All Forum Posts by: Billy Au-Yeung

Wow. You are brave! It can be quite a challenge to find a place to rent when you are unemployed along with the fact that you have 4 pets. The landlord is running a risk that you may default on payments while you are looking for a job. Rent can be over $1000 easily.  My 3 bedroom units are renting out at $1400 a month and it is 20 min away from Seattle.  Maybe at least find a part time or temp job first before you land with a full time job. That's what I did in the past.  Once you have steady income, then you can start looking at duplex again. You live on one and rent out the other side, so you basically live free and that's how you build up your wealth.  I am a realtor, loan originator with CPA background. I can give you some guidance if you ever need one based on my professional and personal experience. 

Most real estate broker websites provide their own search like wndermere, johnlscott, redfin. I like to use redfin. If you are looking for properties with more than 5 units, you can try loopnet.  

Welcome Jinwoo! You are here at the right spot. There are lots of good people here with experience to network!!

In this scenario, i assume you are able to sell at $850K just to be conservative.

If you sell it as is, you are already making $400K already out of the gate just doing nothing.  (350-450..i use 400 as an example)

If you want to do a rehab for $300K and sell if for $850K, then your profit is $550K ( the marginal profit is $150K for your hard work)

If you tear down and build for $600K then your profit is 250K (you are actually making the less profit here but you are doing all hard work)

Compare the marginal profit

400K vs 150K vs negative150K

I may rehab it if I were you.  $150K extra profit sounds good to me. 

HI Daniel. welcome. I am a realtor, loan originator for residential, commercial and private lending with accounting and finance background. So I am a number guy. I have a couple of multifamilies and a single home for rental in King and Snohomish county. What you say is true except for one thing. If you own a multifamily property, you pay for most of the utilities and the upkeep of the landscaping while tenants at SFR usually pay for these costs and do their own landscaping, so this is what you need to factor. That's what I told my clients too when they are picking among SFR vs Multifamily for investments. Do a forma income statement first and see which one yields better NET cash flow. If you need help, let me know. Good luck.

I am in Seattle as well.  For 4 units or less, you can still get a residential loan to finance your purchase.  For 5 and more units, it is considered as commercial properties.  You need to apply for a commercial loan.  They have fixed term for a couple years then it adjusts every year. You won't get a fixed term forever.  

I just one of my section 8 tenant as an example.  I have a 3 bedroom 1.5 bathroom unit leasing at $1400 a month.  The tenant is only paying me $150 and the county is paying me $1250.  The county staff will inspect unit and request you to fix anything that they feel it needs to be fixed before they approve it. It is OK though. I love it. Free inspection.

You are still receiving market price rent.  The tenant is paying a small amount and the county is paying the rest.  

I did that once and I eventually found out he was lying and had been taking advantage of me. He eventually owed me over $7K and I had to spend another thousand to evict him through legal process.  If you want to help, try the section 8 tenants.  That minimizes your risk exposure.  I have 3 section 8 tenants now that are doing just fine. 

Hi Sam- welcome!!  I am a realtor and loan originator that deals with residential, commercial, business, private lending.  I also come with accounting and finance background like you do.   I am an investor as well that owns a multiple properties along the I-5 and I-405 corridor.  I live in Renton too.  Maybe we should meet up sometimes.