Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Daniel Ulie

Daniel Ulie has started 7 posts and replied 10 times.

So I was set to close on a house today and the title company called me saying closing would be delayed a few days because the seller, without telling title, put title into a trust last week. Luckily the title company caught it before closing and are working with his lawyer to make sure the necessarily documents are signed prior to closing.

The seller is an old guy and everyone claims it was an honest mistake which I'm inclined to believe. My question is.. is it possible anything nefarious was going on? The only thing I can think of is at this point is A) Does it give him some added layer of protection if it was found out that he misrepresented smoothing about the condition of the house?

There's no Great Falls forum so I'm posting here. I'm a relatively new investor in Great Falls looking to build my portfolio. Looking for realtors that help locate off market deals/wholesalers to assist with this.

Any help would be really appreciated!

Quote from @Leo R.:

@Daniel Ulie  in my experience, cashflow is rarely "found". Instead, cashflow is created.

This is similar to the RE saying "deals aren't found, they're made."

So, the obvious question is: "ok, how do I create cashflow?"

It often comes down to learning to see something in a property that other buyers don't see. For instance, being able to spot an easy opportunity to add a bedroom or a bathroom to a property...if it's an easy conversion, and it's on the right type of property in the right market, 10-20k spent to add a br and/or bathroom can pick you up an extra 500-1000 per month in rent...do the math, and you'll find that that is some incredible cash on cash return.

All sorts of rehabs/conversions can turn a total loser into a cashflowing property. ...another example: I've built ADUs in previously unfinished basements, which turned properties that were $500/mo negative into properties that now cashflow 1000/mo ...the power move was rolling the construction debt into refis on other properties at lower rates, which more than negated the construction debt...in other words, I got paid to build the ADUs (these days, this isn't usually possible--or at least, it's a lot less likely--now that rates are rising...but who knows, rates might decrease again at some point...).

...Although certain rehabs/conversions can force cashflow, there is real skill and art to spotting properties that are good candidates for these types of rehabs/conversions. ...an effective rehab/conversion is often a lot trickier than HGTV would have you believe, and choosing the wrong property to do this can completely blow up the financial model.

Another approach is to learn to find properties that have something that turns off other buyers, but which is irrelevant to cashflow, and irrelevant to your business model. For instance, I've bought properties in A class neighborhoods where EVERYONE wanted to live, but they were on relatively busy streets, which turned off retail buyers. However, I knew the streets weren't so busy that they would impact the rentability of the properties... I picked up the properties for a heavily discounted price (because they had sat on the market), and had no problems finding highly qualified (and high-earning) tenants that made the place cashflow right out of the gate.

Another example: I once bought a property in an A class neighborhood that had an awkwardly-placed stairwell inside the front entrance, which turned off other buyers. However, I knew that the stairwell had zero impact on the actual functionality of the property, and that it would have zero impact on its desirability as a rental. Once again, the property sat on the market for a long time, I bought it at a heavy discount, and it's been cash flowing ever since.

Cashflow can also be created by changing how you use the property—for instance, renting a house by the room or as MTR or STR sometimes creates cashflow.

By the way: every property I own cashflows well, and every property I own was bought on the MLS between 2016 and now--during what was probably the toughest buyer's market in American history! (I didn't have to look for off market deals, do weird business arrangements, or do anything unusual at all to get these properties, even in a tough buyer's market...shocker, I know!).

So, in summary: it is possible to get cashflow, but it's just not something that can be had without some effort and sacrifices...you have to go where others aren't going, and do what others aren't doing.

Good luck out there!

If it were possible to succeed at RE investing by buying turnkey, A class, perfect properties with no flaws, then everyone would be doing it! ...but, the reality is: RE investing takes creativity and flexible thinking, the ability to see opportunities others miss, the willingness to acquire properties others don't want, and the willingness to do what it takes to force cashflow.

Thanks so much for the insight into your investment strategy. 

Is your above experience in purchasing strictly single family properties or do you have any experience in acquiring small multifamily?

Quote from @Bjorn Ahlblad:

@Daniel Ulie you have a distinct advantage from your flipping background, you are familiar with the work and expense involved in repositioning a property. It is very difficult in todays market to find properties that you can turn into cash flowing investments at current pricing and interest rates. 

I bought rentals in Aberdeen, Shelton and Tumwater 5-7 years ago and they made money from day one; I still have them, they are my retirement income. You might consider joining Wa Landlords Association and networking at their meetings.

Air B and B, and short term rentals might work with the right property. I have not looked into that. All the best!

Thanks so much for the advice, what sort of rentals did you purchase in Aberdeen, shelton and tumwater? Were they single family?

Hi all,

Relatively new investor here, i've completed a few single family flips. My intention now is to acquire properties to rent and looking for advice on current strategies that cash flow best in western WA now and into 2023 as we continue to see high mortgage rates.

What are you favorite strategies in both single family and multi family? What makes sense in current market conditions?

Any investors, realtors, lenders etc who would be interested in chatting for a moment about their experiences in this sector?

Thanks!

-Dan

Hi all,

Relatively new investor here, i've completed a few single family flips. My intention now is to acquire properties to rent and looking for advice on current strategies that cash flow best in western WA now and into 2023 as we continue to see high mortgage rates. 

What are you favorite strategies in both single family and multi family? What makes sense in current market conditions?

Any investors, realtors, lenders etc who would be interested in chatting for a moment about their experiences in this sector?

Thanks!

-Dan

Hey all, I am a new-ish investor who's completed a couple of relatively low repair cost flips.

Because of my relative inexperience to the industry wondering if someone here (or someone recommended) could assist me in estimating the costs of repairs on a house I am looking to purchase and flip? There's a seller provided inspection report that I could use some help ball parking.

I would be willing to pay anyone for their time who is willing to help.

The house is in Seattle city limits FYI.

Thank you.

Originally posted by @Dave Skow:

Daniel - if you will need  financing  for this idea - you might ask you friend  what  sources  they  use for their projects ....there aren't  many traditional loan  sources  willing to make  investment  property acquisition/ construction loans 

Thanks for the message Dave. I have financing already from a private funder. Just looking for advise on the acquisition/build. Thank you.

Hi all,

Hope you all had a great weekend. I am a fairly new real estate investor who has completed a several flips in the Seattle area.

I have a new investor who is interested in purchasing vacant land in Snohomish County and building either a couple single family homes or townhomes. While I have a friend who's built a couple single family homes in Everett, I would love some further advise on this process. Is this seen as a viable strategy in the current market climate.. especially with current sky high construction costs?

Would love to chat with any investors in this sector. Any help is greatly appreciated!

-Dan

Post: Seattle DADU cost estimate

Daniel UliePosted
  • Posts 11
  • Votes 6

Hi all,

First time poster here. Have a question for those knowledgable about building out a DADU in Seattle.

I would like to build out the approved 800 sq foot pre-approved Seattle DADU design and am knee deep in the price estimate process. I could really use some help from experienced folks so I know exactly what I'm getting into.

So far I have cost estimates on feasibility ($500), permitting ($1000), general contracting labor (200K give or take), cost of building materials ($140,000), and loan interest (Still working on getting an estimate on this) Can someone help fill in the blanks of everything else I'll need and what I should budget for? And if the cost estimates I just listed seem reasonable?

Looking for help on budgeting construction work a GC typically will not do (plumbing, electricity) and other costs I may be overlooking. Thanks!

-Dan