All Forum Posts by: Pat Foy

thanks Lane and Mike. I’ll check these leads out. 

Hello, 

We are in the planning and permitting stages of a SFR remodel in Seattle WA and we have an urgent need for a Structural Engineer to work with our architect, to help in drawing up the structural plans for the Seattle city building permits. Can anybody out there recommend a Structural Engineer?

Any help would be much appreciated.

Thanks.

Thanks Erik, you make some good points, particularly about the valuation. The property is way over priced for the NOI. They want 1.6m, but at a 7% CAP it works out to be worth about 900K. That will give something for the seller to think about.

My next steps are to have discussions with the HUD office, as to how the expenses really play into the rental subsidies.

More to come.

I am looking to purchase a 50 unit multi-family property that has nearly all renters on Section 8 subsidies. The seller has provided the rent rolls and previous year (2017) Income Statement. I noticed that the expenses of this property are 80% of the gross revenue (yes, eighty percent!). The reason for this I have discovered is because the property has a live-in manager and 2 staff, which accounts for a large portion of the expenses. At the current state the property does not cash flow. Now if I am able to reduce the expenses to say 50%, by replacing resident management and staff with external property management, the property will cash flow nicely.

However here lies the rub: in order to maintain the Section 8 subsidies there is apparently a budget which gets submitted to the Dept. of Housing and Urban Development (HUD), which accounts for all these expenses in their calculation of the Section 8 subsidies. So if I reduce the expenses to get the property cash flowing I will get penalized by the HUD who I am told will account for these reduced expenses thus reducing the Section 8 subsidies I receive, possibly cutting rental income by about 70% !!

Does anyone out there in the BP universe have experience with this dilemma and perhaps have advice and/or a work around?

Thanks.

Hello,

I currently live near Seattle, WA and I am considering buying a multi-family property in Aberdeen, WA, which needs some roof work and possible some other touch-ups. 

Can anybody recommend a reliable, trustworthy contractor based in or near the Aberdeen area?

Thanks.

Pat.

I have just set up my first real estate investing company in Washington state and among the many things I had to do to get going was registering with the State Department of Revenue. I got a letter back saying that I had to file state taxes every month.

While this may be simple at first, as I am getting started and have not made any revenue yet, I was quite surprised that Washington State requires me to file EVERY month. Is this normal?

Any advice and recommendations of any tax accountants would be much appreciated.

Thanks in advance.