2% rule in WA area

[Rudy Manna]

We hear a lot about 2% rule. Is it even remotely possible anywhere in WA. I am searching the markets in Southside of Seattle (Tacoma, Puyallup, etc.), its a fight to get even 1% rule work.

Thoughts? Does the rule work in other parts of the country?

[Shawn Coverdell]

Another Tweekerville investor,

Longview and Kelso are Very hands on areas. Profits are decent but come with a price. You better know how to deal with 2nd and 3rd generation welfare mentalities. That is not just a political term you read about in the papers. It is very real and takes a very HIGH level of patience and restraint to deal with a tenant of that sort. If you can get over that aspect, this area can be rewarding.

40 year olds riding BMX bikes with makeshift trailers in tow looking for any tools that an unsuspecting landlord might have left unattended. This is a trademark of the Highlands area. There are also some very decent neighborhoods in Longview, but I have not yet found one that pencils out for me. 

We use Sharp Property Management. They have experience dealing with this sort of environment and seem to do pretty good.

In a little over 3 years, we have yet to miss a rent payment (only 2 units on HUD), and not much turn over. Still have most of our original tenants. We go a little above and beyond on our rehabs because we do our own work and just like that sort of thing.

Overall, I really believe there is an art to investing in these areas, things can change dramatically from one block to the next. You will need to walk the area on Fri/sat night. after midnight to see what's really going on.

last purchase 3/1 SFH 62K, 5K to rehab. Rented for 995.00 received several applications to choose from.

We did find a single 2 percent (close to it ) deal last year. but it was a destroyed duplex. bought on online auction for 54K, 20K rehab. 3 months sweat and swear words (evening and weekends, 2 weeks vacation from day job, etc...). Rented for 700/700 tenants pay own water because 5K of the rehab funds went towards adding a 2nd meter for individual water service. Water is a big issue/drama in Longview.

Housing prices are bloated right now. so just shoot for over 1% and your fine for now. Position yourself for the next housing panic. 

Meet ya'll at the clearance rack!  :)