All Forum Posts by: Jo Lyn Cornelsen

Michael Kimmel, you are correct, the starter home inventory problem is real... many builders choose the bigger profits that come with selling luxury homes... in our area there are several new developments billed out as "affordable luxury" that start at $450,000.  

Great success story Nichole Stohler! Thank you!

Money is not the root of all evil.  The "love of money" is.  Money is energy - a means of exchange within the community we live in. 

Scott, here in Seattle there is also a building boom, and EVERYTHING is selling quickly. Most new construction is $400k and up.  Small old fixers are $250k - $380k.  

If you are buying using a loan designated for owner occupied purchase, these special needs tenants must go, and you need to give them written notice in accordance with their lease.  The seller also needs to give them written notice in accordance with the lease, and in accordance with tenant/landlord law in your area.  

90 day closing risk? If the paperwork is not complete, there is always the chance that something can happen with the deal. What if the house is in different condition than now? What if the market value changes significantly? Ask your real estate lawyer for advice. NOLO.com might be a good place for Q&A.

That said, here are some questions:
Do they know the home is being sold?  
When does the seller want to close?
Is the seller okay with a 90 day close?
Do they want to stay? 
What is their funding source? 
Can the seller teach you about sober homes?
Can you get a copy of the lease?

Did you know that special needs housing, where you rent out rooms separately but with shared kitchen and dining space, can (if you set it up correctly) provide greater income than renting to one household?

Look at all your options.  
Blessings...

Simple fact of life. 
Markets move.
Up. Down. Sideways. 
If they flat-lined... all investing strategies would be dead in the water.
Be aware of changes.
Develop strategies that work in different market cycles.
Invest wisely.

 Here's some current indication...
https://www.housingalerts.com/blog/market-reports/...

Markets continually cycle.  And lots of things contribute to crashes.

Two things we didn't know much about when we first began investing were
1. Exit planning and
2. Market cycle investing.  
Thank goodness we're more educated now. 

You are correct... that money will just fly away unless it is managed well.  
Just make sure you're not the one who makes it fly away, as she needs to conserve her funds for retirement.  Real estate in the greater Seattle area continues to escalate. 
Part of the funds could be designated for income generation... 
Does she need a place to live? 
Could she purchase a home, and rent out rooms to single elderly ladies like herself? 
That could provide for both needs.

Downside to 1 bd units?  Limits to who would want to live there.  Singles.  Couples.  No kids.  Is that a downside or an upside? 

Get a specific plan for your money management.  Dave Ramsey's Financial Peace University?  YNAB budgeting?  These are just a couple suggestions.  Might be good for the two of you to study financial management together - and get on the same page regarding money. 
Never stop saving for your retirement - believe me, the days/years pile up and you're there before you know it... you win if you have resources to live generously when you are no longer working at a job. 
Blessings...