All Forum Posts by: Jake Faris

Hi all - I have a 3-unit multi-family property (3 bed 3 bath, 3 bed 3 bath, and studio) with an unfinished basement and an attached 2-car garage that I plan to remodel soon. The unfinished basement is 900 sf and the garage is 721 sf, so this could all add a lot of value. So far, I've rented one of the units (3 bed and 3 bath) as an STR and the two remaining units as LTR.

The property is zoned as mixed-use tourist commercial, which allows me to convert the property into a motel/hotel. This would also mean that I could convert all the units into STRs. Does anyone have any experience with converting a multi-family property into a motel/hotel? What are the pros and cons to making this transition (e.g., tax implications, insurance, etc.)? If I'm missing any existing threads that covered, please share! 

@Jake Fugman Thanks, Jake! I’ll check them out. By the way, great initials. Does your middle name also start with a “K”? 😁

@Robert Freeborn Thanks!

Hello! I recently became a licensed agent to buy and sell my own properties here in Washington state. I have a full-time job, so only expect 1-2 transactions a year (possibly more for friends and family).

I currently hang my license at a brokerage owned by a friend, but am curious if there are other options with lower fees paid to the brokerage firm. I find that his other agents are full-time, so the commission structure, fees, and resources and tailored as such. What options are out there? Any local, part-time agents out there find a good brokerage firm they can recommend?

Thanks for your help!

Thanks for letting me know about the Meetup Group, @Alex Chin!  I joined the Group and will try to make it out on 8/31.  I'll definitely make it to one of the Eastside meetings as it is much closer to where I live/work.

-Jake

Thanks for the welcome and advice on RE school @Ryland Taniguchi!  You make an excellent point in that specialized knowledge is crucial to successful investing and Portland may be too much of a stretch.  It might make more sense to team up with someone.  How specialized (2-5 neighborhoods or zip codes) are each of your agents?  And for the example on the last flip offer, how'd you manage to get mutual acceptance at $37k below asking with contingencies?  Although the valuation came at $145k, that's still quite impressive.  

When you're referring to the "realtor thing", I'm assuming you mean adherence to the Realtor code of ethics.  I should have clarified that I do not plan to be an official realtor, I tend to use realtor and real estate agent interchangeably, a habit I should stop. 

Thanks again for welcome and advice!

-Jake

Hello BP community!

Thanks for providing an amazing platform for a semi-investor like me to learn the ropes of REI with the impressive quality of people and breadth of strategy/tactics that are so easily accessible.

As for a little background, I'm in sales/business development for a software startup and have been living in Seattle for over 10 years. I purchased my first condo in mid-2013 for $215k soon after graduating from college, and could not stop myself from checking new listings months after moving in. My genuine interest in REI, along with positive market conditions in Seattle and low interest rates, led me to take action, as I recently purchased an owner-occupant condo. Since my purchase in March, similar units in my building have recently sold for 15-30% more than what I paid. My plan is to update/modernize this condo and rent it out next summer (we're close to the University of WA) - my first condo is already rented with positive cash flow.

Although I'm happy with the position I'm in and how things have unfolded, my only regrets, with the obvious benefit of hindsight, are:

1) Purchasing my first condo with a "consumer" mindset (what are MY neighborhood requirements, how long is MY commute, etc.), rather than with an investor mentality (what is the expected appreciation rate, what are the rental comps, etc.)

2) Purchasing my second condo with a realtor, as opposed to getting a license and completing the transaction myself

#1 is no longer an issue as I've shifted to investor mode. As for #2, my immediate plan is to become a licensed agent and transact through my friend's brokerage firm. Although I still have so much more to learn and experience on my REI path, I'm confident that I can reap the financial benefits of becoming licensed and purchasing my own properties. I already did the majority of the work for my second condo as I scoured Redfin and Zillow listings for the best property; I went to the open house and initiated the negotiation process with the seller's agent; and I outlined the details of the offer. Next time around, I'll get paid for all the extra legwork.

In addition, being one of the first to buy multiple properties among my friends, there's also the possibility of buying and selling as their agent since some are already coming to me for advice. A missed opportunity by my agent when I purchased my first condo was not educating me on the potential investment strategy, although I take most (OK, all) of the blame for this. REI is not for everyone, but understanding the potential upfront would've been immensely helpful in making my first real estate purchase.

A couple questions I have are: 

1) Where's the most cost-effective place to fulfill the real estate education requirement for Washington?  My friend with the brokerage firm suggested the Rockwell Institute.

2) As a WA licensed agent, is the education requirement to be licensed in OR and/or ID waived?  I find the Portland market particularly interesting from a Buy and Hold, and Flipping standpoint.  Can't seem to find an answer online so hoping someone here has had a similar experience.  

Anyways, my introduction went much longer than I expected, but thought it'd be best to provide a comprehensive bio in a single post. Thanks again and looking forward to learn, network and contribute to an already stellar community of people that share my REI passion!

Thanks,

-Jake