All Forum Posts by: Michael Jones

Andrea,

If you going to go into multiple families then consider using a real estate broker instead of an agent.

Andrea,

Consider using Redfin to search and Auburn is some what reasonable. The markets's pretty hot this time. 

We bought a four plex in December of 2013 which was the very end of the crash in the Seattle area. The market started going back up a year later and is now touchable for us. Two four plex units across from us sold this summer for $150k above the 2013 price. They sold in four days and over the asking price. This is not to discourage you but to show you where the market is.

Remember you make all your money when you buy. A good, quick rule: you need to be able to make 1% of selling price in rent for it to be considered. We're not buying in this market we're saving and getting out of debt at this time.

We buy when the economy is terrible and unemployment is high. Unless a great deal comes our way. Remember this is a business.

Since you haven't started and may need some resources. You can look at our website Soundtenement.com and at Washington's RCW 59 landlord and tenant act.

Good luck!

Why a duplex? Why not move up to a four plex? You can almost buy a four plex for the same price as a house in the Seattle area. Not in Seattle but in the outline areas. Greater income potential with less risk and it's still considered residential. When someone moves out, your whole income isn't gone on a four plex. If they move out on your duplex bye...bye rent. Just a thought. I think the four plex is great start, if you have the resources. Good luck and welcome to Seattle.

Bill,

Thank you for this understanding. This is also my understanding. A true LLC would be hold the assets and the liabilities not you personally. It's easier for a lawyer to pierce the veil if you own all the asset and liabilities and not the LLC Everything is in your name and not the LLC. The LLC owns nothing. So, Question: Does the LLC really protect you and your assets when you're small?

It has come to my attention that a LLC is some what hollow until your business is considered commercial. Here is what I mean by hollow. Your LLC has no true assets or liabilities until your property is five units or greater. Up until this time, all of your assets and liabilities are personal as far as the bank is concerned. Even if you have the property paid for. Your bank sees the property as personal even if it is quit claimed into the LLC. It is my understanding in order for the LLC to truly stand alone it must be commercial and you are not commercial until you have five or more units. Please help me understand if I'm starting to see LLC's correctly.

Once you're approved for the HeLoc the bank does not care how you use it. That's the beauty of a HeLoc. The HeLoc is associated with a certain property whether you live in it or not. If the HeLoc is being paid the bank shouldn't care.