All Forum Posts by: Rudy Manna

I focus on IRR more than anything else. For Tacoma MFH the estimated range of IRR falls between 10% and 30%, with fair expectation of 20%+. I also look at a worst case scenario IRR of 10% (flat prices, high maintenance, slightly lower rent) .

Secondly I think 10% for maintenance costs is reasonable excluding planned upgrades (roof, heater etc.). I won’t include them in the costs since they should increase the value.

I will also be careful of property managers who mark-up maintenance costs in addition to their regular fees. Totally doesn’t make sense since I will expect them to mark down because of their scale.

A disruption for the property management space is long overdue. I can bet that 10 years from now most property managers (except the best ones for sure) will be out of business, replaced by a more efficient, investor/tenant friendly and technology driven system, at a much lower cost.

I bought a triplex in South Tacoma about a month ago..6 bed/3 bath/2100 sqft for 231k.. 900 $ pm sounds reasonable to be. I put one unit for $875 and I had 100 contacts (not exaggerating!!!)  within one day. I agree the neighborhood is a bit rough, but my bet is that it will be lot better few years from now..

Rodent control seems an ongoing issue..

@Catherine German , any referral on rodent controllers? 

@Andy Whitcomb - Can you tell me where you own the vacation rental and how does the cash flow look like. So, if I keep aside management, maintenance , utilities etc expense do you hit the 1% rule?

Is investing cash flow in Indy a fashion statement?

Why not Cincinnati, Dayton, Kentucky, Idaho, Florida and the zillion other places? 

Smells like a investment bubble create by some turnkeys providers. Or just plain trending fashion?

You can always find a cash flow spot nearer you than Indy.

@Brandon Turner is  uber - expert and hyper-local. He probably knows everybody in Aberdeen  by name:).

Personally, If I am to invest in Aberdeen I would first do an up-fornt investment and hire a property manager and a handyman. Once I do that it would be a very interesting proposition.

Setup keyword alerts for all the locations you interested around Seattle.

I get most alerts (almost 80% from Tacoma), ~20% from everything else. Kind of a data driven validation that BP members most active there.

@Pradeep Tiwari - not to worry. As they say " Deals of a lifetime comes every day".

15% Cash on Cash/ 25% IRR are pretty achievable south-side Tacoma, Lakewood, etc. You may also consider houses that require some renovation, that way you can generate some instant equity. There are several other strategies you may consider (BRRRR, subdivision etc.) but acquiring a simple cash flow property in Tacoma can be a good first step. Rental market in Tacoma is really hot with huge demand, and very little upcoming construction. Price appreciation outlook is also solid.

As a alternative to Tacoma you can also consider Bremerton, Marysville/Everett. Though any of those places cash flow will be lower.

Personally I think, condos in Seattle, or for that matter condos anywhere are bad investment. There can be exceptions (like this year we had a stellar condo price growth), but most of the time they lag in price appreciation, and in case of downturn first one to get hit.

I will stay away from Aberdeen or rural WA, unless you really know your stuff. The economy is stagnant, and support stuff such as property management and handyman are not readily available on top of low quality tenants that comes with high churn.

Is docusign of lease agreements a good idea? Is it acceptable in court? 

I am getting a new tenant and this should simplify the process.

one more question, I am charging seperate utilities fee, Can that be clubbed with section 8 ?

my candidate have medical claims but no evictions as such. Her parents live nearby and her mom is co signing and trying to help. The income doesn't look good. Mom's credit doesn't look good too. But then I am thinking if she has a section 8, what are the risks? I am keeping one months rent as security deposit and little cushion. Thoughts?