All Forum Posts by: Omar Ongoco

I am also seeking a CPA to help with my first flip I conducted last year. Any recommendations in south king county?

Thank you all for the advice! Ben Meisel it turns out there is no rental cap - I appreciate you bringing that to my attention as another thing to verify when analyzing whether the property is feasible to rent. Paul Biniasz I haven't had a chance to use the calculators yet, but I will definitely check it out! I'm sure it's much more expansive than my Excel spreadsheet. I can see Redmond continue to thrive, which is why it feels like a tough decision for me. But given all the uncertainties in owning a condo, I think I'm leaning towards selling the unit. Tatiana Gershanovich the numbers I provided were really rough estimates; I would still need to field estimates from contractors. I am definitely interested in learning ways to cut down on costs, including negotiating how to lower realtor commission rates - I will PM you!

Hello BP World,

I recently acquired a condo in Redmond, WA just north of DT Redmond/Redmond Town Center. The purchase price was $150k. It was built in the 80’s and it is a 760 square foot space with 1 bedroom and 1 bathroom. This is my second investment property so I am still very new to the process.

I believe that the work that needs to be done to it consists of replacing the vinyl kitchen flooring (there is a burn mark on it), new paint, stainless steel kitchen appliances, and professional cleaning. I figure it will cost me around $6k - $8k for the listed fixes. Given the comps I researched, I believe it can be sold for around $200k-$220k.

This is a deal where I can potentially pocket $12k+, but I am slightly discouraged on the fees that are associated to closing (my assumptions are 3% to buyer agent, 3% to seller agent, and 3% for excise tax, closing costs, and miscellaneous fees). I am also aware that there are tax implications for flipping also.

All the taxes and fees associated with flipping is painful to see, which is why I'm also considering renting it out. I calculated that the principle and interest will be $750, the HOA is $325, and I assuming that the property management fee would be around $120/month and taxes and insurance around $150/month (please check me on the latter two costs). This comes out to $1345/month, which doesn't even include the set aside for maintenance costs and special assessments (how much should be set aside for this?). I could possibly rent it out for $1400/month. Obviously this margin is very slim - I'd like to see more of a $200+/month income. Is the Redmond real estate market worth holding onto? - Can I count on the instant equity I've gained, future appreciation, and rising rent alone? Is renting out a condo feasible or should I stick with my plan of building enough equity through flipping to be able to rent out a SFR?

Thank you in advance,

-Omar

Hello Bigger Pockets World,

I am a long time Bigger Pockets Podcast listener and I recently attended my first Webinar with Brandon Turner on rental properties, which fueled me to become more active in the BP community!

I currently live in a single family home in Auburn, WA by myself but am looking to move into a condo or townhome in Seattle - particularly the SLU, Belltown, First Hill, or West Seattle. The market is so hot right now and I'd like ideally like to jump in that market before it gets even more expensive. Is it reasonable to say Seattle is going to be the next San Francisco (please advise if I am off on this)? With my single income, I know it’s nearly impossible for me to get into that market so I need a creative way to get into it. I am thinking about buying at the foreclosure auction, but I am also open to other strategies.

I am interested in house flipping and buy and hold in the greater Seattle area, mainly King County and Pierce County. One goal of mine is to flip houses to build up my capital. I eventually want to get to the point financially where I can acquire rental properties while also continuing to flip homes.

For buy and hold’s, my five-year goal is to acquire five rental units that cash flows, consisting of single family and multi-family units. I aim to refine my criteria of rentals, guidance on how to acquire rentals for low money down, tax help, legal advice, and property management recommendations. Overall, I look to build my real estate team, which will allow me to reach my goals.

Thank you for your time and support!

-Omar