All Forum Posts by: Ken Lim

Hi Everyone,

Thank you for all your input. I just got the building home inspection. Alot of older wiring, one ceiling fan terminates in the attic. Deck has some rot, low railing. Attic space right under the roof looks really black like possibly some previous water damage, aka mold? Building inspector couldn't crawl through the whole space there wasn't a sufficient catwalk. Current tennant on downstairs garage have alot of stuff in there, couldn't get to the small side room also no firewall. Eh I think I might be trying to get something where numbers don't work that is a little more run down just because it is next to me. To get this place up to snuff having a contractor do all the work probably around $70K . I'm talking new wiring possibly, for sure new outside main panel shutoff and new panels in each unit. Possibly redoing the full downstairs and the shower it had tile but was against a weak background it was cracking. Also possibly a new roof, and upper insulation in attic. For sure if each tennant left there would need to be a full rehab of each unit. One wall is totally rotting from water behind the laundry. I don't know maybe I'm too picky but on my current duplexes I really brought them up to snuff spent $50K+ on both total, most of that was outside work. French Drains etc.

Hmm I don't know I'm getting cold feet. We will have roofer come out, and we are still waiting on expense report from property management company. I don't know why it is taking her so long to get it out to me. 

Hi right next door to my current two duplexes a triplex has opened up. Property is in Chehalis WA not Tacoma. $665K Asking I put in and offer for $650K that was accepted. I put $6500 in earnest down this past Friday, and I also did home inspection of Friday. Rent will be raised to $900, $900, $800 in Oct of this year. Market rate for these should be $1200, $1200, $1000. Current 6 month contract, property management company is doing it 8%. My loan is 30 year , 25% down, on $650K, Note rate 6.625%, APR 6.717%. Home inspection the bones of the property is good. But there is things that need work, bath room fan replace, several baseboard heaters not turning on. Wall behind one of the laundry machines is soft, I can tell water damage. 2 tennants been in since 2019 no messy but not the cleanest, 1 tennant been in since 2016 ok. Cabinets old. One has a dog. No smoking. Roof is ok, one electrical panel needs replaced, all outside main switches need replaced. Deck stairs need a little work. It has two closed garages. There is room to expand the lower underneath unit, buy incorporating storage room in garage. maybe making two one bedroom short term rentals on bottom but would require full rehab and telling other tenants to take out there stuff from storage which at this point would be hard. Clearly this doesn't meet cash flow, Cash on Cash return or anything I believe. I'm just looking at it because it is right next to my other Duplexes which by the way on unit is my primary residence, and place I'm going to live in forever pretty much. I can pay it off in 15 years most likely.

I can slowly raise rent every 6 months until they get to market rate in 18 months, and then I will have to shell out money initially to make it work.

Should I do this? 

Thanks,

Ken