All Forum Posts by: Timothy Javins

I've pulled both the probate cases and the code violations myself at the King County Courthouse. I can help you out.

Thanks, @BrandonTurner. That's a great idea.

@Tony K., I have a live feed of cash purchases in King and Snohomish. I'll hook you up.

Mark Ferguson
It's not that the whole block is for sale and mine's cheapest. Actually, none of the houses on the block are for sale except mine. The comps are not on the block; they're just nearby.

Your "$3K less" statement is not accurate. The sale price is equal to the lowest comp I've provided.

And you'll notice that half the comps I've provided were short-sale/REO. There are not a lot of retail sales for a 2/1 in this area within the last 6 months. To aid in understanding the pricing in the area, I've provided the ones that are most relevant, including 3 retail and 3 REO/Short-Sale, all of which have a garage as mine does.

Are you considering this property for your own [out-of-state] portfolio?

Alright, guys, this is my first post in the BP Marketplace. Let the questions and critiques fly! I know that's how y'all work. :)

Real Property:
5711 E M St
Tacoma, WA 98404

I AM GUARANTEEING THE RENT and it has EQUITY (pending official appraisal).

SEE THE ANALYSIS AND COMPS.

It has a positive cash flow and it's $40K cheaper than all the other houses on the block.

This is REO pricing, but it's not REO nor a short sale.

Currently rented. Awaiting signature on new lease agreement.
Tenant pays all utilities, pending new lease.

Simple analysis: https://www.dropbox.com/s/8gnxixwvr3e1192/Rental%20Property%20Analysis%20%285711%20E%20M%20St%2098404%29.pdf

Photos: https://www.dropbox.com/sh/7w8cjzfy0rlfisl/8rlkpTX94O

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ACTIVE
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1014 E 56th St #East 98404 -- RETAIL, 11 days old
VERY SIMILAR to subject prop. (except that this might be a duplex since it's called "unit East")
2/1 with garage
832 sq ft / 5,898 lot
For sale at $109,900

5408 E Portland Ave 98404 -- SHORT SALE, 97 days
2/1 with garage
898 sq. ft. / 7,020 lot
For sale at $95,000

712 E 52nd St 98404 -- RETAIL, 30 days old
2/1 with garage and unfinished basement
892 sq ft / 5,998 lot
For sale at $119,900

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SOLD
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824 E 57th St 98404 -- RETAIL
2/1 with garage
960 sq ft / 6,000 lot
Sold 05/15/2013 for $103,000

5116 McKinley Ave 98404 -- REO
2/1 with garage
888 sq ft / 4,996 lot
Sold 05/29/2013 for $92,750

1031 E 54th St 98404 -- SHORT SALE
2/1 with garage
762 sq ft / 6,000 lot
Sold 02/04/2013 for $85,000

Here ya go, Ivan: http://www.dol.wa.gov/business/realestate/brokers.html

I signed up for an online class and the testing site is H&R Block. Easy.

Put some time in and *BOOM* -- real estate broker license. Look for an office to hang your license in that doesn't have min. quotas and doesn't take a split of your commissions. For example, Heaton Dainard charges a $250 desk fee and only a flat $250 for each transaction.

Ivan Roberts Yes, REAPS is the big one. They meet in Bellevue for the large gathering and have smaller gatherings in each locale. REIA is the other one: http://www.reiawa.org.

Jon Holdman Thanks for your critique. Where did that 46% figure come from? I can't seem to match it by running any relevant numbers.

Jon and Zach Schwarzmiller, my calculator is interesting in that it only takes the 10% vacancy allowance for six months and then quits. So the monthly figure has a cashflow of $19.61, but it puts out $1015.33 annually since the second half of the year does not take vacancy allowance. It basically only covers one month of PITI per year. Is that a bad idea?

To both of you, thank you so much for your input. It's members like you that make this forum function. :)

You'll be able to add in 2 beds and rehab the rest for just $20K?

Other costs to consider:
- vacancy allowance
- advertising and legal
- management
- property taxes

Other measures of the investment:
+ cash-on-cash return
+ appreciation
+ cap rate
+ LTV

As long as your numbers check out:
Looks ultra tight as a rehab. Definitely rental. It looks like a good choice for a rental. I'd do it, if I did rentals.

I hope you have your corporations in place with everything structured to minimize tax and other liabilities and maximize asset protection.

David Fritch, I'm from Yakima! But I live in Seattle now - Shoreline.

Welcome!

P.S. Hey, Jeff S.!

Yes, a trust.

You have to consider and establish layered asset protection, minimized tax liability, transferability (avoid probate in case of death), etc. Ideally, there will be multiple corporations of different types involved (that you set up) and a clean tie into a living trust.

Can we make suggestions for attorneys here? I know of two that address all of this and more.