All Forum Posts by: Greg Harriman

Take a look at a house like 20429 Filbert Dr in Bothell.  I haven't run numbers on it but I'm pretty sure you're looking at a monthly rent of $1,900.  It may make sense to confirm it'll be within the new North Creek High School boundaries and when that opens I think you'll see rental rates continue to edge up from there.

In terms of your numbers, I rarely consider appreciation as part of my calculation but that looks reasonable, however, your closing costs are low.  You'll likely pay 1.5-2% (using companies like Redfin) and another 3% from the buyer's agent and then a bunch of fees (like a 1% fee that some cities charge to sell - i.e. - Bothell).

Good luck with the search and be sure to let us know what you end up doing!

@Rob Deweese Is this a case where you have to move into the property you purchase?  I know you'll get a better mortgage rate if your "intent" is to make it your primary but I'm wondering if there are other option here, like buying a house in the $350k range and renting it out for $2k a month.  I know of a few solid options like that up here in Bothell and that would shorten your timespan to save up and purchase another a few years down the road.  But, if you're looking to lock in while the market is like this, I don't blame you going for the more expensive property.

If it's something where you need to live in it and rent out your old place, I'm pretty sure you can get more than $3k a month if the house is worth $650k.  Is the house located in Seattle itself or over in Redmond?  

Hi James, I'm in a similar situation to you (5 properties with mortgages) so I'm very curious to hear how others respond.

I'd assume you're looking at a Buy and Hold situation, correct? The only way I can currently see myself getting financing (without having to pay 10+% annually) is to save up enough to put down in order for my DTI ratio to be low enough for a Portfolio Loan lender to approve me.

From what I've seen of Portfolio Loan lenders, they're looking at my personal income at 100% and then add 70% of my rental proceeds per my schedule E.  Then from there they look at my combined debt payments for my personal debt and 100% of my mortgages.  If my monthly debt to monthly income (taking into account only 70% of my gross rental proceeds) ratio is above 50%, they're not going to approve me.  If you are above that 50% threshold, you're likely taking on more risk than is smart, IMO.

Now, depending on the equity in your other properties, you may be able to do a cash-out refinance and make the numbers end up in your favor so you have enough money down to get below the DTI limit, but that takes time.

Just curious, are you finding properties in Seattle that can cash-flow from Day 1?  I'm still fairly new to this market and would love to find a breakeven property with good appreciation potential.

Good luck!

Hi everyone!  I'm new to the BiggerPockets community but have listened to the podcast for a few months now.  I love hearing people's different viewpoints on how they increase their net worth using real estate!

I'm hopeful that the community will open my eyes to opportunities that align with my overall goals, which are first, to build my net worth through real estate acquisition and appreciation and second, to eventually (20-30 years from now) have the right mix of assets that will maximize my monthly passive income.

I look forward to learning from you all!

I currently live in the Seattle, Washington area but in the past have lived in the San Francisco, Phoenix and Chicago metropolitan areas.

I've used Washington Federal before for a cash-out refi and they made everything easy. Their rates and total fees are better than anything I've found and I ran through numbers with several different lenders. I'd at least consider them when doing your due diligence. Just keep in mind that cash-out LTV and second home LTV requirements (approximately 70% and 75%, respectively) which would mean that you're looking at a total appraised value of $700k max across both properties. That may be a stretch in Seattle depending on where you're searching. All lenders will also consider debt to income ratios and whether or not the leverage you're considering is too much.

Nik Krohn I would agree with others then that it might be time to sell and use your equity elsewhere. My opinion of Maricopa is that it exists solely because of the pre-2008 housing boom in Phoenix. If for some reason you want to keep your money in AZ, I'd recommend Tempe, Mesa, Chandler and Gilbert as cities with the best opportunities. They're all growing, within decent proximity to large employers and safe communities with decent schools (except for Mesa which has awful schools but homes are much cheaper). Just thought I'd offer up my two cents!

Nik Krohn just curious, what city did you buy in? I grew up in the Phoenix area, own a handful of houses there and thought I could give you a very quick opinion on market value of both the house and monthly rent. My gut tells me if it hasn't appreciated since 2013, you bought in an area with poor schools. The areas with higher performing schools have done well as of late.

Sorry, I can't be of any help but I too am considering investments in Arlington. Why do you look there instead of areas like Monroe or Snohomish? Is it because you are developing versus a buy and hold strategy?