All Forum Posts by: Curtis Bidwell

@Angad G. 4 points is for hard money! why do you want commercial financing on SFR? As you have seen it can be more expensive as well as shorter terms (requiring expensive refinancing in 5, 7, or 10 years). Unless you have too many loans the better money is on standard financing (less in loan costs, 30 year am, 80% ltv vs. 70%) I get you want them in an LLC, but there are other (less expensive) ways to protect yourself.

@John Frank if the letter of credit is from the bank you should be fine. if it's a small organization you could get info on the officers with a personal guarantee. I would also ask for business references. If they've been around awhile they will likely be fine, they have a reputation to protect.  I'd also get a copy of their insurance, and make sure they have current standing with the state.  They may give YOU a w9 as you are the one receiving payment from them, but that's on them.

@Mo Thomas @Chase Gochnauer I use Cozy and like it ...EXCEPT it takes Soooooo long to get payments!  Plan on 5-7 days from when tenant initiates it. If you don't have reserves and need your money on the due date this is not a good option.  If you want payments faster they have an option that you can pay for. 

@John Frank I rent a couple units to Community Youth Services who fill them with their clients.  I contract with CYS and reserve the right to approve/ dissaprove their placement.  Each resident gives me an application that I charge for and process so that I know whose living in my units.  I also meet with each new resident and give them a sheet with rules and regs that they sign (summary of lease).  In my case all liability is with the organization.  I have about 6 years with them and they have been positively responsive as needed. 

Hi @Sean Reardon  pm me and I'd be glad to give you info on the agent that made me nhat I am. 

@Elisa Zhang For $500 I'm assuming you bought new. For a nice SFR I might buy new, but generally I'm getting good looking used units. Most used dealers that have a store front will give you at least 30 days warranty, and that should be enough to make sure it's in good working order. I found my last dealer from Craigslist. He's a retired vet that works out of his garage in Lacey. I also use Welch's in Olympia. There used to be a good shop in Tacoma but they recently closed (or moved and I haven't found them: ReNew Appliances).

I would go in to a used shop and ask if they have landlord pricing.  Tell them your looking for a laundry set in the $300-350 range.  If you don't like what they show you, go to another. 

@Erin Caldwell where I don't have coin laundry machines available I make it an add-on.  I generally pay about $300 for a washer/dryer set and rent them for $45/mo.  I get my $ back in 7 months and it covers the cost of extra water/sewer.  I'm going on 4 years with one set ($45x48 mo =$2160 on a $300 investment!). Typically they are low maintenance. If they go bad I get another one rather than pay for repair fees.  While i will sometimes buy them off Craigslist I have a couple reputable used appliance dealers that will give me a 30 day warranty and will deliver for cheap.  

I personally don't like leasing machines as the split can eat up any potential profit and sometimes doesn't even cover the added water/sewer bill. I have 3 sets that avg about $200/mo per set in 2 locations. When I leased I netted $50/mo per set. If you go that route be sure to negotiate your rate. 

@Jon Pitcher Like you I do my own for a fascination of the law and process. In my 27 years I have yet to hire an attorney for an eviction in 3 different counties.  I've probably been involved in a dozen or so. Most of the time tenants don't show up for the hearing and you get a default judgement.  I was delayed once for an improper form but the Tenant left the next week seeing it wasn't going to go well for them. 

@Colleen F. It appears everything you have done so far is all verbal.  As there is nothing signed and no $ exchanged you should be within your rights to rescind your verbal offer.  I always wait to sign until everything else is cared for to maintain final control of the contract. 

Good luck! 

Hi @Erin Caldwell  I have a couple properties in the Tacoma area, though most of my holdings are in Thurston and Mason counties.  The short answer is, YES.  The rental market has boomed the last 2 years throughout the region. 

In Olympia I have increased new, incoming residents by about 14% over the last 12 months. On average we are a bit below the Tacoma market in rents. But my 2/1 apartments are now going for $1050 ($925 a year ago). similar size unit as a duplex with garage is $1150. 3/2.5 SFR is $1650.

In Puyallup I have a nice 2450sf 4/2.5 home that rents for $2500.  It rented in 3 days last in the middle of February!

Even in Shelton (somewhat depressed market, tertiary, bedroom community to Olympia) I am getting $925-950 for a 2/1 apartment. 

Hope that helps give you some perspective.    Good luck on your new purchase.  South Tacoma should be a good property for you!