All Forum Posts by: Account Closed

@Michael Valle low/no fees and "great job training new agents" don't usually go hand in hand. That being said, I work with Champions Real Estate Services based out of Lynnwood. They have a great mentoring program but as with most places with mentoring programs, charge bigger fees in the beginning. However, once you get a few deals under your belt the splits are much more favorable.

Good Luck with your search!

@Rudy Manna congrats! Did you touch any of the plumbing or electrical? How were those systems?

@Heather R. congrats on such a popular post! You definitely hit a hot topic question here on the forums. To answer your questions: each fourplex we own ranges from $1500-$1800/mo for insurance. Then yes, 10% management fee would more than cover management + leasing fees.

@Heather R. Yes, you are being too conservative. No offense to everyone who has responded thus far but they are all from the midwest or CA or wherever....I own 35 units across 9 buildings in North Everett. Six of them are fourplexes and insurance is about $1500-$1800/yr on the fourplexes. You can find quality PM services for 6-8% that charge 25-75% / mo rent for placement. You will not need placement every year so your leasing fee is way too conservative. A flat 10% will more than cover PM services. 8% will actually do the trick with the right firm. Your rents are too low. As-is those units will rent for $750 easy. With updates I would use minimum of $900/mo depending on level of updates (other folks are analyzing them with $1,000/unit I bet).

Finally, CAPEX is a tough one because it varies greatly from property to property. We are looking at late 80's built 8 unit with updated windows and newer roof and are using 4% Capex. Then we have early 1900's built buildings with old plumbing, wiring and original windows were 10% is much more warranted.

My brother lives in North Tacoma and I love that neighborhood. But as @Ike Hobbs mentioned, most folks are buying for appreciation in that neighborhood. You may have to move to the south end of town to make much cash flow. Check out North Everett too. Deals pop up up there every so often as well.

@Wes S. Everett multi-families are my jam! Kind of like you and new spreadsheet formulas. My wife and I own 35 units  across 10 buildings in the down core (north Everett). That is were I would recommend placing your hard earned $$$. There are lots of great things happening in Everett now with developer funds flowing in, a four-year Washington State University campus opening and the steady flow of folks moving out of Seattle looking for a more affordable spot. The future looks bright and you can even find some cashflowing properties still.

@Levi McDaniel I took the trek to the area a few years ago because the numbers were so gosh darn appealing! The 20 abandoned houses on the same block were not. I hear ya!

@Jason Emery one thing I love about real estate is that the investment is a tangible asset and I can have a large influence on the success of the investment. Therefore, I invest locally and work on and drive by my properties often. I also work with other investors who outsource the management to my firm and we map out and update strategies for their investments on a regular basis. Investing out of state seems like investing in the stock market to me. Too many variables that are out of my control. That's just my two cents.

Best of luck and don't think too long and hard before pulling the trigger or you may never pull it. Everyone told me I was crazy for buying everything I possibly could a few years ago. Now they all tell me how lucky I am.

@Michelle Summers How is Tenant Turner working out for you? Very interested in this discussion.

Thanks!

@Heather R.we own 5 places that have multiple buildings on a single tax parcel in everett. Most are "fourplexes" with a triplex in front and standalone in back. People love the standalone units because they are like a house but owner pays WSG. As such we receive ALOT more rent for these units. As mentioned there is more upkeep and insurance pretexts the two buildings individually. We have had zero issues financing them with conventional loans. Good luck!

@Jerry Lundergard I would get a HELOC on the Seattle home and combine that $200k with the saved up $150k and put 25% down on a $1.4M apartment complex in your local area. The bigger the better in my opinion. One roof, one electrical system, one plumbing system etc.