All Forum Posts by: Karen Wirkala

Thanks for passing that on!

I have a single family house in Seattle that I'm renting out for the first time after the FIT law went into effect. I'm not clear on the details of it. I was flooded with requests for viewings as soon as I posted the house and will be showing it this weekend. Some people pre-applied by sending in those automatic Zillow applications that can be used for multiple properties. If those people are qualified and want the house do they count as being first even if someone else submits an application after the showings this weekend? Some people heard about the house on Craigslist and contacted me asking for an application before I put it on Zillow. But because I didn't send them the application right away then are they behind the folks who sent in the automatic Zillow application? Don't want to get in trouble on this and I think I will have multiple qualified potential tenants submitting applications just minutes apart in some cases. Thanks in advance!

Thanks, @Dave Foster!  Yes, I realized my question really is about appreciation vs cash flow.  I think I'm gun shy because of a condo I owned just outside Seattle a few years ago and sold at a meager profit - it's now worth well over double and of course I'm kicking myself :)  But good point about the wage increases.  Hard to see an end in sight in Seattle right now but I know nothing lasts forever.  

Thanks for all the responses and advice! I'm not sure how to reply to each comment separately so I'm putting it all here. To answer some questions:

-Yes, I have a great renter. We had it available short-term early on and were charging much more but then moved to long-term rental at this price. I had a newborn at the time and the short-term thing was too time consuming but now I could go back to that. We’ve never had a vacancy and always have many applicants. I manage it myself.

-What is my WHY is a great question I’ve been thinking about a lot and not sure I’ve come up with a succinct answer yet. But basically, I want to create a job for myself for when my kids are in school and don’t need me so much. Not interested in going back to an office job. Also, I’ve loved being a landlord these 3 short years and find all things real estate very interesting. Working on reading as much as I can now. And of course, additional income for my family is great.

I will work on identifying the types of properties and areas in which I could purchase a more productive asset with proceeds from a sale or equity. I have a lot of narrowing down to do! If something very tempting comes along I may choose to sell. Great point about the taxes, Nghi Le!

So interesting to hear everyone’s opinions which are often wildly different!

Hey folks,

Total newbie here. I am an accidental landlord wishing to be an intentional one. I own a SFH in an upper middle-class area of NE Seattle. It used to be my family's primary home but after having kids we moved out of it and became renters ourselves (for a larger, more kid-friendly layout) and we rented out the house. We didn't want to sell until we purchased another home of our own thinking we could always remodel that house and move back into it. We recently were able to buy another home nearby for our family to live in. Now that we are settled and happy in the new house we are feeling ok about selling the original house – though still somewhat emotionally attached. My question to you is, should I keep that house as a rental or sell it and buy another property (or two) elsewhere? Or keep it and buy other properties using a HELOC on the house? Here are the details:

House purchased in 2009 for $465K

3 bed, 2 bath, 1400 sf (not counting unfinished basement & garage)

Built 1927, needs some major updating like electrical, plumbing, windows, kitchen re-do, etc

Current value according to BPO last year 815K, according to Zillow now 945K

Currently renting for 2900/mo, tenant pays all bills

Outstanding mortgage 332K, monthly payment 2060K

I realize it doesn’t even come close to the 1% rule but it is cash flowing nicely and value has skyrocketed recently. It’s in a highly desirable area for families (good schools) but also close to businesses, transport, a major university, and walking distance to high end shops, restaurants, etc. I’m tempted to remodel and increase rent but also considering selling and looking for cheaper properties outside the city. However, I don’t know where to start looking and the prospect of landlording from afar is a bit daunting. I also think this house will probably keep appreciating so that’s an argument for keeping it (that might be the emotional attachment talking though). I’ve enjoyed managing this house for the past 3 years. It’s given me very little trouble and I’ve had great renters so far but I know that’s not the typical landlord experience. Still, I would like to buy more properties to buy and hold and manage myself (I’m a SAHM). Just not sure what direction to go in at the moment. Would love to hear from people familiar with the Seattle market but any advice/insight is appreciated.

Thanks!

Karen