All Forum Posts by: Jake Alger

Hi Matthew,

Welcome to the BP community!

I too have a background in software engineering. Ultimately I found my “happy place” in Real Estate investing and helping others find their dreams homes or investment opportunities. 

Sounds like you have some experience already and are working to create your criteria for your next purchase, which is awesome. Cash flowing properties, depending on your goals, in the Seattle area can be hard to find but very much possible. If you’re familiar and open to looking at the surrounding areas of Seattle you will have more opportunities.

I would be happy to chat with you and learn more about what you’re looking to achieve. 

Hi @Mindy Jensen,

You aren't alone!  I absolutely attend all of my buyers inspections for the same exact reasons you mentioned.  I've been there, done that and encourage them to attend as well.  That's their time to ask questions and learn about the property they're buying.  Plus, they're spending the money to have it done!

Not all of my buyers have attended inspections, but I'd say 90% of them do, even if it's dropping in near the end to hear what was found first hand.

Hi Rachel,

It's hard to say what you should or shouldn't do in this scenario.  Without knowing the location it's also hard to weight the tradeoffs or provide any insight into what may be happening to help with the homeless problem in the area.  Are you looking at the property as a rental, flip, primary residence, etc.?  Are properties in the area that are listed, selling?  That may provide some indication into what type of problem the area poses.  Have you raised these concerns with your Real Estate Agent to garner some feedback?

There's a lot of questions I'd have -- these are just a few :)

- Jake

Hi @Hen Ley,

I would say that it depends on where you're located as to what may be customary or help with a sale.  

It's been my experience in the Seattle market that Sellers of higher end, higher priced homes usually have the home cleaned before it closes.  It's not required and sometimes comes at the request of the buyers or their agent.  

Usually the buyers will want to clean a home before they move in anyway, regardless of if it's been done or not.  There's something about doing it yourself, or knowing how and what's been done that appeals to people -- just like inspections.  

The contracts we use in WA say that the sellers should clean the interiors, remove their belongings and not leave behind "rubbish."  Anything that is left behind becomes the property of the buyer upon closing.  There is no mandatory clause requiring them to professionally clean a home or the windows.

Hope this helps.

- Jake

Hi Dino,

First, welcome to BP! This is a great community to ask questions such as the one you have in front of us and I’m sure you will be getting a bunch of differing opinions.

There is quite a bit to unpack from what you posted. 

Related to your question of selling the home and then not being able to qualify for a new loan, that is a real concern. Without knowing your overall financial situation and how the lender is going to calculate debt to income ratios, etc. I think the best first step is to speak with a good lender who can provide some insight and guidance. 

I work with many investors and I can tell you what I’ve seen over the past few years. A lot of people I know who had rentals, whether short-term AirBnB or single-family/multi-family properties, located within the city limits of Seattle, have been selling. The main catalyst is because of the ever changing rental rules — this doesn’t apply as much to you as you’re in Tacoma. What they have been doing is 1031 exchanging to other states, or to other areas such as Tacoma, or more broadly Pierce County. Tacoma still has a lot of room for growth, both fiscally and job wise. Not to mention, less and less people can afford to live in Seattle or the immediate, surrounding areas. Thus, they’ve been buying in places such as Kent, Federal Way and Tacoma. Still close enough to commute, but more affordable. 

It’s hard to give a recommendation without knowing the full picture. Ultimately what sets you up best to achieve your goals is what you should consider. If that means selling a home to buy a new, bigger one, so be it. If that means purchasing another on a tighter budget, go for it!

Hopefully there’s something from this response that helps. I’d definitely be interested in knowing more about what you’ve been doing and plan to do. 

Feel free to reach out!

That's crazy.  I'm not from Florida obviously, but I have never heard of such a thing.  Did they mention anything about what violations they were inquiring about?  I'm at a loss here... lol

@Michael Gonzalez You are absolutely right.  Pierce county is growing pretty rapidly given the affordability concerns for much of King County (that is close to the city that is).  I work with many investors and they too are turning towards the cities you mentioned just south, mainly Renton, Kent, Federal Way and Des Moines.  Even going up north can yield some returns but you need to have more capital to throw.  Anything to the south side of Seattle is still affordable and commutable for those working in Seattle/Bellevue.

@Jeremy Hostetler Replied as well :)

Hi Jeremy,

I'll send you a PM.

Hi Ethan,

Welcome to BP!

What you're explaining, if I read your post correctly, is considered "house hacking."  It's not a dumb idea whatsoever and the point is not necessarily to be profitable, but to reduce the burden of a full mortgage payment.  As the property appreciates or rents increase, you can effectively phase yourself out of the property and purchase another, all while keeping the same initial mortgage.

Newer investors like this strategy because it allows for a lower down payment versus purchasing a "true" investment property (which usually requires higher down payments).  Using this strategy allows you to decrease your cost of living and have someone else paying most, if not all of your mortgage, for a property they don't even own!

For a property around $500k with 10% down, you're mortgage payment is going to be higher than $1900 to $2000 a month. Principle and Interest would likely be ~$2400 a month. Because you'd be putting down less than 20%, you will have what's called Private Mortgage Insurance (PMI) added monthly. This ranges depending on the loan/property, but assume another $150-$200 a month. Added to all of that will be property taxes and homeowner's insurance, which again is variable based on location and claims.

** Just as a disclaimer, I'm not a lender.  These are rough estimates for learning purposes. **

I think you're on the right track.  Paying rent isn't exactly fun, but for some people, it works.  I'm a proponent of putting your money into something you own, or having other people's money doing that for you.

I'll send you a PM.  Feel free to send over any questions you have as I'd be happy to answer them!

- Jake