All Forum Posts by: Juan Silva

@Bill Jacobsen to make sure I follow your rationale, please help me understand what you'd consider my cost of money to be in this example. Can you also help me understand what you mean by:

"If I can increase revenue I am only going to pay 50% for it since I am doing it, not the seller."

Thanks in advance for your guidance.

I'm considering putting an offer on a NOO duplex in Pierce County, WA, and since this is my first time jumping into the deep end of the pool :-), I'd appreciate a review/spot check from this seasoned BP community to make sure I'm not missing anything. Without further ado, here's the annual financials:

1. Offer Price: $199K

2. Financing & Mortgage: 25% down, 30yr Fixed @ 4.625% = -$9194

3. Scenario 1 - Based on Current Below Market Rents:

a. Total Expenses: -$6152

i. Property Tax: -$2652

ii. Insurance: -$890

iii. Maint & Repairs @10%: -$2310

iv. Other Admin: -$300

v. Self PM: $0

b. Gross Income: $21175

i. Rental Income: $23100

ii. Vacancy @ 8.3%: -$1925

c. NOI & Cap Rate: $15023 @ 7.56%

d. CF: $5829

e. CCR: 9.77%

4. Scenario 2 - Based on Increasing Rents To Market Rate:

a. Total Expenses: -$6482

i. Property Tax: -$2652

ii. Insurance: -$890

iii. Maint & Repairs @10%: -$2640

iv. Other Admin: -$300

v. Self PM: $0

b. Gross Income: $21175

i. Rental Income: $26400

ii. Vacancy @ 8.3%: -$2200

c. NOI & Cap Rate: $17718 @ 8.92%

d. CF: $8524

e. CCR: 14.29%

Scenario 1 would be the current reality with Scenario 2 being the upside potential. Am I missing anything from these numbers? Does this read as a good investment on paper?

Thanks for any and all feedback.

I'm analyzing a potential duplex investment in Spanaway, WA near Joint Base Lewis-McChord. Does anyone have data supporting a vacancy rate other than the standard 8.3%?

Thanks in advance for any/all responses.

@Patrick Britton glad you were the person I remember meeting. I'm originally from Rhode Island (about an hr south of Boston), but have lived in lots of different places so my accent isn't what it used to be :-). Appreciate the PM you sent as well.

@Aaron Sal  although it might be a bit farther north than you'd want to travel, here's a link to a Snomohish County Meetup group you might want to consider joining.

http://www.meetup.com/SnoCo-Connected-Real-Estate-...

I'm sure there are other Meetups down south, and if/when you find them, please share the links :-)!

@Stephanie Dupuis  thanks for reaching out and I'll send you a PM to connect further.

@Jay Hinrichs  Never heard of or been to the places you mentioned, so thanks for the recommendations. Any insights into what the vacancy rates and/or tenant quality might be in those areas?

Also, do you have any knowledge of the Bremerton, Silverdale, Poulsbo markets? As a former Navy guy, I'd potentially be interested in those areas if the numbers made sense.

@Patrick Britton Forgot to ask one more question. As a lender in Blaine can you refer any investor friendly realtors that can help find good multi-family deals in Whatcom County?

@Patrick Britton  I'm definitely looking in Snoho County (Everett, Marysville, Arlington) and concentrating on multi-family as well. I've looked at a few in North Everett, but the numbers either didn't work or the neighborhoods were pretty suspect. I've also connected with @Account Closed who's been investing in Everett for a while, so hopefully an opportunity will present itself soon.

BTW did you attend a Snoho Meetup a few weeks ago? Presuming so, I believe we met briefly on your way out the door for your 2hr trek back to Blaine; bonus points for being such a road warrior.

@Eric B. I'm thankful for you validating my findings as well. I also appreciate the Detroit lead, but considering most of the town lost power/went dark today and I'm just getting into REI, I don't think I'm courageous enough to take on an urban jungle like that :-).