All Forum Posts by: David Clinton III

Absolutely. Tanning the time and effort to divide adds value for almost all future uses of the property. 

The market you buy in (and the laws regarding raising rents) are the first keys to understand. Some areas are rent controlled. Others will only let you raise a certain percentage for tenants in place. Still others will allow you to raise rents even if tenant has a lease, if ownership has changed.

I have inherited some great tenants I still have (even with rents increased) and have inherited terrible tenants that I have had to evict. Go in assuming the time and money needed to evict all tenants, and you may be pleasantly surprised when some stay and pay the market rent, and may be great to work with for years to come.

I haven't seen a way to pull sales comps. They are building a Rental comps database you can search here: https://www.biggerpockets.com/...

Since it is new, I'd recommend checking against other sources as well (rentometer, pad mapper, etc.)

For WA state comps, I'd start with Realtor.com & RedFin. These tools are not designed for comps, per se, but you can get a lot of info from them.

Avoid Zillow... these aren't as accurate.

@Brett P Swarts, is this pricing up to date?

That makes sense. I get a lot of info from the 1031Gateway website, and have found them to be very helpful with info. I didn't find that specific answer when I searched, but I could have missed it.

I was just reading up on “deferred sales trust”, this could be an alternative way to keep investing just your portion and defer capital gains. 

Correct. Be sure to take into account any costs of the mortgage, and how long the investment will need to earn in order to recover those costs.

If the rate you can earn somewhere else is more than the rate you will pay on the mortgage, get a mortgage, and invest the difference elsewhere at the higher rate. This nets you the "spread" between the earned rate, and the rate paid out.

If the rate you can earn elsewhere is same or lower, avoid the mortgage, and pay cash.

Sometimes private money lenders will lend in 2nd position. Expect to get no more than 80% combined LTV between your first and what the private lender will lend. Also expect double-digit interest rates. If you have a good plan to make more money with that money, it will be interesting to them.