All Forum Posts by: James Lusk

If you are willing to put time and money into a property, I would search for a distressed property and look to add value. This will leave you in a better position if/when market corrections occur. I would say this house isn't a "deal" persay as there are many comparable homes at the same price point. 

I believe this totally depends on what your goal is here. Are you planning to live here a long time? Are you thinking you will eventually turn this into a pure investment property and hold long term? If you are staying for a long time and you aren't relying on this as a rental, it should be fine. Achieving 1% in Shoreline, I don't see that happening. I have a rental in Lake Forest Park that I got a screaming deal through family on and I am getting .7% after factoring in rehab costs. I'm ok with that due to the equity position I am in with it. I just wouldn't want to be extremely leveraged AND have no cash flow. Be sure to leave yourself an exit strategy. Best of luck!

None of your links are working for me either. I tried all 3.

Welcome Justin! You have come to the right place. I would suggest just reaching out to people in your area here on BP. That was a huge help for me and I was pleasantly overwhelmed by the willingness of other local members to meet up and chat with me. Set up keyword alerts for the areas you want to work in and see who is posting about those areas and message them. Good luck!

I think you are onto it. if you are unable to bring the money/financing to the table, the most valuable thing you can bring to the table is a deal. Since you have time, I would suggest investing it into finding deals. Once you have the deal, there are lots of options. @Ryland Taniguchi has a wholesalers workshop that you might consider. That would be one way to start earning capital without needing to qualify for financing.

Hi Francesca. What has been your biggest obstacle so far? Is it finding the deals, finding the money? There are many things that can stand in the way of getting started. If you can pinpoint what is holding you back, I think everyone can help steer you in the right direction better. 

It seems that you have done quite a bit of research, so that's a great start. For me, the best thing was to reach out to individuals that were helpful here on bigger pockets and meet face to face. Buy someone a coffee and pick their brain for a bit. So many helpful folks here!

Wow! I wouldn't have thought it could be so high. That is really good to know. That would consume over half of my cash flow.

@Account Closed. Thanks! We purchased and fully rehabbed a SFR that cash flows nicely, but this is our first multi so it's a whole new can of worms.

I will definitely use an inspector who is familiar with this era property. I am an electrician by trade and own a 1916 home myself so the commonly frightening buzzwords such as "knob and tube", "plaster walls", and "asbestos tiles" don't carry quite the same weight with me but it will be nice to have someone who is as objective as possible.

If you feel comfortable answering, could you share what you budget for repairs on these older properties? At least for the prop-forma stage. Any input here is much appreciated. 

I will be sure to keep you updated through the process!

@Catherine German. Thanks for the heads up. This thread is the first I had heard of the rodent issues in this area so your input is greatly appreciated.

@Brent Coombs. Indeed I am chasing those "bigger pockets"! I am aware of the sellers potential profits. This town is a c neighborhood outside of piping hot Seattle. The seller managed to purchase at a time where prices were still depressed and purchased through a short sale allowing a steep discount. If my numbers work and the seller is making a good gain, hey, kudos to them. It's a win win!

As far as the purchase price, $240k is definitely not market rate for a triplex in Tacoma. on the open market, multis are selling at a minimum of 100k per door. Not saying there aren't better deals available out there, but I feel pretty good about these numbers. Perhaps as I grow and make more contacts, larger, meatier deals will become more available. For now, this seems like a solid base hit.

Thanks for your insight.