All Forum Posts by: Sam McPeek

Congratulations Will! So awesome to hear that this is finally on it's way to being over...

@Marcia Maynard

@Franklin Romine

Thanks for the responses guys! I realize the ease of conventional vs. commercial financing. I was wondering mainly from the standpoint of being able to add value based on pricing according to NOI as a commercial asset vs. pricing according to residential comps.

Also, I was looking at this as a 'creative way' to make the property work. For instance, as a single 4-plex it doesn't matter how high the rents go or how much I lower the expenses the price is going to be according to comps in the area. But, if it was a 8-plex the value of the building would be based on my NOI and not just on comps in the area. I was thinking that might be a way to make a deal work...

I was thinking that it also might be a way to lower utilities, taxes and insurance...but Marcia's comment about having separate insurance policies for each building is interesting as that would not save money.

I am looking at 2 identical 4-plexes on separate small plots next to each other. One 4-plex lot has an easment for the other. Separatley, I can't make the numbers work at the prices 4-plexes are selling in this area.

Is there any upside in combining the plots to create one 8-unit apartment complex? Is it possible? What is involved in doing that?

It seems that if combined, there could be the upside in reducing expenses (insurance, property taxes, etc.) and being able to add value to the bottom line, more so than as a 4-plex.

Anyone have expierience with this kind of thing?

Welcome Brad. We have a monthly meet up in Richland...I'm sure @David Fritch 

can put you on the email list if he hasn't already.

I drive a 1995 Ford Ranger and have a 1986 Chevy G20 Cargo Van for rentals/maintenance. Wife drives a 2009 Mitsubishi Galant. All are paid for and I won't ever have a car payment again. ...although a 2014 Tundra to match @Steve Olafson truck would be pretty sweet! Does that have the roll down cargo window?

I know in Washington, they have to be replaced if you do anything to the electrical. Labor and Industries will force the replacement. She will not have to disclose the reason for replacing the panel, but it will be reflected in the permit history on the condo. If she is an owner, it would be worth it to push the HOA to suggest replacement to other owners...but they can't force them.

@Travis Tindell What if you could work for an engineering company @ $30K per year for 4 years instead of paying for school? You finish your 4 year apprenticship, take the Engineer in Training exam, and then claim your raise to $80-100K. You then work another 4 years to be eligible to sit for your Professional Engineering exam. In the state of Washington, you can do it...you just have to find someone willing to take you on as an apprentice of sorts. Also, I should say that we don't have starting out of college salaries at $80-100K for engineers...not even in the government. Unless it's Chemical Engineering...

I'm only directing this at you because you were the last one to post about engineering degrees being worth the price of student loans. I tend to agree that the technical degree fields are worth the price of tuition more so than others, but there are ways to avoid the loans. It's easy to justify the loan debt right up until you get laid off for the first time...and then it will be a hard road. In O&G and in my field of Civil, its not a question of if but of when you will be laid off. The fields are just too cyclical.

That's awesome that you are starting at a CC, huge savings there. If I was you, I would avoid taking debt on your degree if at all possible. Good luck to you!

@Eric Taylor I work as a Civil Field Engineer, and I don't have a degree. I went to college, but I wasn't a good student and never graduated. The education system doesn't teach the way that I learn...which is an argument my wife and I have from time to time (she's a teacher). That doesn't mean I lollygagged or expect something miraculous to happen...that's just silly.

What I have realized is degree or not, nothing comes automatically. In hindsight, I should have gone to a trade school, or into a Union apprenticeship (I'm not pro-union, but it would have been a good move at the time) instead of wasting time at college. University doesn't work for me, but it did for my wife.

I worked my *** off to get into my current job, and now I'm working my *** off to add wealth through REI. Engineering is one of those fields where most are college educated, and I meet a lot of guys like you that think being college educated makes them better.

It doesn't. Usually I just laugh to myself as I get the next promotion....

@Account Closed Thanks for the reply! Of course you can use my bullets...you might want to take out some of the vitriol though! ;)

@Steve Olafson I agree with you. I look at my personal mortgage as a liability, really somewhat grey since it is a multi family. One of the great things I've gleaned from BP is that there are different ways to invest AND succeed. I used to cling to DR because I mismanaged my finances early in life, and I needed the plan. Now, I see the benefit (&risk) in using debt for REI. I'd love to have my house paid off (paid off it would earn $1600 per month), but if a better deal comes along I'd go for it.

Different strokes, right?