All Forum Posts by: Tyler Todhunter

I PM'd you when you posted this, not sure if you got that message.  

Good call Josh, thanks!

I've made the switch to Monarch. I haven't dived too deep into it yet, but it seems like it may do the trick. One thing I haven't figured out yet is that it shows HELOC available credit as a balance (which you can set to be either positive or negative, either way is incorrect though). But, maybe that is just the way this particular lender integrates data...

Thanks for the tip, I'll check it out!

I was using Mint to track my personal finances, including real estate transactions and net worth, and found it really useful.  They shut it down and merged it over to Credit Karma, and it sucks.  I am trying to get things set up in 'wealthposition', and I don't think it's going to do what Mint did.  I found Mint valuable, so I'm not opposed to paying for a good platform.  Does anyone have any recommendations?  Thanks!

I bought my first investment property in Aberdeen in 2019, and I wish that at that time I was better positioned to buy more.  I have continued buying properties there and find it to be a market where you can still find deals that pencil out.  The golden rule of real estate is, of course, "location, location, location", and by many metrics, Aberdeen has a reputation as the armpit of Washington.  However- I think that this has (had) led to an artifically depressed housing market.  When I first started buying, it would be common to drive down any given street and every third house was a teardown.  As the real estate investment flurry occurred over the past 5 years, a lot of investors saw the opportunity and poured a lot of outside money into the town.  You can now drive down "cute" little streets and see many well cared for houses.  

The town that was once neglected is being revitalized.  I don't particularly think that the demographics have changed dramatically, but the once severely under market rents and values are slowly being brought up to what they, perhaps, always should have been (which is still at a dramatic discount from all other surrounding areas).  We also have the aspect introduced by the pandemic of people being able to work remotely.  If their option is to live in Seattle, where there job is, or to live in Aberdeen at a 50+% discount, if they can telecommute Aberdeen becomes an attractive option. 

Regarding homeless population, it definitely exists.  But, as someone who lives and works in the Seattle area, I can say that it is possibly less of an issue in Aberdeen.   The major employers in the area are found online and are stable industries.  It is (or was) designated as an "Opportunity Zone" which has potential to bring in outside money.  It has a large, underutilized port and railways for future development opportunities, but who knows if that will materialize.  

That's my 2 cents, and I'm sure there will be differing opinions presented.  

As mentioned above, whether or not it is a good deal will depend on the numbers, which we don't have in this thread.  You will also need to have your financing lined up- Without a history as a landlord, you may have to qualify based solely on your income, and have the required down payment.  You will want to get copies of the leases as they can make or break a deal (and you may not be able to purchase as an owner occupant if the tenants have leases).  I, also, would recommend a RE agent, even if you have to pay their commission out of your pocket.  The potential cost of missing something that an agent would catch can outweigh that cost significantly.  

I own several rentals in Aberdeen and it is a good market.  There are some things to watch out for in the area that a RE agent will also know to spot.  I can't recall if multifamily zoning allows short term rentals, so you will need to confirm that.  

Feel free to PM me if you like.  

Thanks Russell.  I think the key takeaway you mentioned is "thinking".  I have subscribed to the "buy real estate and wait" theory and I know that in the long run, it is statistically right.  However, you rarely hear anyone claiming that they made a killing buying in 2006/7, but rather 2008-2011.  Again, in the long run, those who bought in 2006 are most likely still up today, but there were years of pain involved to get here.  

I may be a little sensitive to this as my dad lost 50 rental units during the inflation of the 80's.  Those properties would be worth a fortune today, but it cost my family a fortune to lose it all.  There are things that I would have done differently, but I want to think through the process to fully understand the mechanics of my investment. 

Hi all,

I am a small investor, currently with (2) 4-plexes and a SFR. I am lining my finances up to be able to purchase something larger, but with yesterdays Fed rate hike, I have a concern with commercial multifamily investing. As rates rise, investors want a higher rate of return- typically. By layman's logic, this would cause CAP rates to rise. With commercial properties priced according to CAP rates, is one setting themselves up for a losing proposition? A property purchased with a $100k NOI at a 5% CAP puts the price at $2,000,000 acquisition. If investors, in a year, demand a 6% CAP, value of the property would reduce to $1.66m for a loss of $333k. Of course, rents theoretically would increase with inflation to, perhaps, $110,000- this would still result in a loss of $167k.

CBRE is showing CAP rates trending down, at least through Q4 2021- which seems counterintuitive. Are there more market forces at play which may keep CAP rates at or around where they are currently? Or is it wise to wait for increased CAP rates to put money to better use?

I'm interested to hear your thoughts in these "unprecedented" times. “History doesn't repeat itself, but it does rhyme.” - Mark Twain

St. Patrick's day! Not a good night for me, but let me know of future events!