All Forum Posts by: Evan Mack

They're just downsizing to a single story home now that their kids are all gone and they're preparing for retirement. It sounds like they have a lot of equity in their primary residence so I'll definitely be discussing the tax implications and encouraging them to discuss with their accountant.

I met a couple who bought a 2bd/1bth in Washington near a great area for $104k. It was the property next to their primary residency and they got it just to knock down trees so they could have a better view of the mountains. This was a year ago and they haven't got a tenant. 

They're now selling it and their primary residency and I'm meeting with them about buying it and am going to present seller finance as one of the options. 

I want to make sure I hit all the reasons why it would benefit them. What should I include on that list?

They'll be retiring in 5 years.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $223,000
Cash invested: $20,000

Bought 3 bed/2.5 bath for $223k with $20k down, put $12k into cosmetic upgrades and added a lot of sweat equity.

Just refinanced to get rid of mortgage insurance; appriased for $355k!

It has been a live-in-flip mixed with house hack style investment. Rent out both extra bedrooms so I only pay $500 per month including capX and maintenance.

Bathroom was an insurance issue so that helped because I was able to upgrade with nothing out of pocket, just a lot more sweat equity.

What made you interested in investing in this type of deal?

Good neighborhood, priced well below market, only needed cosmetic work. Could rent out other rooms to limit my monthly housing costs.

How did you find this deal and how did you negotiate it?

MLS offered a little over asking because there was another offer

How did you finance this deal?

FHA, refinanced to conventional

How did you add value to the deal?

upgraded the entire downstairs flooring (on sale at Costco - materials and labor for 900 sq/ft for $2,500)

new cabinets, countertop, and backsplash for $8,000

master bathroom was $5,000 upgrade for nothing out of pocket (thanks to a water leak)

other upgrades around the place including landscaping and painting for about $1,000

other minor upgrades around the home for

What was the outcome?

Appraised for $355k and I was able to pull all my money out during refinance and keep monthly payments the same since I no longer had to pay mortgage insurance

Lessons learned? Challenges?

Get your hands dirty on the first few deals to save money but also to learn.

Call around, hunt for deals, and you don't know the answer to anything until you ask. "No" is not a scary thing to hear, but "you should have..." is.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Kaitlyn Marty at Windermere Abode in Tacoma has been amazing. My sister is also an agent in Yakima and her insights are valuable (Chelsea Mack).

I’m looking for resources for discount priced cabinets and countertops that delivers to Puyallup, Washington. Anything local or online?

@May Emery where do you get your lists for marketing? I haven’t done mail yet.

@Mike Flora I love this advice. I do have some marketing in play already thanks to some great advice I got from another investor. This money is my down payment or rehab funds for the next deal.

@Jay Hinrichs interesting. Where can I find more information about that?

I’ve started saving up money and I want it working for me while I’m looking for my next deal? Real estate is my priority, but money sitting in my account isn’t doing much for me while I look.

What do you recommend I do with my money to get a good return in the meantime?

What are you investing your cash in, other than real estate?

I’m looking to get bids on replacing some windows in a historic building in downtown Seattle.

These are large windows and my normal contractors won’t touch them because they don’t do this type of specialized work.

Does anyone have any experience with contractors in the area that could do this work?

Hey Robert, 

I've been wondering about fix and flip - it isn't my main objective (buy and hold, especially multifamily) but I'm looking at it more and more as I run numbers on small multifamilies and find they won't work. 

I've got a great realtor (luckily, my girlfriend), contractor, and have connected with some hard money lenders through friends that flipped houses before 2008, so it feels like I'm set up to try it out. '

Any suggestions on where to look and what to look for? I'm assuming value adds like another bedroom would be wise. 

Also, I'm curious if your strategy has changed with the cooling of the Seattle market. The only thing that would hold me back right now is that it would be my first flip which means it could take longer than expected while the market cools and my ARV no longer works.