All Forum Posts by: Justin Brown

Reaching out to the  BP community and hoping to get some advice. I've got a tricky situation, first some background: this is a duplex, in Berkeley, and we are doing a complete remodel in a A- property/area. The unit I'm talking about has three bedrooms and two bathrooms currently...one with a tub/shower and the other with just a shower. The one with the tub is off the hallway and the one with just the shower is connected to the master bedroom. 

We think laundry in the unit is a must...the only problem is there isn't an obvious space for it, so at this point we have three options we're considering:

1. put the stackable washer/dryer in the kitchen...there is enough space for it, but it would be sandwiched in near the fridge CONS: laundry may smell of food? may be difficult to do laundry and cook at the same time because area will be congested

2. remove the shower in the bathroom in the master bedroom and put the stackable washer/dryer there, leave the toilet and sink so it's still a half bath CONS: tenants will lose second shower

3. put the stackable washer/dryer in the kitchen...but not in with the fridge/cabinetry...on the opposite corner of the kitchen, where the dining area would be CONS: this will take up space in what is already a cramped dining area...and may make it difficult to fit a table, also may feel random in opposite corner by itself

4. build a little room outside of the building and down the stairs and put the washer/dryer there CONS: tenant will have to go outside to do laundry and down stairs

Please weigh in if anyone has experience with washer/dryers in unconventional locations. I need help!! Which do people consider the best option?!

Why are people obsessed with talking about millennials?? I don't get it. Like a fool, I clicked on this post thinking it might offer some insightful, empirical data...but, no...just a bunch of anecdotal, irrelevant, b*llshit. 

@Ray Dipasupil yes I guess it's possible they got it wrong, just funny..that this is the only one inconsistently priced..based on all the others I've looked at

@Cary F. thanks for the info..I think you're right, I'm going to just stick to what my numbers are saying...even though it seems so counter-intuitive to be offering more than the 2007 value

@Cary F. guess it depends on how low rents dropped during that recession, but based on what rents dropped to last time during the recession in this same area..I think I'd be fine. that's what I find so odd?? 

Here's a question I thought I'd take to the forums since I can't seem to wrap my head around it...

I'm currently looking at a multi-unit and the numbers look good as far as the monthly cash flow, ROI, price, rents (relatively stable), etc. BUT, generally as part of my analysis I look at the value of the property over time according to the local assessor's office and it looks like the property is now being priced higher than it was in 2007 (at the peak of the market). I've never run across this situation in this particular area and I'm trying to figure out how the numbers seem to work out well, the rents have remained pretty consistent, yet the price is beyond what it was at the peak in 2007. The only thing I can think of is that the assessor's office got it wrong..??

Has anyone got any ideas? Anyone seeing this in their area?

@Tyler Blackwell the property is actually in Tumwater, but it's a good deal I think. My concern with the septic is that this will be a rental property and I'm concerned tenants may lead to costly maintenance. I don't need a real estate agent, I have one...my question was more whether I should bother getting my real estate agent involved with this transaction if I don't have to. I'm not local, or else I'd stop by the store you mention. do you know if the same Washington specific contract template available online? I've never done my own contract so I'm a little nervous about it...I'm going to look into your suggestion of working with a title company though, sounds like they would be a great resource!

@Dan Denton Hey Dan, you're in Olympia, which is where I'm primarily looking to invest! Thanks for responding...we should connect.

Yes, I will use the current rents for my offer and I've already factored in regular repairs and maintenance as well as bigger capital expenses (the roof is new). After all of those costs (assuming the seller is willing to take off 25k for the septic), I'm looking at a conservative monthly ROI of about $350...which seems decent. What do you think? I'm finding that properties in and around Olympia are going for prices above what it'd take to get a decent ROI. Has that been your experience?

Also, does anyone have experience finding a property on their own and then engaging a Redfin agent to help them close the deal?? Trying to do some research on the cost of going this route and whether it's necessary first before contacting the Redfin agent I've used in the past and getting them involved...

@Tom S. Thanks for responding so quickly! I think I'm going to take your advice and just do conventional bank financing...better interest rate, better term, and more straight forward because I've done it before. I have a feeling they are going to want 25% and not 20%, but I think I can make that work. 

So then, I'll make my offer at 25k less and hope the seller accepts, use my real estate agent, pay her, get an appraisal as part of the closing process, and hope it all works out. The seller mentioned not wanting a seller agent and not wanting this whole process to be a lot of work...so I'm trying not to scare her off, but I also don't want to make a stupid deal on my part.

So here are the stats on the property I found:

Found owner through yellow letter, asking price: 178k, near a mid-sized city in WA state

2 bed/2 bath on each side, somewhat updated and in good condition (pretty standard look with off white walls, basic carpet, etc.) New roof, carport, safe part of town near school.

Rental average approx $720 per side currently, market rate more like $850/side at least.

The owner is willing to do seller financing...so how should I move forward???

My only concern is there is a septic system! So here are my thoughts for moving forward, BP community provide feedback if you have any!

_________________________________________________________________

Get my RE agent involved and pay her cost to help draft paperwork and orchestrate financing. Offer 25k under asking price ($153) because of the septic system. I want to hook up the duplex to sewer and this is at least how much it will cost (I checked with city). Ask owner if she will seller finance for 15% down. Up the rents when I purchase to $750 for now. Anyone have any tips? This property hasn't been listed, so I'm trying to move fast (but smart).