All Forum Posts by: Brandon Vukelich

Hi Steven, my 2 cents...we actually don't use GRM much for 2-4 unit properties and I'm fairly certain the listing agent didn't factor GRM. SF and 2-4 MF are considered residential and typically based on comps, they will be appraised that way as well. Ideally, you should find similar comps of quads with 2/1, about the same sq footage, sold in the last 90 days (if possible). Maybe triplexes if you don't have enough quad inventory but not single families. The market in our area (any maybe yours) has shifted so much since May that comps prior to that can skew the data. You should also see comps in a price range of per unit, such as $135k-158k per unit. All that aside, take your actual gross rent less expenses and proposed mortgage payment based on $520k purchase (if you're not paying all cash) and figure out your NOI. If it cash flows minimum or better based on your criteria, make an offer. Otherwise submit an offer lower than asking and share your financial analysis with the seller so they can see your numbers firsthand and won't think you're just a lowballer looking for a deal. At $520k, if you believe the rents can get to $1400, just based on that and not knowing anything else, it sounds worth pursuing.

When looking at <4 unit properties, try not to overthink it using GRM, CAP, etc. Depending on the market, they should be rather straightforward. Gross Rents - (Expenses & Mortgage Pmt) = NOI. Whether or not the NOI is good enough is up to the individual investor. Best wishes on your process!

Hey @Steve Tucker, have you found sites like this that offer templates?  We use one on this site for multifamily.

https://calicomarketing.com/te...

Looks like they offer one for land.  Good luck!

@Andrew Cruickshank I have not had good experiences with Navy Fed, both when buyers make offers on my listings and when my buyers have come to me already committed to using them.  After you connect with a local real estate agent, I would ask them for local lending referrals or you could search out other local credit unions/banks.  When I have listed properties, I prefer to see offers from buyers using local, familiar lenders.  Nothing against our service members but Navy Fed and USAA as lenders on deals usually don't go smoothly.  Others may have had different experiences.  Best wishes on your search!

You should contact my brother, @Bryan Vukelich.  He's an investor and is licensed on Oahu.  I'm sure he can help or point you in the right direction.  Best wishes on your search for a property!  He loves it over there.

Curious if any investors (outside WA) are watching or interested in acquiring MF props in the greater Seattle-Bellevue-Tacoma markets.  Are we even on your radar?  There are more than the following points but here are some quick pros/cons that I believe may be factors driving demand or preventing investment.

PROS

- Strong jobs, specifically in tech, Boeing, logistics.

- Strong rent growth/demand.

- Double digit appreciation in prices (when things are good).

- In addition to jobs, we attract many new residents due to access to a wide variety of recreational activities.

CONS

- Increasing number of new laws that favor tenants (top two most anti-landlord cities, IMO, are Seattle and Federal Way).

- When recessions hit or bubbles burst, double digit drops in value (depreciated prices).

- Prices are still a premium, CoC returns initially remain lower than what many average investors hope to achieve.

- Heavy competition.

I'd love to get a sense on investor sentiment on investing in multifamily in Washington State. 

I'm dedicating more time to provide knowledge and information to my sphere and the general public.  Ramping up my videos on real estate investing, owning property in WA state, etc.  I'm also half way done writing a book for new real estate agents.  Not the typical, how to make six figures and lead gen, but how to be professional and competent among a sea of downright awful "licensed professionals."  I'm hoping to help improve our industry one agent and a time.  We'll see. :)

Already a lot of good feedback here.  Red flags for me that stand out on the financials are water, sewer, trash and maintenance.  W/S/T $3800/year?  Are the tenants being billed back a portion or on separate meters?  I would believe that Maintenance & Repairs would run at least double the $12k/year figure.  I see you intend to self-manage.  Not sure about your experience but 38 units is not for the novice landlord.  I'd find it hard to believe it is currently performing at a 14 cap but maybe you found a unicorn.  Best wishes on the decision!

I have three times.  I receive a confirmation that I will hear back within 24 hours but nothing.  I've been trying to email every week for three weeks.

Wondering if anyone else is having trouble getting a reply from BP support.  My BP sales rep has gone completely MIA on me.  No response in 3 weeks after several emails.  There is no phone number that I can find anywhere to any BP dept.  I'd love some help if anyone here knows how to actually reach someone at BP for assistance.  I'm just a lowly Premium member paying $$$$ per month.

Just to clarify...A "Realtor" is just a designation that any agent/broker can have as long as they pay the dues to NAR (National Assoc of Realtors) and their office is also a member of NAR. It has nothing to do with experience levels. Every state is different when it comes to Managing Broker, Designated Broker, Responsible Broker, etc. Here in WA we are all Brokers (although I still refer to us here as agents), then you can get your Managing Broker's License after two years.