All Forum Posts by: Nghi Le

@J Scott 

I definitely agree with you that it's a stupid law. I think the state saw how much money investors are making and wanted a bigger piece of the pie. 

But hiring a GC isn't enough. Has to be one on title. I'm not sure if being a part of the LLC works...

 I think the 12 months apply from acquisition to sale. So as long as they've lived in the home for at least 12 months, that should be fine. 

Ahhh, my mistake. I tend to do more skimming than reading during the late hours of the night, and my head isn't always thinking straight at that time either :-) 

Just be sure that it doesn't "look" like they're owner occupied either, for example if the tax mailing address matches the property address. Lawyers will always try to find ways.

I haven't heard of anyone being hit with this in King County, but I know it has been heavily enforced in Kitsap County for a while. It may be just a matter of time. I'm also interested in how much the license, bond, and insurance will cost, and where can I get it done without much headaches. 

Wow, so many great responses!  I'm getting the impression that the knob and tube wiring is a bigger problem than the roof?  Either way, my contractor is having an electrician come out today to check it out, and my contractor will also be checking out the roof because he still believes it only had 1 layer before.  The other contractors I had bidding on the house also saw 1 layer.

How much of a problem is the roof?  I feel like it would be a bigger issue on a larger home, but mine is a 1-story 880 sqft home.  Here is the listing:

https://www.redfin.com/WA/Seattle/242-SW-122nd-St-...

I had 4-5 contractors bid on this house, and I ultimately went with mine due to the fact that they were recommended from two other investors I know; they're licensed, bonded, and insured; and they're a big company with a lot of experience (currently doing 22 deals at the moment).  They were also accommodating my budget. I was on a strict budget because this is my parents' house and they still owed a lot of money on the property; I'm just trying to break even with this house and get my money back to do the next deal.

I'll provide an update once I hear back from my contractor.  I also have a couple other people coming to look at the house too.

I just received notice from my realtor that my buyers from my first flip in Burien, Washington (SW Seattle area) pulled out of the contract because it failed inspection.

Two reasons:
- Roof needs to be completely removed and install new roof. The issue is the top newer layer was installed on top of two existing layers. This creates a problem with weight and is unsafe.
- The electrical is nob and tube and needs to be completely redone.

The inspector said the costs of these two items could be some between $15,000-$20,000. The Buyers are not willing to make that upgrade on their own.

Multiple contractors have told me that you can have up to 3 layers on a roof, but this one failed at 3. Before my (general) contractor started the rehab work, he said he only saw one layer on there, so right now there should be only two. He's going to the property to inspect the roof tomorrow.

My contractor also said he's sold many homes with nob and tube electrical.

So my question to any local contractors, inspectors, or persons of knowledge out there: Should these things have failed the inspection?

I really liked my buyers too. They offered full price the day after the property was listed with 20% down conventional financing and less than 30 days close, I countered with twice as much earnest money and less days for inspection, and they accepted the counter the following day. Any chance I can get them back? I believe they may be first-time home-buyers and scare easily.

Hey @Kevin C. , just an FYI...

There's a law in Washington state called the Distressed Property Conveyance Act (RCW 61.34 + RCW 9.94A).  Working with pre-foreclosures as an investor can be a class B felony, Level II offense.

A lot of experienced investors in the area avoid pre-foreclosures because of this law.

@Howard Edson @Tamar Mar 

I wanted to welcome you both to BiggerPockets!  There was a mention of REAPS here, and I just wanted to throw out my support for them as well.  I joined in August and have been very impressed by the quality of people there.  I think it's probably the best place to meet local investors in the Seattle area, and a great place for your real estate education.

They actually have a meeting today (Thursday) if you guys are able to make it.  A few local, established investors are sharing some of the deals they've done this year.  You can find more about the event here:  http://www.memberize.com/ClubPortal/EventDisplayNe...

Since you are first-timers, you can get in for free if you checkout with promo code "constant".  If that doesn't work, you can look for me there and I'll get you in with a guest pass.  I'll probably be there around 7pm.

Hope you can make it :-)

 Yes, there is!  The "Profit & Loss by Job" report should be right above the "Profit & Loss by Class" report.  If you don't see it in your QuickBooks, maybe this feature was added in later editions (not sure which edition you're using).

The only thing is that Jobs have to be under Customers I believe.  I'm guessing you call this customer that holds all the flip jobs as "Rehabs"?  Not entirely sure on that.

I like David's approach to assigning a class to every job as well.  Maybe a "Rehab" class.  A little bit redundant, but adds flexibility.

Hi Evan!

I sent you a PM, but also wanted to publicly welcome you to BiggerPockets!  Michele's right in that being a contractor and investor is a huge plus, especially with Washington Law RCW 18.27: "Rehabbing a property intended for short-term resale (flipping) often requires a party on title to be a licensed, bonded, insured contractor in Washington."