All Forum Posts by: Eric B.

or any premium for sheetrock versus drop?

i just did similar renos on my and my patents places.  Drop ceilings are nice for areas you need access to.  I just made a closet with a removable sheetrock ceiling for access.  But here is the thing: noise.  For separate units here in the Seattle market I would do z channel or bi metal sound isolators fill the cavities with fiberglass insulation and use 5/8" sheet rock.  But rents around here can easily cover that.  You didn't mention numbers do you think there is a rent perimium for Sheetrock or sounddeadening?

Great write up.  Its awesome to see people getting it done in their own towns.  Those ranches shine when you are done!  Your improving your town one house at a time.  Nice work!

People keep mentioning the tax advantages of real estate and asking me about how that must be a huge benefit to my family.  I also just read a whole book about tax "loopholes" (written in 2005 by the way). That was really about taking losses and using it to offset income and using depreciation.  Now i'm not going to lie I did learn a few things but I'm not sure that I will ever use them! Why?

Because my tax strategy can be summed up like this:  MAKE SURE TO PAY JUST ENOUGH TAX FROM THE MOUNTAIN OF MONEY THAT MY PROPERTIES GENERATE THAT I DONT GET FINED IN APRIL.  DONE.

If you are tempted to own real estate for tax loss harvesting or for tax advantages only......... QUIT.  NOW.

Thanks for letting me blow off some steam!!!!

Happy New Year!!!!!

Our home is in a way nicer neighborhood and schools but it's a large 1961 builder modern that we purchased from the original owners estate.  It needs a ton of work and had allot of original unfinished space.  Original appliances layout ect.  Our rentals are finished much nicer but much smaller.  So you could say it's a mixed bag.  But I definitely hop to tenant repairs fast as they are my customer(s).  Whereas around here the customer is fairly forgiving and things get done when they get done.  Ultimately every time I think about a new counter or something like that I first weigh how much increased rent I could receive if I upgraded the counters in my rental(s) first.  value of the upgrade = increased annual rent/discount rate

new counters could bring a yearly rent increase of $1200/.1 discount rate=$12,000 value =  DO IT!  even if counters cost you $6000  you've doubled your money (don't run out and spend $6000 on counters please).

No way.  Doesn't pass the sniff test.  Rent and if you still want to do this when you graduate find a better area.  Why do they want their money out?  High vacancy, market rents are maxed out, upcomming maintence? All of the above?  Investors dont give big discounts any more or less than normal people, perhaps less as they can fixate on numbers and return.  There are better opportunities out there.  I suggest pass.

ummmm........what does it cost?  Diddo what Nathan is saying.  If you are going to live there then subtract out that room expense and your portion of utilities.  So from what you have said you should pay no more than 100k to 200k depending on what you find out about the expenses and anticipated upkeep expenses in the next 5 years.  If it is more than this just forget it.  If it is in this range then it warrants more investigation.  If it is less than this then something is weird and proceed with extreme caution.

@Chanté Owens Just had an idea.  Why dont you month to month out of the area then sign a lease in your desired area when you find the right place/price?  I have a college rental that I cant rent untill june and would love to find aomeone like you for a month to month.  Mine is way out of your area but you could look for something similar in the U district...Just a thought.

Good Luck!

Search and search and look for someone advertizing eairly.  You might consider paying rent in two places for a month or two.  Be careful you dont want to lead landlords on: be ready to tell them your best movein date.

Ilwaco. Jay how can you not remember the metropolitan Ilwaco area!  :)