All Forum Posts by: Erin Caldwell

@Rob Terpilowski WOW —— gorgeous transformation, doesn’t even look like the same place! We own a tri-plex in South Tacoma that we are currently rehabbing in hopes of doing the same thing you did. We will have put approx. $30,000 into the rehab (because we are do-it-yourselfers so it’s kept our cost low). We bought for $350,000 for a 5 bedroom (yes 5) unit, a 1 bedroom unit, and and a 2 bedroom unit. You are giving me hope for the appraisal! 

How many bedrooms are in your units? What part of Tacoma are you located in? 

Mark Rivera my husband and I own a triplex we closed on May 26 in South Tacoma very close to South Tacoma Way. Initially we were nervous about the location, but the numbers worked out really well. What does your mortgage + taxes + insurance work out to? Tons of local people we talked to beforehand underestimated what we could get for rent. Some said we could only get $1500 for our 5 bedroom (we have a renter paying $1925.) we had a ton of applicants. The area is changing. As such, it's a risk. Background: Purchased for $350,000. It's 3500 square feet. There are 3 units: a 5 bedroom (yes, 5 bed), 2 bedroom, and a 1 bedroom unit. We will be living in the 2 bedroom. We have a renter in the 5 bedroom for $1925. We will soon have a renter in the 1 bed (it's not renovated and it's a friend, we will renovate soon) for $500. That means that after mortgage, taxes, and insurance we are househacking and breaking even, which I think is a success (especially because we have don't have the 1 bedroom to its full potential.) Yes, the area isn't high end. Yes, we had a lot of very unqualified applicants. However, it only took 10 days to find a very qualified applicant. We have enjoyed living in the neighborhood. I feel 10x safer here than I did in Seattle, and people are super nice. Maybe we are foolish, but the numbers work out. Go with your gut. However, don't get desperate. We refused to buy anything that the numbers didn't fully work out. Hope this helps!

@Peter Grote My husband and I bought a triplex in South Tacoma.  We closed on May 26th so we are still rehabbing/waiting for current tenants to vacate. We dont know the specific price we will get from renters.  Originally I wasn't looking in South Tacoma, but there weren't any great deals (that I found at least) in the more desireable neighborhoods that didn't need a complete remodel. The triplex we bought was in great shape and only needs minor repairs and upgrades.  We have been pleasantly surprised by the neighborhood, and our neighbors say that it's becoming safer and nicer as people flip homes, etc. it's all families and has some nice little parks  and is quiet. There is a flip going on right across the street from our house. If your looking for deals, I would check out South Tacoma. 

Hi! 

I have a bachelors degree in ecology, and realistically I don't use it in my daily life. I got my cosmetology license after university and have been doing hair for 4 years. I love my job. It's fun, fulfilling, and I make good money. It's not a prestigious title but I don't need that. I wish I would have started my career doing hair earlier, and thus would have been in the position to start real estate investing earlier. I think everything I've learned thus far about business and money has been through self-teaching, books, podcasts, life experience, etc. 

Question for everyone! I am reading this book right now and loving it. I am wondering something. Are they evaluating a $50,000 gross salary or net salary? It may have been mentioned, but I missed it. When I think about my income I usually try to only think of my net income (as a median salary full time employee). It helps me think realistically about spending. What do you guys think? When you say you make XXXXXX salary/year, is that gross salary or net salary? 

@Jonathan Clark -- Thank you for the reply. if you don't mind,  do you have a recommendation for a company who does laundry rentals in the Tacoma area?

Another question for fellow Tacoma investors! 

What do you guys do about laundry? It's an issue I'm sure in every property, weather to have them or not. The property I'm buying (tri-plex) only has laundry in the 5 bed unit. Other tenants use a laundromat, which I think would be super annoying for them.

I am considering renting a coin operated set of washers/dryers from a local company.  Does anyone do that here in Tacoma? If so, has it worked out for you? Or is it just better to bite the bullet and put washers/dryers in each unit? Or just buy them myself and charge tenants $40 bucks a month or something to use them? 

How much does it impact renters to have in-unit washers vs. on-site coin operation? What are your experiences? Any insight is welcomed! 

Background of this question: 

I am in process of buying a tri-plex in South Tacoma. Three units. Two one-beds and one 5-bed. There is a "mudroom" kinda thing in the 5 bed that has it's own entrance (that is right next to the entrance of the 5 bed). It could easily be closed off from the 5 bed, and then turned into a laundry facility for the whole building. BUT that means that the 5 bed loses their private laundry. It also means I have to buy/deal with laundry machines. Is it a bad idea to offer a 5 bed WITHOUT private laundry? Am I shooting myself in the foot? 

@Curt McClements thank you for the tip about Rentometer, I am looking into that now. You mentioned having a lot of interest in your rentals, what is your strategy for advertising to potential tenants? 

@Suzanne Nelson that's awesome!  How may bedrooms do your rentals have? The place I am closing on soon has five bedrooms in one unit! I almost feel like that's tooo many. 

@Curtis Bidwell Thank you for the insight and numbers. Nice that you can get $2500 for a 4 bed!  Our offer was accepted, and I'm looking forward to entering into a competitive rental market.