All Forum Posts by: Jeff Dzado

You should be able to ask information in a theoretical sense.  

"I'm looking at a property zoned *, can I xyz?"

For some reason I can't get the Federal Way zoning maps to open on my phone... But here is the code which describes the zones. There appears to be no "R" zone in Federal way. I started reading through it, but don't know the details of what consists a dwelling unit. Does it mean building? Does it mean place where x number of related persons live? You may have to research if there are any Federal Way rental laws, rather than just zoning laws. 

https://www.codepublishing.com/WA/FederalWay/?Fede...

This should all point you in the right direction to find the answers you need!

Check the zoning, if you haven't already! Also, check and see if there were permits pulled to turn the garage into living space. These are things you might come up against in the future that would be a pretty big risk.

Checking the zoning (or talking to someone in Federal Way permitting office) should pretty clearly tell you whether or not it is legal.

Edit: I read it a bit closer...check the zoning rules to see what is included in the R zoning.

***also, some HOAs are more strict than the zoning might allow. I'm not sure what my current zoning is, but my HOA has restrictions about how many families can live in a house in my neighborhood... That and the minimum rental term...and no less than the full house may be rented.

I've seen some HOAs in pretty rural areas, so it is worth a mention...

Hi there! I'm not an expert in any of the above, but it depends on your zoning. I googled "residential zoning Tacoma" and found a map and a document which describes the zones. If I were you, I would 1) find the zone the property is in, and 2) look up details in that document, and 3) if the document isn't clear (some zones in some locations have a residential 1-4 which allows most properties to have up to 4 units...I don't know what Tacoma is like) I would then call up my permitting office (or drop by and become friendly) and ask for clarification. 

If you're not in Tacoma, keep poking around until you find the right map or descriptions... or skip straight to step 3 (they will have the above info which you might be able to figure out by yourself).

Happy hunting for the info!

Tacoma map: https://wspdsmap.cityoftacoma.org/website/PDS/Zoni...

Document (may be out of date, try to find it on the locality's website directly, or also call/visit the permit office and ask them where to get the latest doc): https://www.google.com/url?sa=t&source=web&rct=j&u...

I've got no experience in this area...but if it were me, I would start calling electricians and plumbers and asking them if they do that type of work (running utilities across the property), or for a reference of someone they know that does.

It also never hurts to call up (or visit) the permit office or have a chat with the inspector. Lots of useful information can come from that.

@Brian, I live pretty close to there. I like your thoughts as well--I had similar ones, but not so concise. This property is less than 3 miles from the hospital, only a few miles from a ton of Boeing suppliers (and other industrial companies) in Kent, etc. 

I've been poking at analyzing properties like this every couple of months, as I think multifamily properties that are poorly run are interesting opportunities to me. 

I'm pretty sure if the seller could be convinced to give the valuation closer to a 5 cap rate...it looks like a really good deal when run better.

Thanks for the awesome in-depth data and references. Some random site I found (https://apartmentloanstore.com/seattle/washington/cap-loan-rates) suggested cap rates should be over 6. It is especially crazy that even with raising the rents a lot, it still is listed at a cap rate less than 5 and wouldn't cash flow. Sounds like an offer closer to $800k would be needed with the current NOI.

I really appreciate the reply.

Hi everyone. I found an MLS-listed 12-plex in Kent, WA (listing says 12 bedrooms which suggests 6 units, but describes 2 buildings with 6 units each). The units are 2 bed, 1 bath. It is listed for $2.3M. Monthly rental income is listed as $11,860. This means $988/unit average. If the NOI numbers are to be believed ($51k/year), it is selling at a cap rate of 2.2.

I quickly looked at rentometer.com, and it suggests that average rents for a 2 bedroom unit is $1600+/month.

Is this a really good potential opportunity (especially in the Seattle area) to fix it up a bit (if needed), raise rents, season it for a while, and sell? An extra >$600/month/unit in rents seems a bit crazy to me as this might be closer to $150k/year NOI (again, need to look into the NOI a bit closer). Maybe it really is just that poorly managed?

Ok, first hit:
https://en.wikipedia.org/wiki/Joseph_Kaiser

Since I know how to google, one of the first hits for "Joe Kaiser real estate" (as google suggested), for anyone looking:

https://www.atg.wa.gov/news/news-releases/pay-time...

So, it sounds like this guy was a real jerk and doing some shady things. But that doesn't really answer my question of what implications does this have if I want to look up property tax records (something I frequently hear recommended on the podcast...)

Hey everyone. So, I finally decided to look up a property that I walk by on my morning walks, and I see this notification. I'm curious, does anyone know much about this "commercial purposes" statement? To me, it seems like it is effectively against the law to attempt to reach out and contact the property owner/tax payer.

http://blue.kingcounty.com/Assessor/eRealProperty/default.aspx

"I understand that Washington State law, RCW 42.56.070.(9) prohibits the use of lists of individuals for "commercial purposes". I understand that the use for "commercial purposes" of said records may also violate the rights of the individual(s) named therein and may subject me to liability for such commercial use. I understand that "commercial purposes" means that the person requesting the record intends that the list will be used for general business purposes, including but not limited to communicating with the individual(s) named in the record for the purpose of facilitating profit expecting activity."