All Forum Posts by: Lane Kawaoka

I use IRS services which are good for low activity (notes) since the annual fee is low but you kinda get nickel-ed and dimes everytime you want to do a transaction.

Here are my theories:

1) People into TKs are not the do it yourself folk to be on BP. Sorry to say it but it might be a generational thing or the fact that they have better things to do (families) than troll forums. Frankly they are in the 2nd phase of living their life than stage 1 acquisition.

2) The 4+ loan hurdle becomes an issue with DTI and 6 months of cash reserves on all properties. A good loan person can over come this but it on barrier.

3) TK are embarrassed to post on the forums where the culture is filled with people who a busting their butt to make deals happen. Its like being the 8-hour a work dude in the office with 24/7 folks. The TK crowd get 80% of the gains with 1% of the effort.

@Account Closed  let connect

What is the cause? Any ideas?

Typical market cycles are 9-12 years long.  Probability says we are reaching a peak in the market... surely we have reached the midway point... this is why places are not cashflowing.  Now in Seattle specifically with the influx of Amazon we should see this uptrend continue but for how long.

In Seattle I am seeing sellers listing at 0.5% rent to value ratio (3000 monthly rent on a 600k MFH/SFH. This will not cashflow unless your are using a non-prudent amount of downpayment.

.7-.8 in Seattle. You might get 1% in White Centerish or High Point places.  I woulden't want to invest there.

A 50% is a good conservative rule for expenses. 

An A-,A property (w/10% Property Management) use 80% *freshly full rehab

An B,B+ property (w/10% Property Management) use 70% *freshly full rehab

An C,C+ property (w/10% Property Management) use 50-60% *freshly full rehab

Maybe your spouse can get 10 mortgages in their name.

I want to come to Kevin's rescue a little bit and just say that Seattle does not cash flow like most of the county but it definitely appreciates more. Appreciation is not as certain as CF but that may be Kevin's investment strategy.  I have the same type of rentals as Kevin that cashflow since they were bought at the right time but I am liking CF more thus I am on the Out of state bandwagon.

I did an analysis of 15-20 PMs in 2013 and found that 6-10% of months rents are typical (with 1/2 first months rent as a fee).  I suspect the 12% is the monthly fee plus the rent up fee annualized over the year.

A PM is also good 3rd party between yourself and a lawsuit.