All Forum Posts by: Nicholas Zaharevich

Kavin,

Fist of all, welcome! You're in the right spot.  The closest group I am aware over there is BROA (Benton Franklin Rental Owners Association)

http://bentonfranklinrentalowners.com/

It isn't an investor meetup kind of group though. 

I wish I had more for you, but I am from the Walla Walla area and recently purchased a property in Waitsburg. You can reach out to me at any time. 

Nick

Originally posted by @Alan Reza:

@Nicholas Zaharevich Wow no vacancy in 7 years that is outstanding! What do 2/1 SFR's typically rent for out in the Tricities?

 Mine is renting for $1125, which I feel is slightly under market. I increased the rent on the last lease renewal, but not as much as I probably should have. Property taxes spiked this year due to the increase for public schools. I could easily rent it for $1175-1200.  I also allow pets, which brings tenants from the apartments who don't allow pets. 

@Alan Reza I have multiple homes in the TriCities area (Richland, Kennewick, and West Richland) as well as one in a small rural place called Waitsburg. The TriCities area has picked up significantly over the past few years. I have a 2/1 SFR that was purchased for 96K in 2010 that now would sell for over 160K in that area. The cash flow is great on each of the properties. There are lots of great properties, if you can find a deal that works. Newer apartments and a lack of available rentals drive rents up. I've never have a vacancy in 7 years unless it was self-inflicted (voluntarily upgrading properties). Developers are building, and the cities are expanding fast. I haven't done the homework as to what exactly is the driving factor behind all the growth in the region. Hanford hasn't exactly expanded, but something is going on. More people = more services = more jobs = more homes. My wife believes the LDS Temple that was built also had an economic impact on the region.

Investment Info:

Single-family residence buy & hold investment in Waitsburg.

Purchase price: $87,500
Cash invested: $28,561

Contributors:
RaeLynn Zaharevich

The 2 bed, 1 bath house was a great deal bringing in $250 in monthly cash flow was almost lost due to,what I feel is incompetent lending professionals. I'm the end, it worked it great!

What made you interested in investing in this type of deal?

I was home for an annual family get together, and was asked to help the lady down the street move her things because she had recently sold her home. While I was helping her move, I couldn't help but check it out on Zillow to see what she was asking.

How did you find this deal and how did you negotiate it?

A few weeks later, I discovered that her house was back in the market at a reduced price, so we decided to make a lower offer in order to make this a great buy and hold rental. My original offer was declined and my agent was unresponsive, so I fired my realtor and went straight to the listing agent. We discussed each of our concerns, hers we're more about getting the owner a small nest egg, and I was looking to meet my cash flow (quad chart) criteria. We found some middle ground.

How did you finance this deal?

I originally started with a conventional loan and through the process, the lender kept kicking the can down the road. I complained enough that another investor listened, looked at the deal, and funded me the amount I needed... And 1% lower than the bank!

How did you add value to the deal?

We didn't do much other than update a few things. We replaced all the floors with LVP, replaced every outlet, light switch, and light fixture (finding some serious fire hazards along the way). We also painted all the walls, doors, and trim.

What was the outcome?

We were able to get a tenant in the first of the month paying above market rent.

Lessons learned? Challenges?

Banks suck... And I only want to do cash deals from now on.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

None and I'd recommend, and my lender prefers to remain private.

@Benjamin Ulloa I like working with Greg Tripp.

@Brian Bradley reach out to Lynne Carpenter at 509-382-2020.

@Nate Currier Welcome! Glad you found BiggerPockets. 

I have properties in the Richland, WA and West Richland, WA area that have had little impact from the massive amount of apartments and homes being built. If anything, I have been able to increase rents as some of the newer 2BR/1BA units rents are increasing.  Demand is still high in that area.  If anything, the typical apartment renters are moving into the surrounding rental homes because they want a little space but cannot afford to buy. 

@Javier Lombera If you ever have any questions, you've found the right place. Everyone here is going to be able to tell you what worked for them. It's up to you to find out what will work for you. Ask all your questions, you will get serval answers. Same cookie, different recipe.

@Javier Lombera Welcome!

The one 2 bed/1 bath house we have has never been vacant in the 7 years we've had it, but it does turn over more frequently than our others that are 3 bed/2 bath. The smaller house tends to rent to older singles or younger couples.