All Forum Posts by: Kai Van Leuven

It is just like every other interaction with people. If you feel like they are taking advantage of you JUST SAY SO! I also don’t think that being rigid with people works as well. Usually I am compassionate with people but make the comment “I am sorry to hear that _______ happened. I want to be helpful but I have to treat this like a business.” Then I tell them if it’s going to be late I need to charge a late fee. If I want them out I will tell them the same thing and say “I am sure you will pay me when you say but there are things that I have to do to protect my business”. Then I give them a 3 day. If it’s 1 day late I let it slide. If they tell me in advance (a week), I will work with them. If it’s the 1st of the month and they have an excuse I am pretty firm.

If you neeed it then buy it. I look for deals on material but have a rule to not store any at my house. Home Depot is my warehouse. 250 looks like a good deal for one that is new.

I really like Snohomish County along I-5 but so does every other investor... It is a really competitive time. Skagit County is really pleasant to work with as opposed to Snohomish County for permitting. The jobs are higher paying in Snohomish Co so I feel like there is a larger tenant pool to go off of. I always felt like if I could buy a “one off” apartment complex in Skagit and make it nice than it would be a good fit. There are really trade offs to both. If I were going to develope I would do Skagit. If it is just turning a small house than I would stay in Snohomish County. It also has to do with where I live and travel time.

@Amy Jo Holweger It really just depends on the area. I remember when I would have thought that was an outrageous price but rents and appreciation have been going up so much North of Seattle that it seems like it could be a good deal. If its in Everett than there is really just a handful of neighborhoods that could qualify "A" status. I have bought in Everett. There can be some really good values but you have to really do your research. In Snohomish, Lake Stevens, and really anywhere further south the prices for rent and values go way up. If you have any questions PM me and I could try and help you out.

@Matthew Kimball, I looked at this place yesterday. On paper I think it looks really attractive with a good CAP rate. I know that area really well for MF and don't think it is a good area. It is surrounded by a bunch of other apartment complexes.

**I could be jaded because I own an apartment up there and have had some terrible tenants

@Eli Molloy I talked to an insurance guy and a surveyor. The surveyor really didn't know how it would effect my premiums but said that it might help. He quoted $1300 combined for both buildings. Then I called an insurance guy that he recommended. The agent said that a elevation cert would not help me and recommended Lloyds of London. I went ahead with their policy because it saved me about $2,400 per year

@David S. I think that @Tom Bertz showed how it works. It seems like if you hang into it for the full term a SWAP can be a great product. The other nice thing about it is that my loan is transferable and assumable. I don't know if that applies to all SWAP's. If I sell the property I may try to keep it.

To answer your questions;

I am getting it through a local bank. I am paying a 1% origination fee and all the other standard stuff. They are not doing a new appraisal because I bought it a year ago and there was an "as complete" appraisal conducted. As far as LTV and all that stuff I would rather not post publicly but if you want to send me a PM I would gladly answer any questions.

I would try to stretch out the closing to get the property 100% full. Put it in your feasibility period. It will also help you to know if the current owner has over renovated the property for the area. I don’t know anything about CAP rates over there but the property seems pretty turn key. 7% where I am at is good but I have no clue in SC.

I would be open to meeting up in the Puget Sound. I would be for a Snohomish/King county border place.

I have been on both ends of the spectrum. We have very nice rentals but we bought a slum mid last year. Those tenants were terrible. To deal with all the “issues” was not worth it. I think back on negotiating with murderers, meth dealers, wife beaters and folks on house arrest... I think I will stick to nicer places!!!