All Forum Posts by: Daniel O.

Great, thanks for the input everybody!

@Ben Simon gotcha, but the landlord is not prevented by law from passing that bill on to the tenant? I read something somewhere about not being able to evict based on failure to pay utility costs...

@Alex Deacon great, thanks very much! Any idea where I could go to learn more about those mechanical meters or other sub-metering options and understand the costs involved?

Hey folks,

I've been exploring Pittsburgh as a potential investment area and had a few questions to help me better analyze opportunities. In particular, I'm wondering for both single- AND multi-family properties.

1. Are there laws around who must pay utilities in Pittsburgh (or Pennsylvania as a whole)? If landlord must pay up front, are they allowed to bill tenants after the fact?
2. Anybody know what's involved in setting up sub-metering and how much that might cost per unit?

Thanks so much!

@Larry Turowski oh wow, I think you just hit on something I haven't seen anybody mention before. @Natalie Kolodij you mentioned it as well.

Taxation on principal paydown? Can you elaborate on that?

In retrospect, it totally makes sense. Am I gathering that the IRS catches on to the fact that while you're losing mortgage payments to the bank, you're actually recapturing some of that value (from your tenant) in the form of principal paydown, and therefore that should be treated as taxable income?

How does that work? Is it taxed as regular income or at some special rate?

Thanks so much!

@Nik Moushon roger. Thanks for explaining.

Ooooh, one more question:

For those of you working within Washington State, do you have favorite tools/venues to find off-market opportunities, or do you do it the "usual" ways (research, hunting for "motivated" sellers, driving for dollars, building up connections with people in the know, etc.)? Are foreclosures a viable angle around here?

@Robert Freeborn will do, thanks!

@Heather Hopkins oh wow! How fortuitous :) I'd love to pick your brain all day, but I'll try not to bother you (much) until I have something to offer in return.

@Julie Marquez thanks for the tip about Sedro Woolley! As for house hacking, I have no need. I've had a great house in Seattle for me and my family for a good while now.

Just to clarify what I mean when I say risk, I'm talking about total financial risk (which is why I'm limiting exposure to a tolerable $50-80K in cash outlay and will be looking closely at liability issues) and the risk of biting off way more than I can chew from a time, logistics, and experience standpoint.

@Rachel Luoto thanks for the tip re: Kitsap REAPS meetings! I'll look into it.

@Michael Liddicoat thanks for the connection to Kayla. I'll check it out.

Hey @Jake Alger!

As far as strategy/criteria:

• I'm primarily looking at buy-and-hold SFR/MFR rentals.
• I'm not opposed to doing extensive rehab as I grow/learn but I'd like to start with a simpler, lower-risk rehab on property #1.
• In that vein, this is all a toe-in-the-water / experiment for me. Experiment budget is currently set at around $50-80K total up-front cash outlay (i.e., combined pool for downpayment, rehab, professional services, etc.).
• On that note, I'd assumed I would use leverage and have estimated 25% down, but I'm open to interesting cash plays.
• I 100% insist on using property management, and all of my planning includes that cost.
• Ideally I'd like to hit ~8+% cash-on-cash return after all is said and done (taxes, payments, repairs, insurance, PM fees, capex, professional services, estimated cost of vacancy and turnover, etc.). Is that realistic? I think I'm setting the bar nice and low on this first trial. The goal here is to learn as much as possible without taking epic risks.

That said, I'm pretty open minded.

So far I've poked around in Bremerton, Wenatchee, Ellensburg, Yakima, Mt. Vernon. I'd like to poke around Eastern Washington more (e.g., Spokane). I'm really just starting to look at Washington.