All Forum Posts by: James Lusk

We used Pentagon Federal Credit Union on a non owner occupied and they gave us great rates and were super easy to work with. Had to open an account and put $5 in. They gave us 80% LTV at 1% over prime.

I just purchased a 12 unit in Lakewood, WA that has coin op laundry. I have a couple questions about coin op. First is what rates are people charging for coin op laundry in the Tacoma/Lakewood areas? The previous landlord had the washers and dryers set at $1 each. From what I have found around the country, this seems pretty low. It seems $1.50-$2 each is more standard. Secondly, there is evidence of tampering with the coin storage lock. The laundry room also has a locked door but the door gets left open and is open to the outdoors where anyone can get in. Has anyone had issues with theft on coin op laundry and how were you able to mitigate them? I've toyed with the idea of going to free laundry and bumping rent up higher to compensate but I am worried that the door will still get left open and anyone can wander in to do laundry. Any input is greatly appreciated, thanks!

Welcome Anthony! Have you established what your goal/s are? Once you know where you want to end up, your path to get there becomes much clearer. My wife and I invest in the Tacoma/Lakewood markets. If you have any questions, feel free to reach out to me. Best of luck to you!

I overlooked one fact in your original post. You are focusing on SFRs! My apologies. This is a different animal. My wife and I were focused on SFRs until we saw the competition and felt that there was more upside to chasing the multis. You will have a harder time hitting those rental/purchase ratios with SFRs from what I've found. Again, best of luck!

One thing to consider is that just because the property is sub 1% rule based on the seller pro-forma, doesn't mean it isn't capable of becoming a high performing asset. Look at your ability to raise rents or charge back for utilities and how you can possibly cut costs. Also, like stated above, figure out what numbers will work for you and make an offer. My wife and I just closed a 12 unit in Lakewood that was listed for $625k and ended up getting it down to $500k. That property, with about 85k in capital repairs, will be just below the 1.5% mark. I feel if it won't pencil out well above 1%, keep looking. The deals are out there. That 12 unit was on the MLS. Good luck and feel free to PM me with any questions.

@Rudy Manna check this link. I think this will give you a pretty good idea. http://washingtonlandlordtenant.info/20-day-notice-terminate-tenancy.pdf

@Rudy Manna Here in Washington you have to give them 20 days notice to vacate so you have missed the window for end of January. Of course, you can offer cash for keys as mentioned to get them out sooner. That may be your best bet. If you want to notify them that they will need to move out though, you will have to give them that 20 days notice as even though your lease expires, they just go into month to month if you don't notify them that you will not be renewing their lease.

Best of luck man. We just inherited 10 tenants with our Lakewood 12 unit and I'm pretty sure I will be going through this same headache to get a couple gems out.

Looks great guys, congrats! Nice to hear of successful partnerships. Was this an MLS property?

Its a 30 year loan. The rate is locked at the initial APR for 5 years. After the first 5 years it becomes an adjustable rate at which time you may want to refinance into another locked term depending on what market rates are.

Daniel Jarvis If you go with the LLC, be sure to shop around for commercial loans. The terms vary greatly. We are currently in the process of closing on a 12 unit under an LLC with a commercial loan that has a 5 year fixed rate around 4%, no balloon, and a 30 year amortization. Not saying this would be achievable for everyone but just know that not all commercial loans are the same.