All Forum Posts by: Jason Khoury

Hi there,

I am wondering if anyone has any experience with owning property on leased land? 

I understand the concept of it and know that the home will not appreciate as much & lease amount can increase etc.  Just looking for some advice or any thoughts/warnings you guys may have on leased land properties.  The land is on a 20-year lease.

Being in WA state, options are limited in my area and homes prices are somewhat out of reach. If I were to go this route it would be a midterm primary (3-5 years) and then be converted to STR or normal rental property after that. The properties I am looking at are more than affordable for my income and would still allow me to save between 30-40% of my monthly income.

The property would allow for some value add, making it a potential long term BRRRR. I am not sure if renovations for a home on leased land is worth it.

Thanks in advance for any replies!

Hi Craig, 

I'm interested to hear more about this property.  I just sent you a PM!

Quote from @Katie Smith:

Hi Jason, I'd highly recommend checking with the sellers to find out if the condo is warrantable or non-warrantable. If it's non-warrantable you will not be able to get conventional financing on it so you may run into difficulty there. Also, make sure you know what the monthly HOA dues are as these can be pricey and make it difficult to make money off of the rental. Are you open to doing a few fix and flips first to build up your cash - THEN put it towards something long term?

Hi Katie, 
Thank you for taking the time to respong and share that info. 

Yes, I am definitely interested in doing some flips. I am running into budget and financing issues with that strategy being here in NW Washington State. My goal is to BRRRR at least 3 properties in the next 5 years.

Quote from @Travis Main:

@Jason Khoury To piggy back of @Katie Smith, Yearly assessments on condos, a common practice, can significantly impact property cash flow. While investing in a condo as a first investment isn't necessarily a bad idea, it's essential to be aware of potential pitfalls. I currently reside in a higher-end condo in Orlando, Florida, and obtaining a mortgage with a sub 3% interest rate was crucial for making it a feasible investment.

Allow me to share a personal anecdote that sheds light on the condo buying experience. When I was searching for a condo in Orlando, I encountered several challenges. The first hurdle was finding a warrantable condo, which proved to be a daunting task despite exploring over 20 different units. Subsequently, I found a reasonably priced unit and proceeded to secure it under contract. However, during an HOA board interview, I was informed by the HOA president about an impending $40,000 assessment per unit for major renovations. This revelation prompted me to reconsider the purchase, as it indicated financial instability and substantial building repair needs. This experience underscores the importance of thorough due diligence when buying condos.

Additionally, it's crucial to be aware of state laws governing condo ownership. For example, in Florida, there's no cap on how much HOA fees can increase annually. Therefore, prospective condo buyers should carefully consider these factors before making a purchase decision. While condos can offer attractive investment opportunities, cautious consideration and research are essential to mitigate risks.

 Hey Travis,  

Thank you for your insight and taking the time to respond.  I appreciate it!

Yes, I am definitely interested in doing some flips. I am running into budget and financing issues with that strategy being here in NW Washington State. My goal is to BRRRR at least 3 properties in the next 5 years.

Hi everyone, 

I am currently looking for my first investment property, most likely a SFR due to budget restrictions. I am in the pacific northwest and prices here are high compared to some of the investing hotspots around the country. My plan is to occupy the property for a year (to utilize FHA), then rent it out and look for a new property. There are a couple of turnkey condo's in my area that are within my price range.

Would you buy a condo as your first investment or would you hold out for a SFR instead?
Thank you!

Wow! Thank you Logan, I sent you a PM.

Hi everyone, this is my first post here.  I am a recent college grad (May '23) and getting married in August.  I am looking for my first property in NW Washington.  I am considering two properties.  Both are small, but within my budget. With rents being inflated in this area I would rather paydown my own mortgage than someone else's.  

One of the homes is move in ready, with very little potential for value add due to the awkward layout and limiting lot size.  $370k

The other property is very old (1920), with orignal electrical, windows and plumbing. The lot is 3x the size of the other option and the home has very high potential for value add. (Detached garage, larger lot, rapidly growing region) Financing would be FHA 203k.. $380k

My questions are: In todays market would you jump into a BRRR with the upcoming election and uncertainty in the markets? Or would it make more sense to get into a move in ready home and play it safe?

I know that much of it is based on personal risk tolerance but any advice would be greatly appreciated. 

Thank you!