All Forum Posts by: Tyler Smith

@Terrell Garren absolutely, obviously I'll have to do my due diligence and find a strong PM. But with some good relationships I feel like I can make this work. Thanks!

@Jay Hinrichs thanks for the reply! My first instinct was to try look over in Eastern Washington but I still feel like the price points and rental rates are better in more of the midwestern cities. In a states like Missouri, Nebraska and South Dakota I found much higher supply of SFR right around $100k in what seemed to be B neighborhoods, obviously I need to do a little more research but this definitely got my mind rolling!

My whole goal is to have a small group of rentals that can give me passive income for the rest of my life. I live and work a little north of Seattle where essentially homes start at $350k and the 1% rule doesn't really exist, in most cases rents would be less than what my mortgage would be. If I wanted to do any sort of BRRRR, House Hack or Live-In-Flip (which I was planning on doing) I would have to move 2 counties away which would make my commute 2+ hours. In no way am I saying investing in Seattle is impossible, but with my current situation it doesn't seem to make sense. So my question is, are turnkey rentals from a reputable company something that would be a good idea? I understand this is an extremely passive way to invest, but with my main goal being steady cash flow the numbers seem to be much more attractive than anything I can find in Seattle. Any thoughts??

I'm looking to do a live in flip and I'm concerned that a 1 Bed house might eliminate one of my exit strategies after the flip. I want to be able to either sell, rent/refinance or just refinance and use it as a primary residence. The house is really cheap compared to comps but doesn't seem to need a whole lot of work. I'm wondering if the price reflects the fact that 1 Bed houses may be difficult to rent/sell. Anybody with experience or insight please help!! Thank you

If you don't mind going down south a little, Pierce County is way more reasonable than King/Snohomish. I'm currently looking for a live-in-flip down in some of the nicer parts of Tacoma and I've found more than reasonable prices. Good Luck!

Has anybody applied the BRRRR strategy with a townhome or condo? There are way more in my price range and in running the numbers I can get way closer to the 1% rule with a townhome or condo in the Seattle area than I can with a SFR, with that said I know the HOA can change their dues and rules at will which can totally make or break an investment. But I'm guessing things like capx would be much lower due to the fact that the HOA covers the big expenses? I would love to hear from somebody who has experience with something like this!

(with rehab I mainly mean update. Floors, appliances, cabinets ect..)

@Teri Feeney Styers My goal is to find a property that doesn't need such complex repairs. Something that would fit my skill set and budget so I wouldn't have to borrow the down payment. Of course down the road if this is something that works out and I enjoy it I would be all for looking into more complex flip, but as I get started I would hate to bite off more than I can chew. Thank you for your help!!

@Teri Feeney Styers I defintely expected some limitations with a 203k loan but I'm glad to hear it is actually possible. In your experience, would a smaller local credit union or bank be more likely to loan to a first time homebuyer seeking this type of property? Also when you say more complex flips are you referring to the actual cost of the flip? Like I may have more luck with a property needing $20k in repairs as opposed to a property needing say $50k or more. Thank you!

@Chris Baber I appreciate your insight! I didn't think about having to get bids from a licensed contractor. To me that sort of defeats the entire purpose of a live in flip, but I will have to look into that. I've definitely considered some type of hard money, although my thinking was to use a FHA or conventional for that matter to leave myself with 2 exit strategies after the rehab. Either selling or refinancing then renting depending on the numbers/market at that time.

@Aaron K. Thank you that is helpful. So I could still use the bigger pockets House Flipping Calculator and just input the terms as we plan to hold the property for at least 2 years. Would it be safe to subtract the amount we would be saving in rent each month by living in the property? I.e if we would be saving say $1,500 a month in rent over the course of 2 years could use that extra $36,000 in our analysis?