All Forum Posts by: Jordan Sitzler

Final post update: Listed and sold.  Walked away with over double my initial estimate.  Not bad for 15k down...last year.  Searching now for where to deploy the cash.  I'm thinking about developing my land I own in Centralia, that's a mobile home park, into a storage facility and RV, while keeping the existing mobile homes.  I have about 3 buildable acres so looking at development. 

Sorry for abandoning the post here.

@Luke Anderson, yeah similar end goals. I, like most others, want a portfolio of buy and holds that cash flows well. So I’m not in love with selling it, but (update to the above) that’s what I’m going to do. I learned recently I was a little off on my figures. It looks like I’ll walk off with close to 100k vs cash flow of about 8500/year with a manager or 10.5 self managed. I decided that’s a long time to wait for that payout vs deploying the cash elsewhere.

@David Clinton III I decided to sell it. Listing in 2-3 weeks. I realized with management I’d get 8500/yr OR if I am conservative and pay off my mhp park debt I’ll get 5k/yr. I’m going to take a 3500 dollar cash flow haircut and not have a mobile home rental headache. I feel way more comfortable trimming the fat and running with a great cash flowing property. I need to find other states to buy into for better returns.

Info: I own a mobile home (with land, not in a park just a normal house) in a less than amazing part of town. We bought the home on 2/25/21 and just moved from it last week. I was planning on renting it but found out I can do an exclusion of capital gains despite living there less than 2 years, and as a married couple, we can exclude about 220k of gains. We only moved about 2 miles away so it’s a good spot to keep tabs on the property.

property: 2.95% 30 year that i owe 206k on, or about 1250/month with PITI and mortgage ins. I believe it'll rent for 1950/month. It's a 3/1.5 at 1325 sq ft. We paid 220k and think it'll sell for 320k. So the cash flow is good and paying down the principle with rent is great (I'm a cash flow guy), but I'm seeking advice.

It needs a little cosmetic love and the house next door is abandoned with a caved in roof. Some tweakers live down the road. But things in the greater Seattle area have appreciated so much that it’ll still sell. I’m just wondering if I’d be advised to sell (I think I’d get about 75k in my pocket after 1 year) or cash flow it (about 10k/yr if I did my math right). I also have a mhp that I owe 310k out of 405k on at 5% interest generating 3500/month positive cash flow, and my primary that I owe 650k on at 2.99% on a brand new 30 yr with mortgage ins being 300/month and the mortgage at 3600/month said and done. I’d love to kill my debt and liability (looking at you, mortgage insurance), maybe get a better property or just sit on cash with rates rising but don’t want to lose a cash flowing house I already own. Thoughts are greatly appreciated. Thanks!

Wow! Thanks for the quick replies! I was calling around the Tacoma, WA area and came up with poor results. Case closed here :) I appreciate you guys.

Title and description say it all.  I'm selling an investment property in Tacoma and I'm looking to move those funds to an exchange for another transaction.  Can anyone give a recommendation to one, or several, companies I can call around to and check their fees/etc.  Also, what are some things I should be asking when I call in?  You don't know what you don't know, and this will be my first go.  Thanks!

Bonus:  does the company need to be, or is it best to, be located in the general area of which I'm buying and selling?

I wish my foundation was as solid as the advice here :D  

I don't think bringing the house to level is a good idea because I'm going to start cracking drywall, changing cabinets and countertops, etc etc.  Floor gets warped and funny things happen.  I just need it to be stabilized.

I'm no foundation expert here but it's either a pier foundation or crawl space.  It has a crawl space with beams running the span of the house.  The beams rest on the foundation along the outer walls, but someone has added supplemental supports as piers all over the place underneath.

Price to fix was quoted at 32k, disincluding any piers which they said were unnecessary.  Does not include pulling the county permit at 3500.

I'm posting in the buying and selling section because my rental is on the market to sell.  Inspector came back and said that my house needs some attention underneath and that it needs to be done before selling.  I had a pending offer but the buyer walked away after getting this info.  

I had one company come out and take a look as the buyers agent had scheduled a quote with them before walking away.  They quoted me a rather large sum of money and I feel it may be a little too thorough or more than what is needed.  It's a 100+ year old home and has a drop of nearly 6 inches on one corner, 3 inches on another, and 4 on a 3rd.  There is no way to know if it has stopped settling as I have only owned it since January this year.

So my questions: do I need to do major repairs prior to selling the home such as lifting the post and beam foundation, or can I just shore up the posts underneath? Can I just discount the house to the sum of needed repairs and still have a buyer get FHA or VA with that kind of drop? And finally, any contractors and foundation people you know around Tacoma, WA would be greatly appreciated. Feel free to PM as well.

Thanks!

In the majority of Western Washington, home prices are so high that renting is just cheaper.  Not everyone bought their home in 2009-2011, and not everyone has the knowledge or the ability to find a great deal on a property to call their own.

A 3/2 in the South Puget Sound area will set you back about 1400-1750, or cost about 350-450k to purchase.  With maintenance it's just not a question.  

Not to call anyone out, but I feel the original question shows some ignorance on what people coming of age or graduating from college are graduating into.  This isn't your grandpa's home market anymore and bread ain't 5 cents a loaf.

Thanks for the replies thus far :)  

@Christen G.  I was counting on my refi to pay back that money, and if it doesn't, my window cleaning and pressure washing business would have to pay it back...so basically just by working. 

Yeah I'd love to push the rents, but I'm not sure how to go about it.  I suppose I'll just give them a 60-90 day notice of my intention to raise to give them time to adjust and hopefully they will stay.  Going from 800-->975/1000 may be a hard pill for them to swallow given they will now also be paying w/s/g bills.  I am going to install new furnaces.  Their units were cold...like 60 degrees inside.  So that is improving the units.

Hey, BP!  My wife and I have closed on our first ever property, investment or otherwise.  We bought it through a hard money lender at 1%/month and 10% down.  What I am now trying to do is refinance it so I can have my first property in my young portfolio.

The facts: Tacoma, WA duplex.  All-in cost of 240k so far, with it needing no more than 6k.  Pretty turn key.  Both units currently rented for 2k total.  I am into it for right around 22k.  

Our goal is to build a rental portfolio so keeping it would be ideal, but we are young, inexperienced, and have a small but growing income.  Also, most of that 22k was borrowed privately so I need to get that back to them within the next 4-5 months.  

Given that I have a small nest egg, should we flip this property (305-315k) and gross about 35k to use to the next purchase (which we will still have a hard time financing in a refi), or keep this and make it work?  I'm calculating 150/month cash-flow after all expenses with room to raise.  The payday would be nice, but we would be in the same scenario with another purchase, only this time with our own money.  I like that this property is already rented and turn-key.  Thanks!