All Forum Posts by: Account Closed

My question is primarily directed toward those who are familiar with or who invest in the south Sound area around JBLM. I'm looking to buy my first buy and hold rental, but only have $15k to get started.

I've noticed that most of the affordable (read: cheap) property south of Seattle is in and around Tacoma. It seems like investing in Tacoma can be risky from a quality of neighborhood perspective, but I'm unfamiliar with the Tacoma/Lakewood border area. I found a FSBO SFR that seems like a decent deal and am looking for feedback.

The property is 1000 sq ft, 3 bed 1 bath asking $138k. Rents in the area for that size home look like they are $11-1300/mo. So, a couple of questions I have are: Does this look like something worth pursuing? What should I be aware of regarding that area, and more specifically the effect that a military base has on the local rental market? Which south Sound area have you found to be a better area for a rental?

Thanks BP!

Kevin

I'm not seeing why a guy would pay all cash for any rental.  I cant see why an investor would buy one investment property for $100K, when he could leverage them and buy 4 properties for a 25K down payment each?  at least if one goes empty, or needs some repair you still have the others that are performing well.  I agree with @Sarah Cunningham.  buy a little cheaper houses and don't fill the basket too full of eggs.  In the long run it will yield better return on less outlay. 

The other thing I see is the house obviously doesn't meet the 1% rule.  I never look at a listing twice if it won't rent for 1% of the initial cost MINIMUM.  including closing costs.  this is more important in multifamily dwellings as most appraisal's use at least a percentage of the propertie's ability to produce income to establish the propertie's value.

RR

I had a long talk with my father back on my 30th B-day.....

It was about finally understanding what the hell he had been telling me all of those years, the stuff i never listened to! :lol:

I have come to realize that I actually get a little dumber every year.........At 18 I thought I new it all, and every year that passes, I realize more and more of the things I don't know! LOL

The moral to the story, sometimes dumber is smarter! :mrgreen:

My advice is to buy decent used car, most successful people will give 2 craps about what you drive, they will only care if you are someone who will hustle and MAKE BUSINESS HAPPEN!

Take all of that money you are thinking about spending and invest it in real estate....

If you do that, you might be paying cash for your dream car in the future!

Hi everyone:)

I wanted to get your input on a property - it's a Duplex in north Kelso. It's a foreclosure property, being sold by Fannie Mae, for $156,000...its on a private lane, that's off a dead end-road. My agent said both units would rent for $900, but I'm calculating $800/month to be safe. It's a townhouse style duplex, with each unit being 1030 sqr ft, 2 beds, 1.5 baths, vaulted ceilings, small fenced yards, big 1-car garages, and fireplaces. It looks like the bank put in new floors, paint, fixtures, and appliances (those all look new, anyways). The mortgage (w/PITI and PMI) will be just under $1100, so that's $500 a month income (if both units brought in $800), then I'm setting aside $200 a month for repairs/capital expenses, and $160 for vacancies. So the cash flow would be $140(which isn't great). However, there's a good chance I could get $850 a unit, plus in a few years, I will refinance it, and drop the PMI, which would reduce my mortgage payments by $170. It's not in a flood zone, and I have inspection and financing contingencies in place. This would be our first property, and I want to get everyone else's input: do the numbers sound like a decent deal? Also, am I missing anything?

Any input, advice, or thoughts are VERY appreciated!

Thanks so much!

-Drew 

Personally,  I don't know how people get along without a truck, especially if you own and renovate property. Now, do you need a fancy new truck, that's up to you. But an older, well-maintained truck covered by minimum insurance will offer you the affordibility and flexibility you need, when you need it. I drive a 11 year old Toyota Tundra I picked-up for next to nothing during the 2008 gas crisis when everyone was dumping low MPG trucks. Over the years, I've added plenty of scratches and dings during remodel projects. And now whenever I notice them, they remind me of projects completed and the hard work I put in to reach my goals. I'm proud of each and every one of them! My prediction- you may soon find yourself driving the truck more often than your car!

I've been searching the MLS for a couple months now looking for my first rental investment in Western Washington, but so far haven't found anything close to the suggested 2% rent to purchase price rule.

Does anyone have suggestions on which areas fit the mark? If not, then what percentages are other REI's typically realizing when purchasing SFR and/or 2-4 unit properties in King, Snohomish, Pierce counties.

Thanks in advance for any/all feedback.

I came across a contractor who had two different sets of prices/bids; one that he calls his regular price, and one that he calls a tax/cash deal.  The tax deal is always a great deal, but I wonder if I could get in trouble for this?

We still sign a contract, he would provide a receipt for all the disbursements, and he says his license, bond, and insurance will still take effect for the project.  I also still plan on recording all of my expenses in QuickBooks and give it to my CPA at the end of the year regardless.

I haven't heard of anyone being hit with this in King County, but I know it has been heavily enforced in Kitsap County for a while. It may be just a matter of time. I'm also interested in how much the license, bond, and insurance will cost, and where can I get it done without much headaches.