All Forum Posts by: Phil Wells

Major economic drivers are a great place to be near. Hospitals are the prime example and strong universities like Gonzaga are a good bet too IMO. The area itself is pretty cool with a ton of things to do down there.

Have you explored all the energy efficiency rebates you can get that may take care of some of the on going maintenance issues in a cost effective way? e.g. water heaters, windows. https://myavista.com/energy-sa... 
Otherwise, unless there's any sort of ROI to be had, e.g. increased rents, from an upgrade unfortunately maintenance is just part of the fun.

Your question about whether it's time to sell and upgrade comes down to your own personal goals. Are you at a stage in your life where having solid cashflow is what matters or are you seeking long term equity gain, eventual massive cash flow and generational wealth? If the former, don't sell hang on to the properties, maybe add 1 or 2 and be happy. If the latter then maybe it's time to consider a 1031 or some other method of pulling equity out to finance new properties in markets that have more the sort of rent/value ratios you're seeking. 

Richest Man In Babylon - best book on business and personal finance out there. Very relevant to real estate investing - real estate is a business!

I'd say the 20% that succeed answer their phones...

In all seriousness, it can be a tough gig. The image and the low barrier to entry brings in a lot of people looking for a quick buck. The reality of running their own marketing, prospecting, administration, book keeping, etc etc etc, hits people pretty hard and they perform poorly in one or more areas and ultimately fail. Having 100,000's of people entering the business every year with the same frame of mind means there's always fresh reasons to say "most realtors suck".

Maybe there ought to be another organization other than "Realtor" for those with over 2 years experience or for those who have met another threshold.

I think I agree with David, a HELOC might be worth exploring if you can't get a better rate on the entire mortgage. This might be beneficial in the long run too as you can always dip into it to fund future investments.

You just have to take the time to find the right one and make your expectations clear at the outset. Like anything, it's a numbers game. 

Hi Blake, 

Glad to see you're looking at getting into the housing market in such a smart way. Spokane has plenty of properties that need work that would be great candidates for the sort of live in flip/BRRRR hybrid you're suggesting.

In terms of neighborhoods, this is a very subjective thing. When viewing a house, drive the neighborhood, walk the streets, come back at night to do the same and get a really good feel for the area. Look up local crime statistics, look at local school ratings, etc, etc. 

I'd also suggest looking for areas of town that are attracting investment and/or undergoing rejuvenation too - Kendall Yards, for example. Read the local papers & business pages (Spokesman Review is a great one) to get a feel for where development and investment is going.

Also consider being located near major economic centers like hospitals or universities that are less susceptible to market swings.

Feel free to reach out to me directly if you have any questions, I'll be happy to help.

Phil

Spokane is experiencing double digit % appreciation right now. All economic signals are pointing in the right direction too, more jobs, more business expansion, great schools AND low cost of living.

That's a crazy COC return if you were to buy at 1M and get <3K in rent. If I were living in Seattle I'd be looking to house hack a condo or something. I'd then be investing my money elsewhere - obviously I'm biased but places like Spokane offer a way better ROI.

Spokane is a good bet. Double digit appreciation, solid rental market, big business opening operations and expanding operations in the City.