All Forum Posts by: Jared Boundy

Wow @Account Closed, way to go you guys! It’s inspiring to hear about your journey and the steps you took. I like how you took a leap to move the Cleveland temporarily is that you could get a hands-on feel for things there. Thanks for sharing!

It's getting pretty common.  Seattle recently removed the owner occupant requirement for single family homes with ADUs (AKA-MILs). I believe Richland still technically requires that an owner live in one unit or the other. While there sometimes isn't much strict enforcement of the rules by the city (like imposing fines, or forcing you to comply), I'm not surprised that a lender wouldn't be willing to count the income from a rental unit that isn't technically allowed.  I think in order to use the full rent as qualifying income towards a refinance, you would either need to have a single lease for the whole house. 

Great story! Thanks for sharing. Your daughter is fortunate to have you helping her learn in this way.

Hi @Trevor Murphy, I think this is a good idea, particularly in a market like Seattle where properties are expensive. I haven’t done this myself yet, but I’d recommend discussing with a lender to see what it would take to qualify. I imagine at least one of the partners needs to be able to qualify, unless you’re able to come up with all cash amongst the group of syndicators. You’ll also probably want to find someone who knows how to put together syndications, as there are strict laws that you don’t wan to be violating (like not soliciting investors from people you don’t already have a previous relationship with). I’d be happy to recommend some lenders if needed. Just send me a private message if needed.

Welcome @Anastasia McGowan-Sissom! It is tough to find something inexpensive in the PNW. I've heard of some people being able to do successful flips with mobile/manufactured homes.  I think there ought to be some opportunities around Whatcom County for building tiny homes too. Will be interested to see what you end up doing.  I know a lot just start with out-of-state projects until they can build up more capital. Just set your sights and keep going!

Hi @Derek Heinz. Welcome. I can totally relate to having a 14-yr-old daughter who doesn't want to hear any more about real estate! I'll share a few random thoughts related to your situation, and you can take them with a grain of salt...You'll want to look at what you'd end up with, and what you could buy with the cash if you sell your current home. I've got a few ideas, depending on the home, on how you might increase your cashflow. You'll want to position yourself to get healthy cashflow, so that the rental income increases your income (on paper) that a lender looks at, so that it's not decreasing your qualifications for a new mortgage.  As for selling and then waiting it out, we may have some minor slowdown or plateau, but don't count on prices coming down in the Seattle area in the next 5-10 years.  Holding off to buy in a year or two is most likely going to set you up for your cash being a smaller percentage of the higher price of a new home.  Feel free to PM me if you'd like to chat more. Best of luck!

Well, depending on how far along they are next door, I'd think that developer should be pretty interested in purchasing your lot. If not, can do you have room to add a detached ADU (and maybe an attached as well)? It's all about what you can get for it and what you'd do with that money. Will you get a better return renting out the house you have, or selling and investing in something else? Good luck!

Nice @Steven Tran. Sounds like a pretty great scenario where you've shifted to turning a profit in just 2 years, and that's with you only collecting rent from 3 of the units. 

Hi @Randy B., that sounds like a nice strategy.  I'd recommend you start by figuring out what everyone is going to be contributing ($ or time, etc), and convert to an estimated $ amount, which will equate to % of equity. If your son is going to be living in a property, maybe assign a reasonable amount of rent for him to pay. You could start with what kind of return the investor partners expect on their investment, and work from there, but I think that's going to be used more to determine whether a given property makes sense. Of course, you'll definitely want to discuss with an accountant and/or attorney.

It really depends on your goals.  Yes, there are some deals around. Some because landlords want to sell and be done with Seattle.  Despite the challenges, there is such solid employment and growth in the area, that it would take several major setbacks (or several employers moving away) to stop the appreciation. If you're more interested in cashflow, you may want to look a bit further outside the city. The pandemic has made commutes largely irrelevant for many.