New member from the Seattle area

16 Replies

Hello everyone,

My name is Ray -- I currently am located in Kent, WA just outside of Seattle working in the tech and aerospace field. I'm originally from Everett, WA and enjoy learning and trying new things like real estate, new technologies like blockchain and data science, and anything aerospace like rockets, planes, etc.

As far as real estate experience goes, I've worked on a couple of flips in Eastern Washington doing renovations with a couple business partners and it has reminded me of how much I enjoy working with my hands! The main reason I am interested in real estate is the flexibility it has and potential as well -- currently I am mainly interested in house hacking in the next couple of months/years and learning as much as I can. I've mainly joined BiggerPockets to learn from you all here and take my first steps by building education first -- most likely as a house hack to start. If anyone has any resources they are willing to share, I would be eternally grateful -- been reading all I can and learning as much as I can! 

Feel free to reach out - always interested in meeting new people. Thanks again and looking forward to meeting everyone! 

Cheers,

Ray

Originally posted by @Ray Parker :

Hello everyone,

My name is Ray -- I currently am located in Kent, WA just outside of Seattle working in the tech and aerospace field. I'm originally from Everett, WA and enjoy learning and trying new things like real estate, new technologies like blockchain and data science, and anything aerospace like rockets, planes, etc.

As far as real estate experience goes, I've worked on a couple of flips in Eastern Washington doing renovations with a couple business partners and it has reminded me of how much I enjoy working with my hands! The main reason I am interested in real estate is the flexibility it has and potential as well -- currently I am mainly interested in house hacking in the next couple of months/years and learning as much as I can. I've mainly joined BiggerPockets to learn from you all here and take my first steps by building education first -- most likely as a house hack to start. If anyone has any resources they are willing to share, I would be eternally grateful -- been reading all I can and learning as much as I can! 

Feel free to reach out - always interested in meeting new people. Thanks again and looking forward to meeting everyone! 

Cheers, Ray

Hi Ray, welcome. I'm from Seattle and I've invested in King Co, Sno Co, and Pierce Co mostly but also Spokane, Vancouver, Longview, Tri Cities, Yakima and Wenatchee, heck just about everywhere, even Walla Walla Washington, the city so nice they named it twice.

After careful consideration and a lot of looking, we decided that Arizona had much better return for our effort and we have found that to be true. My advice, make money where you are, invest where you can be profitable. That may mean invest out of state.

Hi Mike, nice to meet you! That's totally fair. I've been doing work out in Wenatchee for some specialized data center applications which has been interesting -- obviously boutique but still a fun time! That's totally fair and that is my general consensus as well from my information gathering -- get out of King County if possible... unfortunately rooted there however due to work, family and whatnot, which is why house hacking is probably in my future -- just enough to break even or so is the hope (maybe even go with subsidized/lowered cost of living, etc.) I appreciate the advice! 

Do you think it's worth trying since I don't plan on leaving in the foreseeable future? 

----

Hi Ruth, thank you for reaching out! I'll be sure to respond! 

Hi Mike, nice to meet you! That's totally fair. I've been doing work out in Wenatchee for some specialized data center applications which has been interesting -- obviously boutique but still a fun time! That's totally fair and that is my general consensus as well from my information gathering -- get out of King County if possible... unfortunately rooted there however due to work, family and whatnot, which is why house hacking is probably in my future -- just enough to break even or so is the hope (maybe even go with subsidized/lowered cost of living, etc.) I appreciate the advice!

Do you think it's worth trying since I don't plan on leaving in the foreseeable future?

----

Hi Ruth, thank you for reaching out! I'll be sure to respond!



---------------
Originally posted by @Account Closed :
Originally posted by @Ray Parker:

Hello everyone,

My name is Ray -- I currently am located in Kent, WA just outside of Seattle working in the tech and aerospace field. I'm originally from Everett, WA and enjoy learning and trying new things like real estate, new technologies like blockchain and data science, and anything aerospace like rockets, planes, etc.

As far as real estate experience goes, I've worked on a couple of flips in Eastern Washington doing renovations with a couple business partners and it has reminded me of how much I enjoy working with my hands! The main reason I am interested in real estate is the flexibility it has and potential as well -- currently I am mainly interested in house hacking in the next couple of months/years and learning as much as I can. I've mainly joined BiggerPockets to learn from you all here and take my first steps by building education first -- most likely as a house hack to start. If anyone has any resources they are willing to share, I would be eternally grateful -- been reading all I can and learning as much as I can! 

Feel free to reach out - always interested in meeting new people. Thanks again and looking forward to meeting everyone! 

Cheers, Ray

Hi Ray, welcome. I'm from Seattle and I've invested in King Co, Sno Co, and Pierce Co mostly but also Spokane, Vancouver, Longview, Tri Cities, Yakima and Wenatchee, heck just about everywhere, even Walla Walla Washington, the city so nice they named it twice.

After careful consideration and a lot of looking, we decided that Arizona had much better return for our effort and we have found that to be true. My advice, make money where you are, invest where you can be profitable. That may mean invest out of state.

Originally posted by @Aaron Belt :

Hi @Ray Parker and welcome to Bigger Pockets! Bigger Pockets is a great place to start for real estate investing. Bigger Pockets is the place to get deals done the right way! Congratulations, and I wish you nothing but success.

 Hey Aaron, thank you -- I appreciate it! If you have any resources that helped you get started, I would be interested in checking them out! Thank you for your help! 

@Ray Parker

Welcome to the BP family! Good to have you here!

Here are some recommendations for you:

Find and connect with other BP members that are in your area: https://www.biggerpockets.com/search/users

Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts

Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing

Check out BP Podcasts: https://www.biggerpockets.com/podcast

If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box. He or she will be notified of being tagged so that the conversation will continue.

Wishing you the best!

Hi @Ray Parker ,

Welcome to BP and house hacking seems like a very safe way to start.  If you can get into a 4 bedroom house (2.5 Bath) and rent out 3 of them that is what I would recommend as long as it fits your lifestyle.  I also recommend doing this in the location you live in to start out as you are better aware of all the variables.  Stay conservative to start with projections and the risk you are taking.  Pick good locations that cater to the better schools (and decent freeway access) if you are doing single family.  If that goes well and the house is cashflowing (which if it doesn't don't do it) then move onto the next house assuming you can build up another downpayment relatively soon.  Unlike rocket science and data science, real estate investing is very simple as the math formula to be sucessful is very simple.  Learn to calculate a cap rate and understand the replacement cost of the single family house you are buying (or other property).  Pay attention to other common sense factors that may not show up in the math as well.

Originally posted by @Dmitriy Fomichenko :

@Ray Parker

Welcome to the BP family! Good to have you here!

Here are some recommendations for you:

Find and connect with other BP members that are in your area: https://www.biggerpockets.com/search/users

Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts

Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing

Check out BP Podcasts: https://www.biggerpockets.com/podcast

If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box. He or she will be notified of being tagged so that the conversation will continue.

Wishing you the best!

 Great links! Thank you Dmitriy, appreciate it! I've been consuming all the podcasts I can! :) Thank you!

Originally posted by @Uwe G. :

Hi @Ray Parker,

Welcome to BP and house hacking seems like a very safe way to start.  If you can get into a 4 bedroom house (2.5 Bath) and rent out 3 of them that is what I would recommend as long as it fits your lifestyle.  I also recommend doing this in the location you live in to start out as you are better aware of all the variables.  Stay conservative to start with projections and the risk you are taking.  Pick good locations that cater to the better schools (and decent freeway access) if you are doing single family.  If that goes well and the house is cashflowing (which if it doesn't don't do it) then move onto the next house assuming you can build up another downpayment relatively soon.  Unlike rocket science and data science, real estate investing is very simple as the math formula to be sucessful is very simple.  Learn to calculate a cap rate and understand the replacement cost of the single family house you are buying (or other property).  Pay attention to other common sense factors that may not show up in the math as well.

 Hi Uwe, thanks for your response -- good to know, thank you for the feedback and the tips. What you describes is pretty much what I am aiming for. Do you have any resources besides the tools here that you recommend using in order to analyze the deals -- like things to look for, items to consider, etc.? I've read through examples in the BP books, some of the webinars and such, but it's always good to get a bit more diverse examples/methods as well!

Hi @Ray Parker , I would make sure that either the elementary school or high school has good ratings.  You can view that on 
https://www.greatschools.org/.

The other thing I look at is the crime map and the median income.  Those will give you good indications of what is going on.  For example, in my area of Vancouver, WA.  I like Felida, Salmon Creek, and Ridgefield.  They have the highest median income in Clark County that is closest to I5 (and the entire county with exception to Camas by a couple thousand dollars) and they are all right next to each other.  Also, crime is low.  Schools pass the test as well for me.

I like to follow High School Sports to see how strong a community is.  What teams for girls and boys are making the state finals or quarter finals on a regular basis (Soccer, Basketball, Softball, Baseball, Volleyball, Football, etc..).  In my eyes that shows stronger parenting and community to make it so an entire team can compete together at a high level.  Not easy to do as it is a big time commitment for all involved.

Lastly, I like to make sure I am a short drive to an airport (less then 30 minutes) and have access to very good healthcare.  The healthcare part is two fold...it means lots of high paying and recession resistant jobs.  And also it is important to have good access to healthcare for our aging boomer population that are giving renting an option as they relocate to the area I am in.

Regarding resources, I would focus on the following:

1.  Making sure your debt costs are low.  If your debt cost (interest rate) is lower you can buy safer assets as you are getting started.  To me this is a big part of the "deal"  I like to do the boring 30 year fixed rate and lock in as low as possible.  If you don't have pristine credit, work to get a pristine credit score.  There are services that will help for $250 if you need help.

2. Learn how to use HELOCs for future use (will take several years if not more to get the equity). You can watch youtube videos on this. There are some that teach you how to pay off your mortgage in 5-7 years using HELOCs. Watch those to understand the idea of HELOCs and how you can use them. That strategy is up for debate if you want to use the paydown strategy but watch it for the HELOC part.

3.  Make sure before you buy a house you are going to live in, make sure it would rent on its own to completely cover your costs and put $100 to $200 in your pocket each month.  For speed, setup your own simple spreadsheet in MS Excel.  It doesn't need to be fancy and your data is private for the deals you analyze.  Make sure to include, payment, insurance, property tax, vacancy, maintenance fund, and property management.  For vacancy I would use a 5-10% of monthly rent for my monthly vacancy amount.  For maintenance I would use 10% of rent and Property Management use 8-10%.  

4. Focus on not losing money your first couple deals. What I mean by this is don't get too complicated with taking on a massive remodel or taking on a speculative area. Given your interests in engineering related disciplines I would focus on financial engineering concepts and financial efficiency. What I mean by this is if you can earn a 2% spread immediately (buy a 6% cap rate single family and borrow at 4%) with low risk that can be the same financial outcome as taking on a BRRR that takes 3-6 months to remodel with a budget that goes above your initial estimates and then takes another month to rent, etc...

Hope this additional information is of value as it is a little different flavor of what most people are doing.

Originally posted by @Ray Parker :

Hello everyone,

My name is Ray -- I currently am located in Kent, WA just outside of Seattle working in the tech and aerospace field. I'm originally from Everett, WA and enjoy learning and trying new things like real estate, new technologies like blockchain and data science, and anything aerospace like rockets, planes, etc.

As far as real estate experience goes, I've worked on a couple of flips in Eastern Washington doing renovations with a couple business partners and it has reminded me of how much I enjoy working with my hands! The main reason I am interested in real estate is the flexibility it has and potential as well -- currently I am mainly interested in house hacking in the next couple of months/years and learning as much as I can. I've mainly joined BiggerPockets to learn from you all here and take my first steps by building education first -- most likely as a house hack to start. If anyone has any resources they are willing to share, I would be eternally grateful -- been reading all I can and learning as much as I can! 

Feel free to reach out - always interested in meeting new people. Thanks again and looking forward to meeting everyone! 

Cheers,

Ray

 Welcome to the site Ray.

Welcome to BP! I am in Kitsap, Feel free to reach out anytime and we would love to have you come to a networking event we have several every month! Biggest advice anyone has given me is take small actions daily to move forward.

Originally posted by @Uwe G. :

Hi @Ray Parker, I would make sure that either the elementary school or high school has good ratings.  You can view that on 
https://www.greatschools.org/.

The other thing I look at is the crime map and the median income.  Those will give you good indications of what is going on.  For example, in my area of Vancouver, WA.  I like Felida, Salmon Creek, and Ridgefield.  They have the highest median income in Clark County that is closest to I5 (and the entire county with exception to Camas by a couple thousand dollars) and they are all right next to each other.  Also, crime is low.  Schools pass the test as well for me.

I like to follow High School Sports to see how strong a community is.  What teams for girls and boys are making the state finals or quarter finals on a regular basis (Soccer, Basketball, Softball, Baseball, Volleyball, Football, etc..).  In my eyes that shows stronger parenting and community to make it so an entire team can compete together at a high level.  Not easy to do as it is a big time commitment for all involved.

Lastly, I like to make sure I am a short drive to an airport (less then 30 minutes) and have access to very good healthcare.  The healthcare part is two fold...it means lots of high paying and recession resistant jobs.  And also it is important to have good access to healthcare for our aging boomer population that are giving renting an option as they relocate to the area I am in.

Regarding resources, I would focus on the following:

1.  Making sure your debt costs are low.  If your debt cost (interest rate) is lower you can buy safer assets as you are getting started.  To me this is a big part of the "deal"  I like to do the boring 30 year fixed rate and lock in as low as possible.  If you don't have pristine credit, work to get a pristine credit score.  There are services that will help for $250 if you need help.

2. Learn how to use HELOCs for future use (will take several years if not more to get the equity). You can watch youtube videos on this. There are some that teach you how to pay off your mortgage in 5-7 years using HELOCs. Watch those to understand the idea of HELOCs and how you can use them. That strategy is up for debate if you want to use the paydown strategy but watch it for the HELOC part.

3.  Make sure before you buy a house you are going to live in, make sure it would rent on its own to completely cover your costs and put $100 to $200 in your pocket each month.  For speed, setup your own simple spreadsheet in MS Excel.  It doesn't need to be fancy and your data is private for the deals you analyze.  Make sure to include, payment, insurance, property tax, vacancy, maintenance fund, and property management.  For vacancy I would use a 5-10% of monthly rent for my monthly vacancy amount.  For maintenance I would use 10% of rent and Property Management use 8-10%.  

4. Focus on not losing money your first couple deals. What I mean by this is don't get too complicated with taking on a massive remodel or taking on a speculative area. Given your interests in engineering related disciplines I would focus on financial engineering concepts and financial efficiency. What I mean by this is if you can earn a 2% spread immediately (buy a 6% cap rate single family and borrow at 4%) with low risk that can be the same financial outcome as taking on a BRRR that takes 3-6 months to remodel with a budget that goes above your initial estimates and then takes another month to rent, etc...

Hope this additional information is of value as it is a little different flavor of what most people are doing.

 Hi Uwe, thanks for the response. I appreciate you laying out how you look and evaluate properties -- appreciate that URL, will definitely take this down in my notes as well! Thank you! I have written down healthcare, airports, and schools as items I should keep an eye out for! 

1. Got it. Thank you -- shouldn't be too much of a problem but always good to have a reminder! 

2. Do you have links? I watched a couple on YouTube videos (like https://www.youtube.com/watch?v=FYNMtHSav34 and others), but just curious if you recommend any other Channels per se.

3. For sure -- so to summarize, if I do live in it, try to get $100 to $200 in income after all expenses are said in done each month. I've been trying to analyze some deals using the deal calculator and it seems to be harder to get positive cash flow (especially up here near Seattle). Should I just try to break even if I do live in? If I don't live in, it seems a bit easier however and the numbers seem to make a bit more sense. 

4. Appreciate the feedback -- I think I need to start getting more analysis tools -- do you have any recommendations? I've found the calculator here, I've tried making a spreadsheet via Google Docs, and a couple of other websites, like DealCheck, etc.

Thanks again Uwe! 

Originally posted by @James Wise :
Originally posted by @Ray Parker:

Hello everyone,

My name is Ray -- I currently am located in Kent, WA just outside of Seattle working in the tech and aerospace field. I'm originally from Everett, WA and enjoy learning and trying new things like real estate, new technologies like blockchain and data science, and anything aerospace like rockets, planes, etc.

As far as real estate experience goes, I've worked on a couple of flips in Eastern Washington doing renovations with a couple business partners and it has reminded me of how much I enjoy working with my hands! The main reason I am interested in real estate is the flexibility it has and potential as well -- currently I am mainly interested in house hacking in the next couple of months/years and learning as much as I can. I've mainly joined BiggerPockets to learn from you all here and take my first steps by building education first -- most likely as a house hack to start. If anyone has any resources they are willing to share, I would be eternally grateful -- been reading all I can and learning as much as I can! 

Feel free to reach out - always interested in meeting new people. Thanks again and looking forward to meeting everyone! 

Cheers,

Ray

 Welcome to the site Ray.

 Thanks James! Appreciate it! 

Originally posted by @Samuel Fletcher Hardy :

Welcome to BP! I am in Kitsap, Feel free to reach out anytime and we would love to have you come to a networking event we have several every month! Biggest advice anyone has given me is take small actions daily to move forward.

 Hey Samuel, thanks for reaching out! That sounds great -- I just attended a networking session last week and it was an awesome community -- Kitsap county is a bit far but can't hurt. Do you have any more information or a link to share? Thank you again!

And I definitely feel you. Small actions and small steps will add up -- gotta focus on the small things while keeping the bigger vision in mind :)

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