All Forum Posts by: Ryan Hodges

 I'm sure you've already gotten plenty of replies that are aimed at answering your question but I'll just add that I'd recommend finding "paint & carpet" opportunities to start with.  In other words, the homes appear as though they only need new paint and new flooring. Do this and you'll have less surprises pop up all at the same time which allows you to learn and roll with the punches at a medium pace :)   

Don't let your guard down.

I own a home that used to be a section 8 rental unit that had a great tenant in it. She regularly passed her inspections with flying colors for over 4 years.  She had a handy man come around bi-annually to take care of this and that and generally left the home well maintained.  So much so that I eventually began to put too much trust into the relationship and let my guard down for the remaining 2 years.  The very last year was very much the opposite of what I would have expected.  If the neighbors knew how to get in touch with me I imagine I would have been notified much sooner but in the beginning of 2020 I decided to drive by and check up on the home.  I arrived 3 days after a large drug bust had occurred at the home.  Neighbors said that there had been scary suspicious activity in the home for most all of 2019.  There were 11 vehicles parked on my lawn, the door was wide open, and a sign posted on the wall next to the door read "hazardous chemicals have been removed from this home."  Law enforcement suspected methamphetamine was being manufactured there although I later found out that it was in fact DMT.  Regardless, the home was a wreck and I had to undergo certain regulated processes for suspicion of Methamphetamine Manufacturing that I would not have if they had known it was DMT to begin with.  Today the home is cleared, remodeled, and with no damage against the title.  In hindsight, I most definitely could have avoided this had I not let my guard down. 

@Sherief Elbassuoni , of course.. But I'm just curious to know what others might think of this deal just to see how on point or how far off base I am.  I actually purchased it for 180k with the possibility of long term buy hold in mind.  I found a lender that is willing to refinance and let me sell on a contract without pulling a due on sale clause so I think that's going to be my strategy here. 

For the same reason many people hate their boss.  Because many landlords under value/under appreciate their tenants.  I've met some who's actions have implied that running their units into the ground and/or treating their tenants like trash equates to cash flow.  To anyone who operates this way, this isn't the business to be in if you feel you're above the people you rent to.  You provide a service and they are your customers.  Treat them as such and you'll be OK.

House is located at 6505 V Pl. Long Beach WA 

Bank foreclosure, opening bid 163k, can only view from the street, currently occupied, 6 acres, ~2000 sq ft house, two large two bay shops, and has a large pond with a dock in the back yard.

No other tax, liens, or judgments other than it may have 4-6 months of water bills that will need to be paid by the new owner.

Assume you're me...  I own property down the street and want to continue investing in this area.  I have cash to purchase and would like to either add to my rental portfolio, sell owner financed, or flip/wholetale.  Would this deal interest you?  What max price point would you consider?  What exit strategies would you drop/consider at various price points?

We had the same intention of buying our home in Seattle with a couple year plan to move out and rent. We ended up liking the school district, prices rose super fast, and I found myself more or less stuck in a home that I'm not super happy with. On the plus side, it eventually enabled us to get a FAT HELOC which we used for other investments. We may still move out and rent one day and things that I tend to focus on are the infrastructure to a good rental unit. New water heaters, appliances, pet friendly hard water resistant floors, tight plumbing, etc. Room rentals are big money makers in some areas so retrofitting the home to cater to multiple lifestyle tenants might also be worth looking into. Maximizing the bed to bath ratio, ensuring each tenant has a space for their possessions, and plenty of room out front for parking. These are the things I'm considering when renting our home some day. Idk.. probably not quite the answer you were looking for, but maybe it offers a different approach to your plan.

Does being a licensed agent align with your long term goals?  Do you love hustling on the weekends?  Would you be using it to supplement your income around your flips or just to eliminate commissions on your flips?  If you're just trying to eliminate commission on your flips, many seasoned flippers I've talked to feel there's too much liability in holding a license.  And if you're just trying to eliminate cost in your deals, go be an inspector or a general contractor while you're at it.  But that doesn't make sense because you don't have time to learn all that right?  If you feel you've got to go down that path make sure you pick one that truly aligns with your long term goals and realize it never hurts to pay for these services if its allowing more time for you to focus on those goals.  

To the landlord...   Step up your game.  You should have replaced that immediately.  Don't leave it up to your tenants to decide when and what to replace in your units.  Perception is everything and if your tenants perceive that you don't care about them or your home, neither will they. 

Great Story & Keep the momentum going. Our first SFR got us the $ we needed to buy the 2nd, and the 2nd our 3rd and so on.

I'm getting an average of 9% in WA state plus a 50% (monthly rent) turnover fee