All Forum Posts by: Troy Cosentino

Hi @Bhakti Khandagale! I don't have the experience the other posters here do, but I just went through the same process and recently got short sale approval for a SFR in north Seattle that has a basement suitable for a ADU conversion. Like @Kyle Wells touched on, finding small multifamily was a bigger barrier for me than any of the other reasons. They are out there but definitely more scarce. Finding something you might be able to get creative with helped me find the 'diamond in the rough' properties when I ran numbers. Good luck in your search!

Also, @Michael Haas brought up Caliber Home Loans which I have worked with for my first two properties. I've gone through a mortgage broker, Home Trust Loans, and been very happy with the whole process. Not entirely sure the difference with working directly with the lender vs the broker, but thought I would second the recommendation!

Hey @M Shah nice to meet you! I'm just getting started but have closed on my first property near Gonzaga and plan to niche in student housing. One thing I really like about it is the limited market it presents. You can feasibly try to understand the entire rental market around a small school like Gonzaga and to me that has value. 

Regarding the discussion on leases, I plan to have a whole house lease that each student (and parent co-sign) is a part of. From what I understand, this should give enough people to 'go after' in the case of no payment.

Always happy to connect and talk about what I have learned so far! If you are considering anything in Spokane we might be able to be of some use to each other.

Have a great New Year!

@Sean Thompson Thank you! And yeah definitely PM me, I'd be happy to chat. I love the goal, you're making me think I need to be more ambitious 😅

@Jonathan McKay it is a single family rental that I am working through the BRRRR process with. Still working through the rehab process, but should be on schedule to attract students for the 21-22 school year. Long story short, still building that experience portion!

Hi Sean!

I'm in a similar boat just getting started out in Spokane and looking forward to post-Covid networking in the area.

I just purchased my first property here in the GU district and somewhat lucked into the off market deal. You mention having some strong contacts here, I'd recommend putting the word out about what you are trying to do with some of those contacts and see if you might be able to luck into a deal through that network. 

Speaking of which, what is your goal and what type of property are you looking for?

@Ryan D. Yes exactly. 5 year goal is to build a portfolio in Spokane, niche in student housing and then consider my options from there. While learning more and keeping an eye on Covid, I decided that if the numbers work it might be a good idea to start with a house hack locally (I generally live in Seattle, currently at the house in Spokane) and see what happens with Covid and students over the next several months. Like everyone says, once you start putting goals out there to people opportunities can start to come up and thus, here I am. 

The timing thing is a good point, and obviously it doesn't become a problem if the bank never approves. When the first extension came through I definitely had no issue with it. Now that we are into two holiday weeks, another extension is probably likely. Also a good point about there being no need to rush any of the work on the second house. Even if it rents lower, it would be worth taking the 'hit' vs not having it at all.

I'll definitely keep you posted. I really appreciate the thought out answer and encouragement!

@Kris Gerhardt Thank you much appreciated. Yeah I would say I am moderately confident in the numbers haha. I've done plenty of my own research and done comps with my agent. Until I get some under my own belt I'll probably be a little wary still though.

Hello all, looking for some advice on what options I might have.

About three months ago I made an offer on a short sale that was accepted by the owner and has been in the short sale approval process since then. The original deadline was Dec 4 but has been extended through the end of the year. 

The property would be a house hack/brrr in North Seattle where I would convert the basement to an ADU (1/1) and live there while renting the remainder of the house (4/2.25). My offer is at 505k, and based on sales in the area I think the value is closer to 650k in its current condition. I'd be putting 5% down for an owner occupied loan and do a lipstick type remodel plus the ADU conversion and target a 750-775k reappraisal.

Somewhere along the way, I was approached by a friend with an opportunity to buy his rental in Spokane (5 hours across the state) off market for a pretty good deal (155k). I partnered with a different friend and have closed on this house and started getting it ready to rent. Going great, just early in the process so far. 

So my question now is what to do about the original house. I have two potential issues that I am thinking about. (1) While definitely doable, money will be tighter than I would like and would likely play into renovation budget and potentially ARV. (2) The timing isn't great. I will still be finishing up the first house when closing on the second, and being across the state makes that a little tougher. Also just in terms of getting started I am jumping in pretty quickly with two houses.

My question then is are those concerns worth powering through, being a little uncomfortable for the year and learning a lot? Or would it be better to slow down by either getting out of the short sale or _____? And what would blank be?

Hi Elise! Thank you and that does make sense. I'm not trying to be shady but do want to take advantage of any options I have. I currently work from home and plan to do some renovation myself, so was thinking of living there through that and then figuring out what my options would be after that.

I have a meeting this week with a lender and plan to discuss with them pretty openly -- fully expecting the same answer but I've got to ask 😅

Hello!

I am in the process of evaluating different financing options and am having trouble understanding the rules for owner occupied loans. I plan on buying a buy-and-hold single family rental that will need some work, optimally a basement that needs finishing. The home will be my first home purchase, so I have been looking into some of the options or benefits for first time homebuyers. A local credit union offers a rebate covering 2% of a down payment which would allow me to get in for 1% with the stipulation that the "property be your primary residence with the intention of staying in the property for three years or more".

My question is, given this type of requirement what options would I (legally) have here and what qualifies as a primary residence? Could I sublet 5 of the 6 bedrooms and then rent a secondary apartment to live in myself? Is it more about my physical presence or my financial priority?

With a standard owner occupied mortgage I know 12 months is the requirement and have been comparing the trade off of having a lower down payment but holding the property for a year before being able to rent it. For the monthly carrying costs I am accounting for PITI and any PMI I'd be carrying. What else do I need to be thinking about in that (for example) 9 month gap?

Thank you for any tips!