All Forum Posts by: Simon Wold

Hey Maria-

I would recommend moving just south of Seattle into Tacoma, Lakewood, Olympia, etc.. I have been running numbers on every multifamily that comes on the MLS from Olympia to Marysville for about six months now, and have found that the best returns are always just south of Seattle.

Once you narrow down your area I would recommend finding an agent that knows the area like the back of their hand.  They will be able to give you advice on which areas / streets to avoid.

Are you going to move to Seattle? Why do you want to invest here? If you are going to be doing out of state investing, it might be worth looking into somewhere you can receive better cash flow at a lower cost.  Also keep in mind that Seattle becoming very tenant friendly.

Hans

@Curtis Bidwell yes, it is located on Trailblazer. Thanks for the great market insight! 

I will be managing from Seattle, which will be hard.  This is why I am running the numbers with a 10% management fee.  I have a feeling I will want to sub this out at some point.

The feedback is great.  Thanks for the posts!

Sorry, purchase price of 635k. 

Property tax estimate is based on what the current owners paid.  I assume this will increase when the property closes?

Hello All-

So I have an 8 unit under contract in Olympia, WA.  I would put the address / purchase price on here, but I believe that may not be legal since I haven't closed yet? Anyways, zip code is 98503.

Information is as follows:

• Total monthly income : $5545
  • Five units at $725 / month
  • Two units at $675 / month
  • One unit at $595 / month
• All units are 2 bed / 1 bath @800 square feet each
• Coin operated laundry (income from this is not included because it was not provided)
• Consists of two 4-units on one parcel
• Ann Tax: $4100
• Wtr/swr/grb: $5256
• Insurance: $2896
• 25% down payment with ~4.5% IR
• Assumptions: 5% vacancy, 10% for maintenance, 5% for Capex, 10% management fee. I am going to be managing the property, but I like to assume a management fee for safe measure.

Why the property spikes my interest: Rents in the area for a 2/1 are $850-900.  From what I have gathered, the current owners aren't managing the property well and that's why the rents are so low (they done speak English so its hard to communicate).  With a little work I can easily increase rents to market value.

My main concern: Property is on septic.  From what I have gathered, the whole neighborhood is.  I am not seeing any sewer covers in the road.

Would anyone recommend this for the BRRR strategy? Thoughts / recommendations? This being my first multifamily deal, I am finding myself questioning my thinking.

Thanks in advance,

Hans

Would like more info.  [email protected]

Thanks for sharing the knowledge!

@Jacqueline Cliff could your PM me your referral?  It would be much appreciated.

Hey-

So I am looking at putting an offer on an 8 unit apartment building in the Seattle, WA area.  My only hesitation is that the building is on septic... does anyone have experience with multifamily septic systems?  What kind of maintenance cost are associated with being on septic?

Should this be a big concern for me? I feel like it can lead to problems down the road. 

Thanks for the advice guys.

Called the utility company and they mentioned that the building has sub meters for each unit. They bill the owner and the owner reads each meter every month and preforms a charge back on the tenants. 

The owner is saying they just pay the electricity and don't charge back to the tenants... this could be why he is getting $700/ month for a 1/1 when the average in the are is $635.

Looking like a charge back was done in the past, but was unsuccessful...

Hey,

So I am looking at a 22 unit deal in Lakewood, WA.  Going through the numbers I noticed that the building currently has one master meter for electricity, which the owner pays for out of pocket.  Does anyone have experience with going from a single electric meter to multiple? It seems to me that the costs associated with this would be astronomically high?  Would anyone recommend doing this as a value add play?

Thanks in advance!

Hans

Ya, that is what I figured. Thanks @Patrick Philip!