All Forum Posts by: Nate Smoyer

Hey Bellingham rental owners and property managers, 

I'm helping a friend get their place ready to rent. They are considering allowing pets but aren't sure what's the right combo of pet deposit / fee / monthly rent charge.

The house is a 4/2 and is very close to downtown. My suggestion was a $300 upfront fee and $30/month.

Does that sound fair? Should my friend also pad the security deposit with an additional pet deposit?

Thanks!

First deal I spent $250,000. Bought a 4/2. It rents for $1800. I also rent out the shop/garage on the property for $500. Tenants pay all utilities.

To increase my cash flow, I refi'd my FHA loan, rolling the costs back into the loan. I also negotiated the lender pay my first year of PMI (at $38/m vs $155/m w/ FHA). I also reduced my interest rate from over 4% down to 3.62%.

Yes, bad deal always = bad deal. The chart I shared with you was showing you how the market is buying right now in relation to list prices. As I mentioned, you'll need to pursue deals OFF market. If you are asking a realtor to right offers at 40-60% off the list price, you will be wasting a realtor's time since the market is not selling at discount rates that low. It has nothing to do with the realtor--it has everything to do with there are very few bone heads who will sell at 40-60% of their property value in this market. 

Mind sharing your investment formulas? Are these custom or are they the same that many others here on BP use?

I say investor friendly because I do understand the challenges in making a deal work. I have great respect for those who put in the time and effort to get real estate to work for them--it's one of the primary reasons I left my career in digital marketing for real estate. 

If the only realtors you meet tell you to spend more, then one of two things is happening. 
1) They're telling you your offers are not realistic. (How many deals have you won with your strategy?)

2) Find new realtors to work with. I view my business as an opportunity to serve the needs of others--which would include writing offers on the properties you intend to purchase.

Let me know if you have other specifics you'd like me to share regarding the market. 

All the best!

Hey @Greg Alway, welcome to BiggerPockets!

I'm an investor-friendly realtor from Bellingham. I thought I'd share with you a little data that may help inform your investment strategy. 

I don't want to discourage you at all, however, you may find it difficult for a realtor to want to write offers so low when the market is not supporting such deep discounts. See here how close to list price multi-family units are selling for in Tacoma.  http://nwmls.stats.showingtime.com/infoserv/s-v1/T... with this strategy, you're guaranteed to be asking a realtor to be writing A LOT of offers with low chances of success.

I'd be happy to share with you more data straight from the MLS if you'd like. Just shoot me a message. All the best!

HA--I drove past this yesterday with my in-laws. I was thinking of going back to door knock that stretch of homes. It's beautiful out there during sunset!

@Fallon Richardson - you're not wrong about the strong seller's market, but seller's are willing to negotiate. You may consider sourcing an off-market deal with an out-of-town owner. I'm finding they are more flexible and willing to work.

@Blake King - of course everyone learns different, but I did the online course through Rockwell. I liked it because I was able to move at my pace (faster than a classroom setting) and didn't have to commit to going somewhere to learn. 

@Viktor R. you should hear from my associate Gail soon.

Hey @David Lopez--welcome to BP!

Sounds like you've got some great examples around you to help influence how you invest. If you can become a software engineer, then real estate ought to be a cake walk for ya. 

All the best!

Hey @Carlton Sellars, can you email me more details? [email protected]

THANK YOU @Marcia Maynard for that form!

Additional thanks to @Nicholas Covington @Colleen F..