All Forum Posts by: Kyle Wells

Quote from @Emanuel Johnson:

sorry for the typo it's 0.82 acres of land I'm looking to flip to a developer

Sent you a DM

Are you sure it's 0.08 acres? I'm assuming it must be 0.80 acres, right? Are you looking to flip to a developer or to partner with one?

Quote from @Mragank Yadav:

Quote from @Kyle Wells:

Is cash flow the most important factor for you? Personally, I started on a similar path to you and starting investing in an out of state market while I spent a couple years there for work (Kansas City) and totally regret focusing my resources there. There has been solid appreciation, but nothing compared to the Seattle area. Cash flow can quickly be wiped out if you have tenant turnover or unexpected repairs. On paper it may look good, but I would be curious to know what the appreciation on a median home has been over the past 10 years. 

 @Kyle Wells Thanks for sharing your experience. Where do you invest primarily in Washington? I am happy to look around Washington but wasn't sure if the numbers work. Cashflow isn't super important to me but definitely won't like to go negative. 

I invest in North Snohomish County (Marysville/Lake Stevens/Arlington). Cash flow is tight in the early years, but in 3-5 years you'll cashflow well and see some nice equity growth. 

Hi Matt, 

I'm wondering if the best route for you to go is to become a full-time investor. It seems like you're very analytical and that is your passion. Why not scale what you're already doing? You could keep the right deals as rentals and flip the rest for income.

As an investor, you can control the process from A-Z and just worry about meeting your own goals. As a realtor or GC, you're going to have to be on other people's schedules, which means evenings and weekends much of the time. It will burn you out unless you build out a team and focus on managing the business and people. This takes time to build a machine that lead generates enough business to support a team. It's a lot of work and not for the faint hearted. Both are very competitive industries to be in as well. 

Welcome to the community! If you are a responsible spender, the first thing I would do is open a credit card and get that line as high as possible. Then put all of your normal purchases on there without exceeding roughly 30% of your line limit. Set up autopayments from your checking account to your credit card for the statement balance amount so you never pay interest. That will help you to start building credit. You will also earn credit card rewards in the meanwhile. Nerdwallet has great info on the top reward credit cards. 

Continue living with your parents until you have roughly 7-10% of the purchase price of a duplex you can afford in your area. That will fund your 3.5% FHA down payment, 1.5-2% in closing costs (unless you can negotiate those from seller) and some reserves for repairs. Then purchase a duplex. Live in one side and rent out additional rooms. Then rent out the other side either by room or as a unit. This should keep your living expenses very minimal so you can continue to keep saving. When you reach 80% loan to value (LTV), refinance into a conventional loan to remove PMI and make you FHA eligible again. Then repeat the process but next time with a fourplex. Then you can continue to stack fourplexes to take advantage of low down payment program or you can start scaling up to small apartment buildings and so on. If I could go back in time before I had kids, I would absolutely do this. You are so fortunate to be starting at a young age!

If you need a great agent in the Boise area let me know! I know a great one out there.

Hi Lucy, congrats on taking the big leap! Hardest part is getting your 1st deal done. 

I am a local investor and realtor in the area. I would love to connect and see how I can help you!

Is cash flow the most important factor for you? Personally, I started on a similar path to you and starting investing in an out of state market while I spent a couple years there for work (Kansas City) and totally regret focusing my resources there. There has been solid appreciation, but nothing compared to the Seattle area. Cash flow can quickly be wiped out if you have tenant turnover or unexpected repairs. On paper it may look good, but I would be curious to know what the appreciation on a median home has been over the past 10 years. 

Quote from @Pankaj Singh Negi:

How is the Lake Stevens area as a Rental Investments?  I received mixed opinions. like area is expensive with lower returns and properties are also not appreciating whereas some people said its comparative better than south like Auburn, Puyallup with better schooling and lower crime rate.
Could you please share your advice.

Hi Pankaj, I'm pulling some median price point stats directly from the MLS for each of those cities over the past 10 years:

Lake Stevens - 
2013 - $229k
2023 - $745k
Growth - $516k (225%)

Auburn - 
2013 - $219k
2023 - $575k
Growth - $356k (163%)

Puyallup - 
2013 - $195k
2023 - $527k
Growth - $332k (170%)

Past results aren't always predictive of the future, but I would say Lake Stevens is the better investment option if you can afford to enter that market. I would look up local police departments for crime rate and greatschools.org for school ratings. 

Let's connect and see how I can help you reach your goals!

Quote from @Jacob Sweeney:

New to the group. I live just outside of DC, looking to make the move to Seattle in January of '24. I hope to be able to by a place for us to move into, preferably a duplex or larger to get started investing. If you are in the Seattle area, say hi. I don't have any experience, but am very motivated. 

Hi Jacob, fellow investor and realtor in the Seattle area. Would love to connect and help answer any questions you might have. 

Quote from @Rajesh Kasturi:

Thanks a lot Kyle Wells I will try them. Really appreciate your response. 

You're welcome and best of luck!