway taxing districts and then seek out a permit from the city to build an Accessory Dwelling Unit under their standards. This seems to be an expensive option to then create a wonky two-structure property that would ultimately not make it easily saleable, financeable, etc.

Or, I let it be and the city can stare at an empty but very visible 50x50 lot.

Is there an easy button to push on this?

Post: How to leverage existing rentals

Brandon ElyPosted
  • Bothell, WA
  • Posts 13
  • Votes 1

@David Clinton III

I’d love to chat sometime this week if you have time

Post: How to leverage existing rentals

Brandon ElyPosted
  • Bothell, WA
  • Posts 13
  • Votes 1

@David Clinton III

On a 1031, can that be used for multiple properties across state lines? I have another rental in WA as well. Could I exchange all 3 for a single MF?

Post: How to leverage existing rentals

Brandon ElyPosted
  • Bothell, WA
  • Posts 13
  • Votes 1

@Melissa Murphy Thank you for your response! My rents are pretty far below market. One has not been increased since 2010 and the other since 2015. I know this is not optimal, but various factors (emotions, spouse wanting to keep current tenants in, etc) have made us not move them.

That has hampered our cash flow, but the appreciation of the properties/area have kept any discomfort at bay.