All Forum Posts by: Account Closed

@Pete M. I've always found it very easy to landlord in WA State.  Seattle has some goofy twists to doing business there but WA State is very Pro-Landlord, especially Snohomish County.  

HI Rosa Le,

I read and re-read your post.  $475.00 for an annual policy is a bit low, but for a 1br 1bath unit it might be par for the course.

You don't mention if you've formed an LLC or not, so I will presume you are looking to cover yourself personally against any liability as a landlord. I think you're coverage is adequate, and if anything you've covered more bases than you'd likely need.

If you're a high net worth individual you could consider a blanket liability policy of $1m to $2m and that will protect you from most issues should you have a tenant that goes after you personally.

WA State is very user friendly to landlords.  As Issaquah is a great community and you're likely dealing with an individual renter or couple, you should feel adequately covered for any issues that might arise.  

We recently had a similar issue at a vacation rental we remodeled.

There was a wafting sewer smell that couldn't be anything other than "hint of poop."  Yuck.

After calling a plumber, he discovered the washing machine drain (recently added) didn't have a P Trap.

If you can access the crawlspace make sure all your drains have a P Trap and they are full of water.  Otherwise sewer gas can creep up and get into the house.  

If the tenant is looking to get out of his lease, you should encourage him to go.  Get a new tenant and say bye to the headache!

Hi Alyssa,

I'm a landlord and handyman and we don't scope our sewer lines unless there's an issue, but we do "Snake" and jet the clean outs every other year as part of fall maintenance.

If the City records show a permit was issued, perhaps the old clay pipe was replaced with new PVC (which would be great!) or perhaps they added a clean out (this is a close to ground level access point that allows you to snake or scope the sewer line easily).

With an older home budgeting for a snake and scope is good prevention.  If your sewer line has old clay pipes you might find roots creeping in at some of the joints, so a camera scope would see this and  hydrojetting the line would clean the roots out.  

If you'd like the piece of mind knowing your sewer line condition it's money well spent.  Save your receipt and report the cost of the service on your 1040 Schedule E under line 7, cleaning and maintenance.  

If an issue pops up or there are any concerns you'll have the best, most current information.  

Hi Becca,

If you don't mind a question : What was the driver to purchase the Indy SFR's that are cash flow negative? Too good to pass up?

If you can ride it out for 5 years (60 months at $200 month negative cash flow x 2 properties = $24k cost to hold on!) you'll increase rents and an opportunity to refi at a lower rate. Is it worth spending the extra $24k to you to keep these in your portfolio for 5 years?

The only reason I'd suggest holding on a bit longer with your Indy SFR's is you already paid the transaction costs to get into those deals. You'd have to pay those transaction costs again when you sell, plus hopefully incur some capital gains (profits!). If you can let your appreciation tree grow a bit your returns will be better should you choose to sell down the road.

If you can rework the numbers (raise rent a little each year) and get to net positive, the appreciation will come.  Getting the debt service covered is vital each month.  

Working a W2 position, investing in Real Estate and being a mom is lot!  I respect the pressure you're putting on yourself, but take a step back and look at what you've managed to accomplish.  You have a real estate portfolio that will allow you make some great choices for you, your family and kids future.

It sounds like your plan to have your SF area SFR cash flow at $2k per month is the biggest bucks for the bang (of the hammer). If you put that plan into effect will the cash flow off set your Indy properties monthly loss until rates drop a bit or you're able to raise rents?

I don't envy having family as tenants. That makes each decision more difficult and tends to change your lens from RE investor to "giving my family a good deal." While noble, it allows you to not fully maximize your returns of your REI portfolio.

What you've achieved is amazing, so drink that in.

Hector,

Keep your head up and you'll find the right deal for you.

Once you make your purchase, you'll be learning even more.  

One area that always seems to be an issue in older homes is the water supply lines.  Older galvanized water pipe deteriorates from the inside out.  If you remove the screens from any interior faucets (kitchen/baths) and find some rusty sediment on a property with town water, you're looking at having to replace the supply line from the street into the home.  

It's easily fixed but an expense much like any other roof, foundation, old knob and tube electrical or root filled old sewer line.  Eventually you'll find these challenges are really opportunities to ask for credits at closing or price adjustments.

You've already made some excellent financial choices so I'm sure you'll have success in REI. Don't let issues and speed bumps get you disheartened or dissuaded. The big gains come over time after lots of headaches, heartaches and hiccups.

Also, living near Lowe's helps.  :)