All Forum Posts by: Spenser Harding

Hey! I live in WA and we are looking at a 4-plex in Oregon. WA doesn't have state income taxes where OR does. Will anyone give me a run down of what they experience tax wise when living in a state with income tax and investing in one that does?  My wife and I both have w2 jobs in WA and own rentals in WA as well.  My biggest concern is OR might consider part of our income earned in WA.  We would purchase the 4 unit in our own names and finance as such. Thanks!

Also looking to connect with more wholesalers!

Shameless bump, besides a title search, anything else I should look at?

@Russell Brazil

Agree, if you have 10k for earnest, why not make that your down payment towards a conventional loan?

Calculating 9% cap and a 20% cash on cash after expenses etc.

Fair question. Its relatively close for me to learn to manage a multifamily. I have opportunities to increase rents. Great location. Price plays a role as well, best return for my investment in the area while not paying full retail.

@Seth Rose  Total get where you are coming from. I have only done a few deals but the thing I constantly having to remind myself is R/E is a long game.  What do you want that to look like for you? I have done a few things, I have rentals, I have driven for dollars, I have sent out marketing, I have knocked on a few doors, and I have flipped houses.  You may not know what you want until you try it but one thing is for sure you just need to get started.

as @Account Closed has said, the BRRR strategy is a LOT of work. His point on the revenue perspective is right on. It is straightforward, results are more predictable, and repeatable just like the BRRR, but it's slower. I am nearing the end of my hardest flip and after I am complete I am finding a multifamily ASAP, save the cash flow and repeat. I could refi and have the property for free plus maybe 5k and $120/mo but to me - that just isn't a good return. My wife and I both have full time jobs, take care of our 2 boys and I have spent almost every day off for the last 8 mo working on this house. Not to mention it's 70 miles away and the stress/sleepless nights. 5k and a free property? It's not free. Flipping with the intent to BRRR became a 3rd job.

Hey BP! I need help structuring this deal and the owner contract. There are some items I don't know how to approach. 

The seller's situation: She is an elderly woman who's daughter is helping sell. Daughter is POA. Seller willing to carry a contract for 1 yr with a $25k down payment. Mom and daughter are currently on title and there is a reverse mortgage as an only lien against the property. Seller is proposing doing a quit claim dead to remove daughter but elderly seller remains on title with a 10% holding-Seller worried being off the title will trigger due on sale with reverse mortgage company. At end of 1 yr term, I refi out of property and remove seller from title. Seller would carry interest only contract.

My situation: Completing a flip so capital tied up for next 60 days or so. I can meet the 25k down no problem but a 20% down payment for conventional financing is around 70k which I'll have shortly.  Comps today support the purchase price and purchase price is about 90% of market. I plan on refinancing in 6 mo after seasoning.

I see the risk of seller on title still..is there anything else I am missing? What are my options or alternatives?

@Maurice Clark I think that’s what challenging is knowing your numbers as a newbie.  I read The BOok on Estimating Rehab costs. I got multiple bids and acted as my own GC for 3 months.  There are extra costs and if your haven’t ever gotten bids are don’t really know construction it is really hard to estimate the unknown.  

@Steven Skinner yeah it has been rough but a terrific education. To clarify- the house was built in 1920 so most of my extra cost was replacing knob and tube and insulating the walls and attic to code. Other weird framing/foundation I didn’t understand starting out.  I hired a home inspector about 2 months in to get their take and made adjustments. I’m actually at 85k rehab but putting a great house back on the market to be loved by a family again. 

For our first flip my wife and I decided the deal need to meet the 70% rule or we weren't purchasing. We found a wholesaler on Craigslist that was offering at exactly 70% - repairs. The challenge for us in the puget sound area is I had to find a property about an hour south of Tacoma in a small town of Centralia Wa. It was 175k x .7= 122.5k - 65k est repairs so offers at 57k. We ended up purchasing for 49k due to a septic replacement. We are 98% done and our total rehab is going to be 90k with holding costs and taxes etc so WAY over budget. Luckily the market has picked up so ARV hasn't moved to 190k since August when we closed. If we didn't stick by that we could have put ourselves in a bad spot.