All Forum Posts by: Justin L.

I’m sorry but that’s funny. It’s amazing/horrible what the government is letting these people get away with. I just had to sell a duplex in west central because the tenant didn’t pay since March of last year. And she trashed the place. I’m out 16k and no help what so ever. Thanks to the market I did good on the sell but that was never my intent and it’s completely disheartening as an investor. My advice to you, if it’s a rough area, take the opportunity to cash out and move that money to a  an area with a a better tenant pool. If that’s not an option just tell them you need a police report to back that story up. 

I think Spokane has been a hidden gem for a long time. Now with people fleeing the west coast cities (hopefully leaving their politics there) and Covid allowing more people to be remote, Spokane and Boise are seeing their property values catch up to what I think is more realistic. It's unfortunate because those low prices were amazing, especially for investors. I think there will be some sort of a correction but I don't think it will be a fall, more of a flat line here in Spokane. My thought is don't buy just to buy, but don't wait either. Be diligent in looking and something will come along. Owner occupied gives you an advantage over most buyers.

I spent way too much time reading this 

Hey BP. Does anyone in the Spokane, WA area have recommendations for drywall contractors? Looking to get a project started and they are a hard trade find! Thanks in advance!

@Jeff Wittig Thanks! It's 7 blocks north of Kendall. I have a hard time considering it a selling point but everyone in the area does. Each is a 3 -1. They are 850 now. I've had it for two years and the rents have gone up about 30% since I bought it.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Spokane.

Purchase price: $83,500
Cash invested: $29,500

This is my first investment. It's located in a less desirable area but close to a popular up and coming part of town. It's a 1898 built converted duplex I bought right off the MLS. The key/challenge to keeping this investment doing well has been finding good tenants that want to live in this area.

What made you interested in investing in this type of deal?

I've always been attracted to multi-family. It was pretty cheap and didn't need much work to get it rent ready.

How did you find this deal and how did you negotiate it?

On MLS. There wasn't much room for negotiation. Someone else had it under contract the first day and my realtor was able to get us first in line if something fell through. Luckily it did!

How did you finance this deal?

Conventional loan at 4.9%, 25% down. I would like to cash out refi, but the rates have gone up so much it's hard to justify it.

How did you add value to the deal?

I spruced it up and fixed basic things that would make it more appealing to more renters. The best value add was to include washer and dryers with the units. They already had hook ups in both units. I think that in this price range renters don't usually own them and it is an easy and cheap amenity to add. I was under $350 for both sets I got used on Craigslist. Luckily I haven't had a single problem with them.

What was the outcome?

A great cash flowing investment and a ton a experience!

Lessons learned? Challenges?

I learned a lot about the buying process, minor rehabbing process, advertising process, leasing process, dealing with contractors, dealing with tenants, book keeping and tax advantages. I made relationships with realtors, brokers and other investors throughout the process.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with a few great people. They just aren't on BP yet.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Spokane.

Purchase price: $83,500
Cash invested: $29,500

This is my first investment. It's located in a less desirable area but close to a popular up and coming part of town. It's a 1898 built converted duplex I bought right off the MLS. The key/challenge to keeping this investment doing well has been finding good tenants that want to live in this area.

Currently I self manage, as I wanted to learn everything I could about REI. In the future I will probably off load this property via 1031 or at the least turn it over to property management. Over two years later and I'm really happy with the investment as a whole. Taking care of any maintenance and managing it myself has allowed me to squeeze a lot of cash flow out of it.

What made you interested in investing in this type of deal?

I've always been attracted to multi-family. It was pretty cheap and didn't need much work to get it rent ready.

How did you find this deal and how did you negotiate it?

On MLS. There wasn't much room for negotiation. Someone else had it under contract the first day and my realtor was able to get us first in line if something fell through. Luckily it did!

How did you finance this deal?

Conventional loan at 4.9%. I would like to cash out refi, but the rates have gone up so much it's hard to justify it.

How did you add value to the deal?

I spruced it up and fixed basic things that would make it more appealing to more renters. The best value add was to include washer and dryers with the units. They already had hook up in both units. I think that in this price range renters don't usually own them and it is an easy and cheap amenity to add. I was under $350 for both sets I got used on Craigslist. Luckily I haven't had a single problem with them.

What was the outcome?

A great cash flowing investment and a ton a experience!

Lessons learned? Challenges?

I learned a lot about the buying process, minor rehabbing process, advertising process, leasing process, dealing with contractors, dealing with tenants, book keeping and tax advantages. I made relationships with realtors, brokers and other investors.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with a few great people. They just aren't on BP yet.

Hi Patrick. Do you have them fill out the cozy application as well? I use Cozy but I don't like that I can't pick what I want on the application and it's hard to tell what areas of it they are leaving blank. I think I need to switch over to paper applications.

Thanks

Justin

Congrats on the purchase!