All Forum Posts by: Cory Carlson

I see you haven’t look around other areas of Washington. I also like the Spokane market, tertiary markets have fair values, cashflow and opportunity for some appreciation.

Check out the Salem, Oregon market. Great value, appreciation and upside. I like the demographic out there for small multifamily investments. If you want some analysis to compare to where you have been looking send me a Pm. Just need to familiarize yourself with Oregon’s recently passed Senate Bill 608 - Rent control

I use been verified and Spokeo to find phone numbers. I recently met with a title company that recommended prospect now. Supposedly it has owner information including numbers. I haven’t watched the intro video or messed around with it yet but it sounds promising and more efficient than what I’m doing now

The 1% rule is a catch all for certain criteria in specific markets. Certainly not attainable in many inflated and expensive markets that have strong appreciations like ours. I wouldnt use it as a way to screen properties. I would analyze as many properties and get a Pulse on your market. Perhaps a 3% CoC and 7-10% after tax cashflow + paydown on principle is what's on the market...

We had a garbage appraisal in January. Turns out the appraiser was single handedly trying to control the market of his hometown by under appraising property. I would keep a close eye to make sure you are not getting the same appraiser from the pool. Turns out, the guy who did the appraisal on my clients fourplex had a reputation of doing this. 

I told the lender if they want my referrals to remove him from the pool for conflict of interest and they did just that!

@Vlad Denisov

I reread your question and honesty think I missed the point... oops. The price may fall due to supply demand, cost of financing, and in 2008 people started holding their money closer and taking less risks. Less buyers from people “waiting it out”.

@Vlad Denisov

Location, build quality, neighborhood. As a general guideline it's not just the NOI for valuing a property. Two vastly different properties could have similar NOI in different markets and be priced vastly different.

An example in my market would be a 10 unit in downtown Portland with a 4.25 cap compared to a Salem 25 unit with a 6 cap and similar NOI's.

@Isaac Pyle You likely will not have a choice. I would cosign with them. Also talk to your lender about doing a low down payment using conventional financing. FHA is 3.5% down and the minimum for conventional is 5%. You will see a better cost structure and lower PMI with conventional finance. After you have achieved 20% equity, it is easier with conventional financing to remove your Private mortgage insurance (PMI).

Using your parents credit and credentials will not hurt you. To get them off down the road you would have to refinance, but thats okay. The conventional loan uses credit to determine the PMI. While I have good credit, when using my parents credit the PMI was less than half when compared to an FHA loan.

If you're serious about this I would start talking with lenders who are familiar with this strategy. After your loan application a good lender will outline the pros and cons of what i just mentioned 

Hi Kent, welcome to the forums! Tell me a little more about your goals in the investment world? Are you looking to be an investor of your own or to structure your business towards understanding investment finance and the return metrics associated? 

What is attractive to you about the mid west markets? While i agree, Seattle is very expensive there are plus sides to our NW area.