All Forum Posts by: Karl Krauskopf

@Ben Slayen would you mind sharing details?  I lived in WPB for a while, grew up in FL, and looking to invest in that area.  Seattle, WA has become too expensive for me at the moment.  

@Natalie Novak we are looking on the south end of Lake WA down to Tacoma, and north of Lynwood to Marysville.  We live in Shoreline so both are relatively easy driving.  We'll also likely use a property management which reduces the need to be nearby.  As such, we're expanding our search range to include more of Pierce county, Spokane (though this is very new concept I've been playing with), and out-of-state where we grew up in Central and South Florida.

I just read a great report from FannieMae on Multi Family investing in Austin, TX.  You should search for it and give it a read (15 min max).

@Nghi Le absolutely man, would love to.  I live up in Shoreline so not far from downtown.  PM me and let's connect!

As a fellow Seattle-ite, I certainly feel your pain! I've been looking into Pierce and Snohomish counties for small MFR and SFR for cash flow deals.

Besides what you mentioned for looking into AZ, what made you choose the Tucson market?  I've been looking into Florida and have experience living in West Palm Beach but looking to determine what the best market is.  

It certainly feels giant, but just under 10k sq ft so likely won't meet that threshold, but certainly something we thought about.  Though, access to subdivided property would be challenging.

@Julian Sibley You're exactly right, we're looking primarily in/around Everett and Tacoma.  Your insights for Everett are highly valued - thank you!  Do you own and rent, and if so, do you use property management?  I'd love it if you would share any preferred PM and contractors you have that are local.  I'm currently pursuing a loan with Umpqua as I use them on our primary residence but unsure how long I will stick with them.

My thought process is to initially acquire a 2-4 unit MFR, through a HELOC that I will have secured within 1 month, and BRRR it with positive cashflow on the back end. Ideally with the cash-out refi from that property, we'd use it to a) acquire another property and b) pay down the HELOC. Again, I'd prefer to continue investing locally but have experience in West Palm Beach, FL and Dallas, TX, both of which are significantly more affordable for entry.

Plan is to keep our current home as long as possible.  Like your brother, we've seen great appreciation and only see it increasing.  Depending on the MFRs that I hope to acquire, we may house hack those and rent our Shoreline home, but that's all dependent.

@Brandon Wilson Greetings from Shoreline, Brandon!  I love the sound of your strategy as it mimics ours almost identically! We're struggling to see how deals can be made in our area (though all properties have a homerun price, right?) when properties go for 25%+ over asking price. 

My wife and I grew up in South Florida and spent a few years in Dallas, TX both of which are significantly cheaper to purchase but figuring out the rent to own ratio as well as rent pricing is where I'm getting hung up.  As you stated, I'll take a good deal where I can find one.

How often are you in/around the city? 

Greetings from the beloved Pacific Northwest in Seattle, WA where the market is red-hot, prices are high and climbing, and its still a great time to buy - that is if you can afford it.

My wife and I grew up on the sunny beaches of South Florida where we both got our masters in West Palm Beach, FL.  After graduating with my MBA, I took a job in Frisco, TX (suburb of Dallas).  We quickly realized that we wanted to own and could afford a home so we ended up purchasing a great deal that required ~$15k of renovations.  After ~3.5 years we sold for a great profit (great deal + reno + appreciation) and moved to Seattle for the love of the outdoors.

Our home, just north of downtown in city of Shoreline, has seen extraordinary appreciation in less than 1 year. It's been ~2 weeks since I've been listening to BP podcasts and the beginners guide and strongly feel that this is a great future. We're aiming to begin our journey through single or multifamily rentals utilizing the BRRR Strategy and targeting to accomplish 1 in the next few months. I've worked in the corporate world since I graduated from undergrad and have felt the sting of burnout. My long-term goal is to replace our income over the next several years and invest full time.  My short-term goal is to close on at least 2 successful deals this calendar year.

Areas of familiarity include finances, modeling, creative partnership agreements, negotiation, etc.

Areas I'm seeking guidance include market identification and analysis, pricing and cost basing, and scaling techniques 

@Sean Harris similar situation as yourself, let me walk you through my logic and see how we might "sharpen" each other:

I own in Seattle, WA where after less than a year appreciation has taken the value sky-high, plus we've made a TON of renovations. We don't want to move out or rent this home because we love the property and area...so, we're going forward with a HELOC to purchase either a SFR or MFR (sidenote, looking in SE Florida and Seattle area, though the latter has purchase prices that are challenging to justify in our position).

I am hoping for $125k of a HELOC meaning the top end of my SFR purchase is $600k (20% down) or MFR at $500k (25% down). This means my ARV should cap for SFR at $780k or MFR at $650k. However, that doesn't yet contemplate closing, renovation, refi, or hold costs which would all be reduced from the top purchase price for each niche.

What I'm looking for feedback on is how to pay off that HELOC, is it with the cash-out refi from the second purchase and hope there is some left over for another property's down payment? OR do I just draw from my HELOC again for that second purchase and repeat.

Shout-out north of the city in Shoreline!  I'm starting to dip my toes but feel I'd rather just jump on in.  I'm primarily interesting in getting into the small multifamily properties from Pierce to Snohomish counties.

@ruth 

@Ruth Bayang I was looking at that but wasn't sure the applicability for newbie investors.