Rental Property Help- Spokane

20 Replies

I am looking to purchase a duplex in Spokane WA. This will be my first property. I live in Seattle and I am finding the market to rich. Not looking for appreciation as much as cash flow. Any local investors know any good real estate agents. Also any other thoughts or ideas!

Thanks,

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I am looking for an investment property. Multiple Family has leverage in one property, one mortgage, etc. traditional financing. I have been looking west Washington- auburn, Snomish county, Tacoma. Spokane had some good price points for me and ROI but I am open to other thoughts. My idea is to start with 1 property this year and add 2-3 next 2 years would def. want to partner with someone as I like partnerships. Putting 20 percent down and getting cash flow would be what I want to do for my first investment property.

  Hello and welcome to BP!  You are doing good by asking for a referral.  Getting the knowledge and advice from an Agent is good. They can also help you sell to free you up on more income productive things.  Do not try to do everything yourself.  Marketing is one of the main things you have to do to get your phone to ring from leads.  Searching for leads is important to focus on.  You can meet Agent from loop net.com to find Agents and to meet them and be on their list about private listings to get good deals in your market before they are made public.  Just pick a market(s) that you know about and it's best locations.  

Always do your math analysis and try to look at the subject property before you make an offer on it or at least have a clause in the sales contract to give you some up-front time (usually 15 days) to look or Inpector the property and possibly back out of the deal without a penalty that exceeds your earnest money amount.  Also, in the salas contract it is good to have your name as the buyer and "or Assigns" included so you can transfer or assign it before you close.  Just make sure the market you choose is economically divers and has a growing population.

I an 59 years old and I found BP about 11 months ago and I am still deciding what to do while I medically recover. I went to college, not that it is mandatory, and I got a business degree that emphasized real estate.  Since I was in Texas and planned on staying there I found out that I was qualified to take a broker test so I took it and got a license.  I kept that license for about 30 years.  I did a few deals for other people and have only done one investment deal for myself.  Regardless of what I had I felt more comfortable with the construction business.  I have bee not in the construction business since I was 17 including those college years.  If you think I can help you please contact me through BP at any time.  Good luck to you!

Welcome to BP @Tripp Jarden I think Spokane is a great area to invest in, there are quite a few multi families on the market right now and more and more everyday. Since you are out of the area, I certainly think you are doing the right thing by looking for referrals that know the market you want to invest in. I have been working with @Deric Lamphiear for a realtor who I found here on BP and he has been a great asset to us so far. I wish you the best of luck and if theres anything I can help with let me know.

I'm originally from the Seattle area and moved to Texas to get away from the high real estate prices. I was talking to another investor the other day and they suggested looking in smaller towns with colleges so you are on the right track. Ellensburg, Bellingham, an Wallla Walla come to mind as well. But I've been out of Wa a long time.

Depending on your availability and thoughts, you might consider a property that needs to be rehabbed to get screaming deal? You can then manage the contractors that perform the work, when done, refinance into a Fannie / Freddie 30 year fixed no MI, and cash flow all the way to the bank and then some? BRRRR. Its a great strategy and can put you in a very good position on the property when done correctly and often.

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Hi all, 

Did anyone have any luck with finding a good contractor in Spokane?  Or any luck with estimating remodel costs ($/sq ft) in that market?

thanks in advance!

-Ben

@Tripp Jarden while Spokane properties are cheaper than King County be sure to get to know the areas.  There are some low prices, but they are in areas I'm not prepared to invest in.  

I'm just starting so take this for what it is worth. I've been doing my comparison's of price vs rent and many of the properties don't make sense from point.  Also, I've talked to local investors who say the appreciation in Spokane isn't very good so it has to make sense from a cash flow point of view.

Someone with experience in the Spokane market may come along and contradict what I've said and I would welcome that point of view and will learn from them.

I found both good and bad during my latest triplex rehab in Spokane.  I also learned some good lessons about trying to be my own GC. . . 

Anyone who would like referrals to various contractors, subs, or realtors can PM me.

I've worked with a few realtors recently, so I'm happy to share strengths/weaknesses of each and make introductions.

@Dan Mann Have you been on the south hill lately? My wife and I just laugh when we look at the prices of some of our neighbors' homes we see going on the market right now.  But. . .they seem to be selling.

Everything is still way lower than the west side, but certain pockets right now are HARD to find great deals in.

And to your point, it'll be important to work with a local realtor.  If you live in Seattle, it's easy to hop on Zillow and start drooling at homes in the $40-60K range. But know that they're priced that way for a reason. A block or two makes a big difference in some of our neighborhoods.

@Ben Freeburg no matter what market you're in the rehab cost per sf is going to be different on the quality of material you use and the contractor/timeline you're trying to set.  Granite vs laminate countertops and a full gut vs painting over old cabinets is going to skew your $/sf in any situation.  I'm setting a budget on a flip in the Valley currently that's going to run $35.70/sf for a full gut and landscaping - now whether that means we have a gazebo with hot tub and a sauna room out back afterwards depends on how well I work my budget.  Just set one from the get-go and attempt to stay within the bounds and save a little cash for unforeseen things should they arise.

Hi @Scott Ellis I'd be interested if you had any good contractor/project managers that you like in Spokane. I have a 1-2 introductions in the works, but could always use a few more good connections!  One thing I'm really interested in though, is any good banks that also act as portfolio lenders.  Did you have any in mind that you have worked with?  Thanks in advance!

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