All Forum Posts by: Mary Kay Robinson

Welcome to the site - lots of great information is shared and there are lots of resources.  I know you will learn quite a bit just being in conversation with everyone.

Welcome Samantha.  I also encourage you to look at the local REAPS network for connecting with others investors.  It's the Real Estate Assoication of Puget Sound and there are meetings up and down the I-5 corridor and one of those is in Bellingham.  Here is the website http://www.reapsweb.com/

Welcome to Bigger Pockets!  It's a great forum for learning and discussion!

I have attached a link for the City of Bellingham Rental Checklist.  This is what the city will use for inspection.  Note that the categories for the inspection are all structural!  There is nothing in the checklist that addresses who is living in the house and what relationships they have.  It would be an invasion of privacy to ask and discriminatory to make housing decisions based on those answers.  This structure is the only thing that the city is inspecting.  To enforce an outdated and unconstitutional ordinance would force half of the York and Sehome neighborhoods to vacate - not to mention the court costs and legal battles that would ensue.

http://www.cob.org/documents/planning/housing/rentals/final-checklist.pdf

I would be curious who you talked to at the city as I would welcome a conversation with them. 

There is a lot of money from China t has been invested in BC.  The Vancouver real estate market is just crazy!  I am not familiar with the maximum cash export rule.  Usually when government tries to control behavior though, people find a way around it (prohibition is a good example).  Some Canadian investors are holding back on investments due to the exchange rate right now although there is no study to show that - just anecdotal evidence. 

The Whatcom County Association of Realtors is fortunate to have an excellent attorney as our Government Affairs director.  I am currrently President of the Association and have had long discussions with him on this very topic.  The 3 unrelated persons ordinance is an old one on the books that just has not been taken off.  It was originally enacted long ago so that who lived in neighborhoods could be controlled.  In fact, there was a request many years ago to an attorney for a suite to be filed against a gay couple with an additional resident.  The attorney wisely declined to pursue it.  Enforcement of this brings up huge constitutional issues.  How does the government say who gets to live together?

That being said - this is a very touchy subject in the York and Sehome neighborhoods as home owners there don't like a groups of college students living next door.  Students often have parties and the properties and home upkeep is less than a typical home owners.  In my view, there is no way to constitutionally enforce this rule but there is no pressing issue for the city council to delete it from the books.  

So for investment purposes - I see no legal reason that it cannot be rented out to 3 or more unrelated persons.  If you see an opportunity for investment, go for it.

All good information. As of this morning there are only 5 multi-family listings that 2-4 Units. the City of Bellingham wants more multi family units as it puts together its 20 year Comprehensive Plan due June of this year. Finding land though for all those units is the big challenge. With increasing population and tight land supply (ergo housing units) the median priced SFR in Bellingham has increase 21% in 4 years. And stats from the Runstad Center at the University of Washington currently show a .5% vacancy rate for apartments. Clearly there is a need for more rental units and housing overall.

That being said, yes Bellingham is a bit spendy for those multifamily units but the outlook for rents is strong which translates to more cashflow.  As to Mt Vernon - yes there are some deals there - have to be careful about the flood zone area.  Lenders will require flood insurance if it is needed and that can cut into your net income.  Oddly the largest employer in Mt Vernon is Boeing!  Skagit County is also seen as more business friendly than Whatcom County (our county Executive moved his company from Whatcom to Skagit County recently)  So Skagit County is definitely an attractive market there.  There are 12 multi family listings there but 9 of those listings are roughly 6 months or older - one is pushing to the 2 year mark.  So clearly there are some pricing issues with those listings.

Thank you - love the exchange of information!

As a former lender and currently a real estate broker and investor, I would be happy to chat with you about real estate investing. 

Real Estate is the single biggest creator of wealth in our country.  I have personally bought and sold many homes, did a complete remodel, built my own home and own investment duplexes.  My years as a lender have given me insights into the financing aspect of real estate which i use to help educate my clients.  With this experience, I can help people achieve their real estate goals and dreams!