All Forum Posts by: Dan Leaman

Thanks @Tim S. that was super helpful. 

Thank you @Thomas Tague

thank you also the web sites were awesome @Jeff Dzado

Im looking at them right now. 

Good morning investors, contractors, homeowners, banks, and code enforcement persons. I have a question regarding adu's  about what can and cannot be done in Washington state? I know there are limitations and certain zoning/lot size requirements that have to be met. Anyone have experience with adding a detached prefabbed or stick framed built home to use as a rental or adu. This is specific to a larger (.5 acre) lot in Tacoma/parkland/midland area. Lot is on septic so I understand there may be some additional septic work. The one rule I am trying to figure out is the restriction on owner occupancy. The idea behind allowing for an ADU is to alleviate the rising cost of housing and or to offset the expense of health care for aging population. I get that and I think it's a great Idea..... I am trying to add value to my rental by adding another dwelling on my lot...... It can certainly handle the addition. Interested to find out if anyone else in the tacoma midland parkland area has done this and with what success or lack there of. I am doing the numbers as best i can to see if this will work well for the immediate and future value of my property. As always thank you in advance.

Thanks @Andrew Postell I realized that after I posted.  I will move that over there. 

Good morning investors, contractors, homeowners, banks, and code enforcement persons. I have a question about what can and cannot be done as far as adu's are concerned? I know there are limitations and certain zoning/lot size requirements have to be met. Anyone have experience with adding a detached prefabbed home to use as a dwelling. This is specific to a larger (.5 acre) lot in Tacoma/parkland/midland WA. Lot is on septic so I understand there may be some additional septic work. The one rule I am trying to figure out is the restriction on owner occupancy. The idea behind allowing for an ADU in part is to alleviate the rising cost of housing and or to offset the expense of health care for aging population. I get that and I think its a great Idea. I am trying to add value to my rental by adding another dwelling on my lot. It can certainly handle the addition. Interested to find out if anyone else in the tacoma midland parkland area has done this and with what success or lack there of. Mostly I am doing the numbers and seeing if this can work well for the immediate and future longterm value of my property. As always thank you in advance.

Hello Adam, you may have found a good rental property or you may have found a good but high priced rental property.  My experience in Puyallup is that it will rent due to location-location-location. Puyallup is a hot location has been for some time and most likely will be for a long time to come. Its proximity to Seattle, JBLM and Tacoma makes location and A+.  With that said, long term investments where people want to live is always, in my view, a good idea.  But buying a non cashflow property even if you can cover the negative portion is going to be a drag on your future investment goals.  If you get positive cash flow you will have a much rosier outlook on the property itself and on investments in general.  So what can you do to make it cash flow vs being cash negative?  Look for what the maximum rents could be for both sides of the duplex if you can get $1650 per side then you are great.  If the max rents is $1350 per side then put larger down payment so that your mortgage is covered by the rents.  Don't forget property tax as well as maintenance and manager.  Good luck let us know how it goes.   Just as a curiosity did you find out why the current owner is selling? 

@Sam Choi  what I meant by "reasonable" was this:  Most sellers overvalue their property, when you see a kitchen that needs replaced they see a kitchen that has been working perfectly for years.  When you see a roof that has 2 years left they see a roof they paid for 15 years ago and will possibly last another 15 years. Run down the list carpets, floors, paint, doors, toilets windows... etc.  A reasonable buying price considers you may have to replace many or all of these things in the next few years.  Also consider the fact that we have been seeing rising prices in housing for the last few years many have argued that we are do a correction, (I am neutral on this) and its a mute point if you cash flowing now.  Good luck, let us know how it goes.  This is the place you want to come for information and cheering. 

Hey @Sam Choi I have a rental in Puyallup which I purchased many years ago, before I know anything about cap rates, or ROI, or ARV, or tenant screenings, or property management or even that one should get inspections before buying. I knew nothing about real estate or investing. This is a rental I like to call the "little rental that could". Could what? Produce monthly cash flows every month since I owned it. Why? Location location and location. I see no reason why this south hill property would not do the same for you. Of course buying at the right price (unlike me) would be best for your long term goals. I am a long term buy and hold kind of investor, my time horizons are such that my bad purchase price turned out ok, and its still turning out well for me every month. Buy at reasonable discount, do reasonable fix up, get good property management, price it competitively, keep up the property and because South Hill is almost perfectly situated between Seattle, Tacoma and Olympia, the location will do the rest.

Hello,  I am looking for information for a great full service lawyer who can draw up Purchase/sales agreement, run title search and escrow accounts and register with county all the necessary and legal paperwork.  If any one has some good references for one please let me know.  This is in Tacoma WA.  Thanks in advance for any help. 

Thanks @Daria B. I will look into them.