All Forum Posts by: Nicholas Q.

Allison Karrels yeah I've thought about that too but will a bank give you a mortgage if your down payment comes from a private loan?

Originally posted by @Allison Karrels:

How do you structure the monthly cash flow between partners? For example, I currently have several SFH but my brother in law has expressed interest in getting a rental together. I assume we would have to form a formal partnership, put income into the partnership and then dispense cash out to each other each month or let it sit in the partnership and grow for the next purchase. Is that close?

Hi Allison - I know this post was a long time ago, but I'm wondering if you ever figured out how to manage cash flow with your brother in law?  I'm thinking of a similar partnership with a family member.  In my case, I would manage the entire deal and my partner would put up the majority of the money.  We would split the profits 50/50.  That is all well and good if it is a simple distribution of funds every month, but what if there is a large cap ex expense or what if one us wants to pay down the mortgage with our profits?

Originally posted by @Tyler Morgan:

@Shelby Williams @Nicholas Q. @Zack Clark  @Jacob Wyatt  @Ana P.

This is the 2017 Market Data Report for Spokane. PDF Let me know if you have any questions.

 Great info!  Thanks @TylerMorgan!

Tyler Morgan could you send me the 2017 NIA Black Report also? I too am a Seatte REI with some experience in Spokane and looking to invest over there.

Brilliant! Thanks Shaun Matusewicz !

I have a 2 bd 1 ba SFR in Seattle. The basement is partially finished, but I plan to spend ~$35K to put in another bedroom and bathroom in the basement. I figure I could increase rents by $500/month (17% Cash on Cash Return).

The problem is that I just signed a year long lease agreement that doesn't expire until next April.  Is there any way I can remodel and raise the rents before then or do I need to wait until the lease is up?  Seattle seems to have a process for terminating a lease early due to rehab, but it is a 6 month process and may ultimately require me to pay the tenants a $1,600 fee for relocation benefits and I can't start the rehab until the property is vacant.

They are amazing tenants, so even though I'm excited about increasing value and cash flow ASAP, I think it might be worth keeping them through the year.  At this point, I'm wondering if I can wait until early next year to start the rehab, give the current tenants a discounted rent to stay through the rehab, and then asses a rent increase when the lease expires.

@Bill F. Thanks for your thoughts.  The loan from my MIL would just be for the down payment on a conventional loan with a traditional lender.  Wouldn't most lenders not let me use money on loan from my MIL as a down payment?  Would I need her to cosign with me?

Hi all, Thank you so much for your responses. I have a bit more hesitation about doing a deal like this with my MIL in case something goes wrong. Definitely don't want to hurt the relationship. I'm still several months from pulling the trigger on this, but I leaning towards the BRRR strategy. I would essentially take a loan from my MIL for the down payment. Buy a property, rehab to add value, rent it, and then refinance to pull cash out and pay her back plus interest. This might be a bit difficult to do in the Seatte market because he competition is stiff and there just aren't that many good deals that I've seen. I'm thinking of moving my search to Spokane where homes are still affordable. I travel to Spokane several times a year so I think it could work. I continue to welcome any thoughts or advice. Thanks BP community!

Hello,

My mother-in-law recently inherited about $150K. She is single, doesn't have much of a retirement, and I'm concerned she will just spend the money if I don't help her invest. I am fairly new to REI with a couple of SFRs in the Seattle area. I'd like to use this as an opportunity to help her, learn new skills, and possibly even generate income for my family.

My initial thought is to help her find a duplex or fourplex near my home north of Seattle.  I would help her through the whole search and transaction process.  Then, I feel confident that I could act as the property manager and take a small % of the monthly income.  She gets some passive income to help with retirement.

I just wanted to bounce this off the community to see if this is a decent plan. Would you recommend helping her with a different type of REI? Where in Seattle area would you recommend?

Hello BP Community,

My wife and I just became landlords this year with two properties.  I'd like to find a tax accountant in the Seattle area that is well versed in real estate tax laws.  Any recommendations?

Thanks!

Nick