All Forum Posts by: Jeffrey M.

We did a cash out refi for our first SFR rental. The interest rate was about 3.8% at the time (its probably lower now) and its basically like a second mortgage against our primary residence. We went this route mainly for the interest rate: if memory serves HELOCs seemed to be a full interest rate point (4.7% and up) and that made a significant difference in the whether the property would cash flow, break even or possibly lose money. We are doing OK with rental: good tenants and positive cash flow but we're now trying to solve the puzzle of how to finance REI #2: another cash out refi against our primary, a heloc, etc.. I can swing a hammer and find deals but the financing part is a puzzle. So, if the numbers work with a cash out refi, I'd say that's your most convential and safe option and it worked out well for us.

+1 for Uptic Studios

I attended my first LLA meeting this month and I felt review of current state of affairs and a speaker or two on targeted topics was helpful. too many people for an intimate networking session but i'd like to see that too... maybe a quick around the room intro of your current state of REI affairs and what you want to get out of the meeting. but I am a newbie with a single REI and a new tenant literally moved in on that home yesterday!

Firmly agree with @David Clinton III, 6pm better than 7.

+1!

Sounds good. But, fair warning... I am in DEEEEP reno right now. All weeknights and weekend until January are spent renovating this property. I know a lot of people feel I should hire someone and work on my next REI but to me, saving the money DIY is what will allow me to do this again. Obviously this won't scale later but hey, "first world problems" ! "

I believe I'll be at the next meetup on the 26th though and some after that: https://www.meetup.com/Spokane-REI-Group/events/kpxkkryzqbjc/

@Jason Hammond thank you. I did look up 2% rule a while back but being very new to this I have been unable to locate any deals that meet the 2% rule here in Spokane *in* the neighborhoods I am looking in (specific parts of the south hill, so perry, garland, etc.). I'm not saying they don't exist, I'm saying my skill level (newb) has yet to uncover any. I am getting wholesale deals in my inbox and MLS emails too but I'm looking for specific areas that I have a comfort with and renovations that I feel I can tackle financially and mentally. In fact on my first REI which I closed 2 weeks ago, according to the 2% rule I should charge $3980 a month in rent but the spec and location of the house after renovations will be around $1400. Did I get ripped off? Maybe? I got it 20K below asking and putting about that much into it and at 1400 I can cash flow a few hundred a month. So, to answer your question, 2% rule doesn't seem to work for me. My approach was to use the BP calculators and check the cash flow and of course that relies heavily on a projected monthly rent value which is why I posted this message. If you're able to make the 2% rule work here in Spokane, I want some of that juju you have! ;) :)

Here in Spokane WA you need a WA state business license and a Spokane City short term rentals license ($100 annually) for any rentals shorter than 30 days. 1 month minimum AirBnB rentals are exempt from this, at least for now. We are toying with doing AirBnB on a SFR with a 30 day minimum.

Since my last post, we closed on a 1910 bungalow and are doing 50% of the rehab ourselves. This is our first SFR REI and are busy little beavers!

We are subbing out the specialty items:

Complete re-do of the knob and tube electric (we knew it going in and built that into the offer) but like everything its going to cost a little more than I expected (mainly because we added some items to the project scope) so that forces us to do a little more to make up for that overspill.

So we are doing: minor plumbing, LVP flooring in Kitchen and Bath, refinishing the hardwoods ($5K savings), replacing vanity in bath, complete removal and replacement of the kitchen cabinets, painting and trim work, some door and hardware replacement and a dozen other little cosmetic things.

Sometimes to make the deal work you have to do the sweat equity and make the math add up. Maybe we can afford to sub out the work on deal #2 but deal #1 is going to be a lot of work for us. But, YouTube is a tremendous resource and I have a couple of channels I watch regularly for clear explanations on how to do these projects. If I had more free time, I could see myself enjoying it ;)

I can't speak for TX or the west side of WA, but Spokane has been discovered and is pretty competitive, and currently a seller's market but deals can be had thru due diligence. The rental market is strong here.

>> If you are liberal move to Washington...

I hear ya, but this only applies to the west side of Washington. Travel east of the Cascades and its purple and red and Spokane has a Republican Congresswoman.