New Investor from Marysville Washington

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New Investor from Marysville Washington

Kathy Sanders
Marysville, WA · Member since 2013 · 3 posts · 0 votes

I just joined BP after my son raved about all the knowledgeable and helpful folks out there willing to provide input! We have been buying/selling/holding SFR's and duplexes for about 15 years and have decided to shift our focus to the multi-family world.
My husband and I are at the tail end of our day-job careers while our son is just beginning his. Our plan is to grow our family-owned business into one that can ultimately replace all of our ‘jobs’.
Looking forward to learning more about everything BP have to offer and welcome any questions that we might be able to answer on topics such as foreclosures, flipping or managing SFR’s.

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    13y

    Hi Kathy and welcome to BP!

    What size of MF are you looking to go after with your transition??

    Tons of info on here.

    Podcast Guest on Show #47
    NNN Invest53 Reviews
    WebsiteView Page
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  • Kathy Sanders
    OP
    Marysville, WA · Member since 2013 · 3 posts · 0 votes
    13y

    We are thinking 20-50 units for our first transaction and then increase to bigger.
    Thanks for the quick response!

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    13y

    Hi Kathy,

    How much time you have to devote to the property will make a big difference. Typically I as an investor and also my commercial clients do not look at anything below a 50 unit. At a certain threshold and sales price there are many more commercial lenders competing for loan with the best rates.

    Also the infrastructure comes into play with having a full time maintenance person and property manager on staff. At 50 units usually you can negotiate a 5 to 6% management fee. A lot will have to do with the area it is in and tenant base type and how heavy collections will be getting the total rent every month.

    A full time maintenance person can turn the units much faster knowing all the nooks and crannies as well as all of the mechanical systems etc.

    If you go smaller say 20 or 30 units you run into having to call someone every time there is an issue with the property which can get expensive and you also delay repairs that turn into high dollar repairs instead of small things fixed right away.

    Podcast Guest on Show #47
    NNN Invest53 Reviews
    WebsiteView Page
    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    13y

    A maintenance person that is not getting enough income from one property to survive will have divided interest among other jobs and performance and timeliness of repairs will tend to be inconsistent.

    I have been through this as an owner myself. You live and you learn. I can no longer buy anything that could become a job. I am busy transacting for clients and so I have to have the investment perform on it's own without my constant direct involvement. Even if you want to self manage to learn on a bigger unit complex you need to factor in PM costs when you buy. Later down the road on resale a buyer will and you also might get tired of being a PM and then hire someone. If you didn't plan on that cost going in your returns will be severely affected. The PM work doing yourself is still costing you time which you are trading for saved money.

    To me it is not saved if I am doing 10 per hour work but making hundreds of dollars per hour doing other activities. In that case I am losing money.

    Podcast Guest on Show #47
    NNN Invest53 Reviews
    WebsiteView Page
    0Reply
  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    13y

    Hey Kathy Sanders welcome to BiggerPockets! I am also in Washington (over near Aberdeen) and also love multifamily properties. I bought a 24 unit a few years back and love it! Let me know if I can help at all!

    oh - and be sure to set up some Keyword Alerts for some of the topics you are knowledgeable about, or other topics that interest you (like Washington, Rehab, apartment, etc ) so you'll be notified that those words were mentioned in the forums and can jump into those conversations! It's also an awesome way to meet new people from your area when they introduce themselves to this forum!

    Podcast Guest on Show #92
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  • Kathy Sanders
    OP
    Marysville, WA · Member since 2013 · 3 posts · 0 votes
    13y

    Thanks Joel for the perspective - appreciate the feedback.
    Brandon - I may take you up on the offer and thanks for the reminder about the keyword alerts. I'll get that set up.

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  • Account Closed
    Burlington, Washington , WA · Member since 2014 · 7 posts · 1 vote
    12y

    @Kathy Sanders

    Welcome! I am on the ground in Skagit County. A recent transplant from Oklahoma.

    I am looking for any Owner Carry SFR's/Fixer or Duplex in this region.

    If you hear of anything please send me a smoke signal.

    @Brandon Turner

    I really enjoy the podcasts! Keep up the good work.

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