All Forum Posts by: Sherelle Montague

@Sherelle Montague I've considered it although I work on the Eastside so commute does make a difference, what areas were you referring to?

3/5/2019

Sherelle – thanks for the post / questions and outline

Fyi – there are some conventional loan programs that allow a 3% down payment ….I would recommend using this program versus a fha loan program if possible …this is because with a FHA loan the monthly mortgage insurance remains with the loan permanently and with a conventional loan – you should be able to eliminate the mortgage insurance in the future ……

Also – if you use a FHA loan for the first home - using a FHA again for next property might be an issue …..you allude to this in your question #2

Regarding cash flow analysis ….other items to factor in : utilities / property homeowners insurance ( this will be a little higher when you live in home and should decrease a bit once you convert it to a rental policy / are there any deferred maintenance issues on the house ( roof / furnace / water heater / foundation are the bigger tickets items to watch

Definitely get pre approved so you know for certain what you can afford and also so you can begin becoming more familiar with the numbers …we can assist with this if you want - contact us

Thanks and I hope this helps

Dave Skow 

Hey @Sherelle Montague,

I have helped a few clients buy "house hacks" in the past couple of years and would be happy to chat with you. My wife and I own several rental units in Tacoma and know the market very well. Before we dive too far into the weeds, are you absolutely certain that you are okay doing the drive from Tacoma to Seattle every day? If you are able to flex your work hours you might be okay, but if you are commuting during rush hours, you're in for some long days! 

Hi Sherelle - 

A second home at 3.5% will be hard as that sounds like you would need to do an FHA again (unless you are former military and have access to VA loands).

Are you familiar with Tacoma at all? I invest here and neighborhoods are extremely important. There is definitely value in the "up and coming" neighborhoods but you would have to set expectations as an owner occupant.  

Hi Sherelle, I work the S. King and N. Pierce markets.  I'm happy to connect with you in the near future to chat real estate options.  I can walk you through analyzing MF properties.  If you don't connect with a lender here, send me a PM and I can send you a handful of referrals.  Cheers!

I'm looking for SFR and duplex rentals with little to no remodeling that I could house hack in the South Seattle neighborhoods (Columbia City / Beacon Hill / Georgetown). My budget is ~7% down on 500k-700k and this would be my first property. Given these parameters, what numbers would people consider a good rental investment? After calculating numbers on quite a few properties, I consider to be a "good deal" to be: ~7% CAP rate, ~8 yearly CoC ROI, and any positive cashflow (this is total rent after after I no longer live in the property). In the end it seems like not a very good deal after all. I know people are finding better deals than this. However given my budget and location, maybe better deals aren't there. Maybe I'm just not looking hard enough?

Note: For my calculation I'm using the method mentioned here: https://www.biggerpockets.com/renewsblog/2013/01/1... This doesn't include expenses like CapEx or Utilities.

I sent you a message. Would love to connect