All Forum Posts by: Ian Broadie

I knew I would find you on here as soon as you said house hacking. Your post sounds a little close to small scale syndication and you would definitely want to talk to an attorney before attempting to do that. Shoot me a text I want to call you tomorrow and chat, I love that your looking into rei!!

This will be my first time attending, I look forward to meeting you all!

@Moritz Bartels That looks awesome to me. I'm a new investor in Gig Harbor as well and I'm just working on my first duplex, so maybe look for another opinion, but the way I see it you're easily hitting the 1% rule and I would assume the 50% rule as well. What interest rate and how much are you putting down? Lakewood certainly isn't Gig Harbor, what does vacancy look like over there?

@Mindy Jensen It does leak is the problem. I wouldn't ever consider tearing off a perfectly good roof for no reason, but this one has multiple spots where its leaked through the ceiling. The previous landlord didn't even patch the ceiling, instead they just nailed cabinet doors to the ceiling to cover it up (which helped me a lot in negotiating when I just had to take those off). The problem is coming from 2" drain pipes and the fact that we are surrounded by trees. They get clogged and the water pools on the flat roof.

I suppose I emphasized the curb appeal aspect a little too much. My options are to replace the flat roof and the gutter system (costly) or put on a pitched roof (more costly). The way I see it, I'm paying more upfront, but because pitched roofs last significantly longer and have much less problems / maintenance (at least here in the PNW due to our trees and rain) I am mitigating headache and cost later down the road

@Luke Tomashek I would love to put on a metal roof but they are so dang expensive! I've been advised against this due to the expense (but I haven't got a formal bid so maybe I will look into that). If I had a pitched roof it would be a 30 year composition. If I kept a flat roof it would likely be TPO. 

@Samuel Sadler That makes sense. I certainly think I'm emotionally invested on this and you have a good point. I guess my question is rooted in fear of the flat roof. I will stand to make an extra 200 or so a month by keeping the flat roof, but I'm concerned that I will have more problems later on down the road if I keep it. You make a good case, I'll have to sit down with both plans and see what makes the most sense

@Jassem A. @Frank Gucciardo

Yes, I apologize for not clarifying that. I don't have property management included in those numbers, but principle and interest is 1700, the additional 800 a month is taxes insurance vacancy and repairs. In my market this is a steal believe it or not. Properties are very expensive and rent is cheap. I'm envious of anyone who can buy a 3200 sq ft house for anything under 400k, much less under 140k, but that's not my market. There are certainly cheaper areas within driving distance, however because this is owner occupied I'm not so much concerned with the cashflow vs it being an area I want to live in.

Hey everyone! I've been working on buying a duplex for a few months now (crazy I know) and I'm coming down the home stretch, but when I brought up my plans to my frugal fiancé she thinks I'm crazy.

Here's the deal: using a portfolio loan, I'm buying a duplex with 5% down for 250k with a 140k rehab loan. It's taken months because this is my first rodeo and putting together the bids hasn't been easy. I want to replace the stucco siding with hardieplank and the flat roof with a 4/12 pitched roof. I also want to replace the radiant electric heat with a mini split system. Those three conversions, along with a 10k contingency accounts for about 65k of that 140k (along with manual labor from me and buddies to remove the stucco). 

This place is real ugly as is (I didn't mention the mansard roof that makes it look like a pizza hut) and the exterior additions would really help curb appeal and thus rentability. Speaking of which, we anticipate being able to rent it pretty easily for 1400 per side and with the fixing up are hoping we could get 1500-1600. With everything our mortgage payment would be around 2500 per month. Not a huge profit margin but I'm okay with it because we will be living in it for a few years.

If we didn't do all the exterior work (kept the flat roof just replace it) and the mini splits and trimmed away all the bells and whistles we could get it down to about 2100 per month and still rent it for 1400. This is a better profit margin, but I'm nervous about having more problems down the road arise from the siding and the roof. I also like the idea of having a nicer home, not only for me but for the tenants I could attract. We also won't be closing until mid October (appraisals are extraordinarily backed up) and I'm nervous about doing exterior work in a PNW winter

Anyway, I'm going back and forth between both extremes here and I'm wondering what you guys think

@Scot Howat I can do owner or not owner occupied so that won't be an issue. I just want to buy it!

@Jay Hinrichs Thank you! I approached all those HML lenders you suggested over the weekend so I'm just waiting to hear back from them today. I'm now considering just buying it outright and dealing with the fixing up later down the road when I can get traditional financing (February). I have (what I think is) a good equity position with around 80-100k at the current purchase price of 250k with no repairs. I actually got a call from Seattle funding in the middle of writing this and they want me to put 35% down (probably because my experience). What do you mean by dodd frank compliant loans? I've tried googling that and I'm not coming up with anything

@Curt Smith Depending on the downpayment I have the cash reserves. That's a good point to keep in mind down the road though thank you

@Patrick Britton I'll give them a call, thank you! This one doesn't really fit that description but it's worth a shot!