All Forum Posts by: Jennifer Clancy

After further evaluation of our goals my husband and I are considering selling our investment SFR here in Washington, and taking the profit to purchase another property outright in a cheaper part of the country. If we sell we will have about $80K in profit (we owe $170K and it will sell for at least $250K. We have been considering a 1031 exchange, to acquire a property or put a down payment on two properties (though that may be ambitious). We aren't familiar with the east coast but we are drawn toward the low prices and weather.

We would like to know if anyone can suggest cities, towns, neighborhoods, where the economy is in recovery, violent crime is low, and a decent property can be had at a low price, preferably with a pool or near a body of water.  Im desperate for suggestions about the location (I've been thinking Brevard co, FL or Atlanta,GA.

 I would also like to hear from others who have done a like kind exchange, to hear about the steps and companies hired to complete the deal.

I appreciate any feedback.  Thank you.

@Tiffany Plovie and @Stacey Olson I would also be interested in meeting up!  Add me to the list!

@Account Closed 

I live by the motto "safe is the new risky" we will have cash reserve but to think that if anything can go wrong, will go wrong, Is pessimistic.  If I believed that I would never have purchased realestate, never gotten married, and certainly never become a nurse among many other things.  Maybe it's the optimist in me, or my faith knowing that God has plans to prosper me and not harm me that make me think I should over-extend myself rather than play it safe saving for a rainy day.  After all if you expect rainy days that's what you tend to get.

@Stacey Olson 

That is very cool!  It's a small world isn't it! :)

@Brandon Turner 

Thank you for reading my post!  I love listening to the podcasts, that's all I listen to when I'm working on the property, there a great inspiration!  Thank you for the tip about adding keywords.

@Gerald K. 

Thank you for the info.  Because of the work we've done to both properties and the fine finishes we've used we are averaging 4 applicants a week when we list a property.  So we don't believe vacancy will be an issue we will face and because we've had a plumber come in and fix/install all our new fixtures we feel it's relatively safe to say there won't be an issue that needs fixing or that will damage the property.  We have a tile roof so with regular upkeep it should last forever.  We do know we will have to hire a PMC once we move, but we've tossed around the idea of hiring a tenant since it will inevitably be cheaper and they'd appreciate the discount in rent.  

 Hi Chris,

Thank you for reading my post and replying!  We are not in South America yet.  We moved away from Australia in late March 2014 and are now in Edgewood, Washington (about 25 minutes south of Seattle) performing renovations.

We do plan to move to South America because of the super low cost of living and the extremely laid back lifestyle.

We have a single family rental as well as the multifamily.  We get $450/mo from the single family and we will get $1850/mo from the 4plex (after water and garbage are paid).  So we will have a total of $2300/mo in investment income.  

We plan on moving to San Juan del Sur, Nicaragua (It has great weather, great beaches, and it has a high population of english speaking expats).  Nicaragua is a peaceful, developing country and one of the cheapest places to live, there is a lot of information out there on the topic of expat relocation to Nicaragua but short hand, in-order to immigrate there you must have an investment income of at least $750/mo or be 40yrs old or older and have an income of $600/mo+$100 for each dependent, this is waived if you purchase a property for $100k or more, or invest $30k in a business.  It costs about $600 to rent and that usually includes water, power, and maid service (in some places).  You can hire a maid to come in 6 days a week, 3 hrs a day, and you would pay about $100/mo.  And if your an animal lover a serious vet visit/hospitalization that would costs thousands here would cost 80-90% less there.  Food is very inexpensive and expats can more than comfortably "get by" wanting for nothing on $1400/mo this includes all expenses (gas, food, drinks, housing, utilities, phone, entertainment, etc.) They also have great business, tax, and import laws.  

Well thank you again!  I hope I can update you after we experience the move!

 Hello Michele, thank you so much for reading my post!  We are living in one of the units, we will be until we finish up with the renovations and refinance.  All the original tenants were on month-to-month leases so we were able to jump from unit to unit.  We still have two units to do; we're averaging 45 days per unit, the major set back is the cash needed to purchase the materials. Except for the laminate which we purchased at Lumber Liquidators on a 24mo 0% interest deal we are doing everything out of pocket...(It was a bit of bad planning on our part, we thought we could get an equity line of credit on our single family house but because it's financed as an investment you can only take out a very small percentage of equity).  We've done many of our purchases on our Home Depot card which also has 0% interest for 24months.  It will take us about 3 months to accrue enough cash to purchase the materials for the next unit.  So we are looking at a six month wait before our refinance and seven to eight months before the move! :)

Hello!  My name is Jennifer Clancy and this is my newbie story.  My husband and I became accidental landlords in August 2013, we had the opportunity to live in Australia and we took it.  We did not want to pay a mortgage while our house sat empty and we couldn't sell and make a profit, so we hired a PMC.  As our time in Australia was coming to a close we realized we needed a place to live when we returned to the states.  

I started researching and about a month later we were refinancing our house to a conventional investment which lowered our monthly payment $200 and freed up the FHA loan for our next purchase. I looked for a multi family building that met my criteria: location-safe to walk alone, 3-4 units, 2beds each, and under $300k (the cheaper the better) I wished for a yard, garage, fireplace, more than one bathroom, and close to a lake. I searched for a little over 3 months online and put offers on 4 properties, site unseen.

1) A short sale in hill top Tacoma, a 3 story triplex + detached single family.  It was listed for $220k, after extensive research I offered $130k (for poor area and about $30k in needed repair) my offer was rejected and 8 months later he accepted another offer for $130k.

2) 4plex in South Hill Puyallup on 0.5 acres asking price $350k offered $355k.  The layout of the units was open and had a spacious living area and modest bedrooms, I was smitten with the kitchens.  I had to withdraw the offer after 2 weeks of waiting on the seller who was dealing with a sick elderly wife.

3) 4plex in Auburn asking $450k offered $420k agreed on $430k- I had a pseudo panic attack immediately after our offer was accepted.  I wasn't in love with the layout, the tenants, and especially not the location. After the inspection found that the 6 month old roof was leaking in multiple spots we walked away.

4) 4plex in Edgewood asking $520k purchased for $450k.  We had previously had our realtor look at this property and decided to pass, doors were broken, holes in walls, and it looked dark and dingy.  I couldn't tell what the layout was but I knew each unit was a townhouse, had a detached garage 2bd/1.5ba, ground access to a yard, a fireplace,and it was close to a lake.  

After our offer was accepted we signed our documents at the US Consulate and financed FHA. Because the units were so torn up we knew we had to renovate. We estimated $7k in renovation materials per unit. In actuality it's closer to $10k because of tools, tax, consumable materials, and unexpected expenses (remnants of a slum lord ie: rotten subfloors, 30year old toilets, broken doors everywhere...)

Financially this building has the most potential to make money compared to the others. After renovations rents went/are going from $950-$1050 to $1250-$1350. We hope to refinance after we're done to a personal conventional, drop the PMI ($500/mo), cash out our equity and relocate to South America. It's not a glamorous goal but it will allow us to retire at the age of 30.

Our renovations are as follows:

Laminate $1.99/sqft

20x20 polished porcelain tile($1.07/sqft) w/backer board, thinset, grout $2.85/sqft

9' Granite counters $115 pc

Low flow toilets $135 pc

Low flow Delta showers $200 pc

Pedestal sink $50pc for half baths

Sink faucets from China $54 PC

New bathroom vanities 48" for 2 center units $650 each

New bathroom vanities 60" double sinks for end units $900 each

New blinds for all windows verticals in living & dining, minis in bedrooms $500 from StarDecorating

Electric fireplace insert ($250) w/ ledge stone surround ($5.99/sqft) and mantle ($20) $500

New doors $42-$64 each

Kwikset handles & knobs $500 total for all units 

Modern kitchen cabinet handles $50 per unit

Tamper resistant modern outlets & switches-Leviton $200

New lights $370

LOTS OF PAINT!!!! About $600 per unit

Other miscellaneous expenses: drywall, 2x4s, trim, framed mirrors, caulking, sandpaper, screws, finish nails, various tools, etc.

Oh and fence panels & materials $1400 total for all units; we deducted a total of $750 from the first new tenants rent over a period of 3 months to install it.

Well that's my story, I would love to hear from others who have similar goals and experiences.  I would also like to network with anyone that has made the move to Nicaragua/Costa Rica.  Thank you for reading through my first post!