All Forum Posts by: Yinan Q.

@Jared Butterfield Welcome to BP! Glad to see another investor from the Seattle area. 

@Joel H. 

Welcome to BP! Sounds like you have a good plan for your REI venture. I suggest you join some of the local REI meetup groups and network. I am sure you will find good referrals for attorneys and title companies.

@Sheila Goebel 

Welcome to BP! You are at the right place. In fact, I would say BP is THE website to learn real estate investing.

Typically it should be a % on the amount of money invested, not your profit. But it really depends on the agreement between you and your investor. 

@James Sotipalalit 

 I would partner with someone local RE investors who has experience. As @Brett Russell said, for buy and hold type of deal, you need to know a lot more than just the market value. You need to know the rent, tax, insurance, HOA, and how much it costs to make it rentable. Then you can determine if it is a good deal or not.

But if you are confident that it will sale for 215K, you might consider flipping it for some quick profit. Again, you need to do you homework and make sure the numbers work out. 

@Reuben Stone 

I hear you loud and clear. In many areas the market is too hot for investors. I am in the Seattle area and here is just one example of the many overpriced properties on the market:

4plex built in the 1970s. C property in B neighborhood.

Each unit has 3/1.75, rents for $1,150/month, including water and trash.

The listing price? $660,000! 

Using the 50% (probably should use 60% since the landlord has to pay for water and trash) and assuming 5% vacancy, cap rate is only 4%.

Who would buy at 4% cap rate? I don't know. I know I won't.

@Tamar Mar 

Congratulations on your first deal! And very successful one, especially in a hot market like King County. Good Job!

@Sidney King 

Welcome to BP! KC is a good market for buy and hold! 

@Cliff Harrison 

I think you can find SFR in JoCo that meet or close to meet the 1% rule. I have a few rentals there and I am looking at expanding my portfolio.

First off, congratulations on the deals! The numbers look really good in the Seattle area.

Based on your description I like the second one better, it's newer and in a better location. The fact it has 3 br means it's more likely to attract tenants with a family, and a family tenant is typically more stable especially if the school is good.

Anil, welcome to BP!

I am just like you, trying to find my first deal in the Seattle area. As many say, the 1% rule is just a rule of thumb number. You need to set up your own criteria and do your own calcs.