All Forum Posts by: Pete M.

@Jonathan Woelfle Sounds similar to what I'm hearing from a couple PMs in the area.  Even on the same street, it can vary home-by-home.  I'm not afraid of C class neighborhoods, I just don't want to buy in when the neighborhoods are trending downward, obviously.

@Bjorn Ahlblad That's unfortunate to hear.  Sounds like that may be even more of a concern when you're working in lower income areas, as they're probably going to have more issues.

On top of that, the property is listed as a 4plex, yet the county records show it as a triplex with a garage (so they likely converted garage to an additional unit), and the "land use" is defined as single-family (which is confusing, because the same page says the property is a triplex).

Will be talking to the current PM hopefully today to get his opinion on the property and area as well.

@Matt Ott  Thanks for the feedback, appreciate the insight.  I'm personally looking at cash flow, as opposed to appreciation, but I'm also not looking to become a slumlord either!

Do you have any opinions on that area's future?  Trending in a certain direction, or simply a solid C/C- property?

Thanks.

Thanks for the feedback, @Aaron Nelson.  I'll PM you for specifics on location (I'm paranoid, I suppose).

Few more details on the units:

101

• Month-to-month lease (MTM) $850 + $200 RUBS
• 2 bed/ 1.25 bath
• Wash/dry access in laundry room next to unit shared by 102
• 879 SF

102

• MTM $850 + $200 RUBS
• 2 bed/ 1 bath
• Wash/dry access in laundry room next to unit shared by 101
• 792 SF

201

• MTM, $1450 + $375 RUBS
• 3 bed/ 2 bath
• Wash and dryer in unit
• 1,548 SF

202

• Lease ends 9/30/19, $900 + $270 RUBS
• 2 bed/ .75 bath
• Wash and dry in unit
• 653 SF

Hi all,

Looking at potentially picking up a 4plex (recently renovated, $425k asking, rents are $4050/mo gross + $1045/mo gross RUBS) in the Larchmont area, currently off-market opportunity.  Place is located east of I-5, and a little north of 512.

I know the 1% rule is already tough to find in Tacoma, but I'm not a local (living closer to Seattle now) and don't know the area.  Any feedback is appreciated, both on the high-level numbers, and the general area of the city.

Thanks in advance.

Haha, love it.  I suppose one shouldn't laugh at something like betting on which lawn furniture flies away first, but it's always good to find the humor in any situation.  Reminds me of when we hit a big storm during my last cruise... wife and I watched the crew scrambling around to remove all the lounge chairs from the deck before they started sprouting wings.

And thanks for the pointers!  We'll definitely get a message over to them today.

Good point, @Anna Buffkin.

We have a rental in the Columbia area as well--hoping no problems!

Tagging @Andrew Junquet

@Mason Fiascone  Nope, not investing in WA.  Looking at outlying areas as potential options (Spokane, Yakima, etc), but even then it's pretty competitive for deals that make sense.  I'm partnered with two other guys, and we're investing in South Carolina (bought a duplex recently) and potentially in Pennsylvania as more capital and deals become available.  Much like you, I'm evaluating areas for my own investing as well, and most are well outside of WA.

The PM can make or break you--being remote, you will basically be at their mercy to deal with problematic tenants, find tenants and keep vacancy low, collect your money, find contractors... in short, every aspect of actually running the business.  If you can't find a good, recommended (and check those references!) PM for an area, that's probably a blocker right there.  And ideally, you have multiple PM options for the area.

As for laws... remember they can change at any time.  With proper tenant screening (going back to a good PM!), you can reduce your risk of getting a "professional tenant" who knows how to abuse the system.  There are certainly no guarantees you won't get a bad tenant, but I wouldn't completely rule out an area because of the current laws.

@Marilyn H.

My partners and I are investing in the Columbia area, and will be looking for more duplexes soon.  Tagging @Andrew Junquet

Thanks.