All Forum Posts by: Lee K.

So, in case my spouse and I pass as we have young kids, when using trust services to manage assets, real estate primarily, is it better to do flat fee for 1.5% or a trust services company that charges by the hour with a published fee schedule? Thanks!

True, I might have to take that approach. 

Hello, BPs

I am looking for recommendations from the BP community for a CPA specializing in real estate investment properties in the Snohomish County, Washington State area. Thanks, Lee

Thanks, @Karl B., excellent advice and agree that it is about safety, not ethnicity. 

I noticed the crime map layer on the map view of Realtor.com was removed today; see the article below for rationale. While agreeing that it creates bias, can someone recommend another real estate site that includes the crime map layer as it is critical for evaluating a rental purchase, especially as an out-of-state investor? Thanks, Lee

https://therealdeal.com/2021/12/15/realtor-com-nixes-crime-map-in-effort-to-promote-fair-housing/

Hello BP friends. I need some help; I am considering purchasing a duplex where the entrance faces a road with double yellow lines. I would say the house entrance is an average distance from the sidewalk and road (see picture).

I ask as another investor and agent has told me he has a rule to never buy properties on a double yellow line as you have higher turnover, and you must discount the rent as it is so unfavorable.

1. Do you agree or have any experience with property on a double yellow line road?
   
2. In analyzing the deal, any recommendation for how much to discount the average rental rate when looking at comps?
   
3. How about turnover, do you think it will be higher even with an adjusted rental rate?

Thank you as I feel a bit lost on this one and I know someone on BP has managed a property on a double yellow. Best, Lee

Hello, Sherry. Just a quick note that I have enjoyed reading your posts and the deals you continue to bring to the forums. Way to go! The below excerpt from your profile resonated with me in its candor and alignment with helping investors build their portfolios, nicely done!

We are an investment real estate company. Where the difference is, is that we are not making our money from property management. We work hard to raise rents, decrease expenses to increase equity. Then we can pull out your equity to build your portfolio.

Hello, Kyle. I have been reviewing your posts; as a self-managing investor in WA state, they are solid gold in terms of great advice and tips; I have learned at least five property mgmt ideas/approaches from you that I have not considered before. Solid gold! Thank you for your contributions to the BP community.

Not sure, but check out Sherry Patterson in your market as she has posted a few properties. 

I can offer perspective as a WA State investor self-managing two duplexes, one in Seattle and another 1 hr. North of Seattle in Everett.

Seattle:
*Rental rates increase has slowed a bit due to a lot of folks (including recent tenants) moving out of Seattle
*Homelessness is confirmed; we have an encampment one block away that has introduced some challenges (taking water, defecating under carport, smearing defecation on the side of house, sleeping under the carport, thefts, fights in the encampment disturbing tenants, tenant confrontations)
*The housing rules are constantly changing, and with so much of the control over decisions you used to have as an owner removed, you are open to significantly more risk
*We have been fortunate with incredible tenants

Everett:
*Landlord friendly compared to Seattle
*Rental rates are getting close to the same per the previous point regarding the exodus from Seattle. Case and point, one of our 3:1 units at 1,150 sq ft with carport are renting for $2,100. In Everett, one of our 3:2 units with a single car garage at 1,300 sq ft is the same price at $2,100. 2 years ago, it was $1,650.
*Appreciation, our Everett property was 200-300K less in value than Seattle 2 years ago; now it is worth $748K vs. Seattle $830K

In conclusion, we must switch to an out-of-state investment strategy as duplex properties at current prices compared to rents are at significant negative cash flow at 20% down fixed-rate 30-year mortgage. After using BP reporting data and our research, Fort Worth is an appealing market (direct flight to Dallas, job growth, low vacancy, pricing to rent ratio, investor-friendly).

For sure I am also concerned we will have a price correction listening to Ivy Zelman (https://theglobalherald.com/ne...) and Peter Boockvar (Fed's easy money policies are overkill right now, Peter Boockvar warns), not to mention Rich Dad Poor Dad Robert Kiyosaki's recent podcast on BP.