All Forum Posts by: Curtis Bidwell

@Mike Mefferd I have a 42 unit (28 studio, 10 1-bed, 4 small commercial).  We have 2 sets w/d bringing in about $400/Mo.  Over the last 10 years we’ve averaged $300-500/yr in maintenance.  If you have more than 1 set it’s not too big an issue if one is temporarily down.  

If you simply want to offer a service for convenience to your residents then using a service is the best route.  If you want to recoup cost of power, water, sewer -and add to your total cash flow (read as: increase property value), you need to own your own.  

@Scott Settimo I have used my home equity to purchase several properties over the years. I use a HELOC because, as has been stated, you only pay on what you use as you use it. Also, I can pay it down and use it again and again and again - without paying new loan fees each time.

Flexibility is another key. Generally you’ll have a 10 year draw period where you can borrow and pay interest only.  After 10 years it will amortize.  

HELOCS are often a very reasonably priced loan product. Banks will sometimes put them ‘on sale’ where there is very little upfront loan cost. I think my last one had a $75/year fee and they paid the streamlined appraisal. 

Hi @Bjorn Ahlblad Welcome to the site.  I also have a couple properties in Shelton (and Olympia area).  There is a meet up this Monday in Olympia hosted by @Naomi Pinger.  Its a good place to connect with other likeminded folks if you can make it! 

• 02/19/18 06:00PM at Ramblin' Jacks Downtown Olympia.  

@Tony Castronovo  So, yes you can do a 1031 but as has been said, is it worth it for a lateral move with time constraints, etc....  

The time you have held a property is not an issue for a 1031. The issue is intent. You are trading a group of investment properties for another of like kind. Shouldn’t be an issue.

 Value is sales price minus sales expenses.  Find a good Qualified Intermediary. They’ll be able to give you specific details and direction.

Good luck!

when we have purchased occupied properties we send a letter to each resident letting them know of the transfer of ownership, new name and mailing address, contact info for maintenance/repair issues, and how rents are to be paid (mail, onlineu, etc).its good if the previous owner also participates with a notice of transfer but it’s not necessary.  they generally know by this time after inspections, appraisals, etc...

I had a tenant who moved out several months after we took over her complex.  She left a mess and damages and we deducted that from her deposit.  She sent a demand letter for the rest of her deposit because she “didn’t have a contract with us.” We sent her notice that we didn’t just purchase the building but the contracts as well.  

@Carly Snapp My son just recently closed on a home in Seattle ...on just his 3rd try!  He looked at the home the day it listed, had inspections done the following day, He was preapproved for a quick-close loan, THEN made his offer with a $5k escalation clause up to his top allowable price accompanied by a 5% non-refundable earnest money upon approval -with no contingencies.  He only paid $106k over ask.  With a few improvements and 2 months he already has equity! 

You have to be prepared and decisive, fully ready to act. 

Good luck! 

@Account Closed you are correct, yes you can notify the resident that there is NO emergency notification, evacuation or relocation plan.  I have a form that states just that.  Also, per line (12)(a) single family units are exempt from this requirement.  

@Tierra Petersen Great timing! We just filed the final papers for our Boundary Line Adjusment THIS WEEK! After numerous previous submittals over the last 18 months we finally got approval from the city to submit our finals and get them signed off by the county. What a journey it has been!

A year ago, the family we bought this for (who was supposed to purchase it, separated and left us a MESS! 2.4 acres of hoarder-ville! We have cleaned, hauled, remodeled, relandscaped, etc... all while waiting on the city to give approval. The Master Builders Association have threatened to boycott the city! The city engineer was fired (finally), and hopefully things are free to move forward. We have followed their rules, adjusted to their new rules, submitted to their ever-changing requirements, delays, unorthodox procedures, etc...

At this point our plan is to sell the original home with 1acre (hopefully listing mid-January), leaving the remainder with the adjacent home that has the easement and now almost 1.5 acres to short plat. We plan to begin the short plat process in January.  

@Stanley Yang I Have done this several times here in Washington State for financing purposes. I simply went to the county and paid a filing fee to file a Quit Claim Deed, avoided any transfer tax by stating "mere change in identity" on the excise tax form. An LLC is a pass through entity, so as long as the people involved are the same there has been no issue. (Never used an attorney to file a paper anyone can do). I can't speak for Ca, but that's what I've done here In WA.

@Ben M. I think location plays a bigger role than type of housing.  There is a rental market at every social-economic level if your in the right location. I have single family, duplexes and apartments ranging from $500-$2500. I never had to lower rent on an existing tenant during the recession.  (We did lower expected rents on some empty units to get them occupied.)  

I would agree with @Jack Bobeck about having reserves.  While I had adequate reserves to maintain our homes and pay off my second mortgages, I didn’t have adequate cash to invest at that time, which would have been great! 

Locationwise, I’m south of Seattle in Olympia (state capital) and we have a strong job market in multiple industries as well as government offices.  Being in a high demand location mitigates risk of downturns. 

Also, own more than 1, whether it’s a duplex, tri, or multiple houses. As @Thomas S. was alluding to, spreading your risk across multiple units always helps during turnover, vacancy or market adjustments.