All Forum Posts by: John Barrett

House hacking is also a means of getting started with less money. If I were in your position I would be looking at finding a house which you could rent out rooms. Even if it is a smaller house there are lots of folks looking for a room to rent. While it wouldn’t be a long term solution it would allow you to get started and cover the majority of your monthly mortgage / living expenses. I would target areas like North Everett, Lake Stevens and Marysville. Prices are lower but people can still commute to job centers.

Previous responses are correct that it depends on the market in your area. We include all appliances as a way to get higher rents. The class and finish of your property will dictate what level of appliances you need. A common mistake I see is people put much higher end appliances in than is really justified given the delta in rent you will receive monthly. This is an investment and you need to earn a return on your money.

Hi Peter, land development and building is not for the faint of heart. That said if this is something you are really interested in doing I would suggest to go find the land first. Once you know where you want to build you can start ensuring the rest of your plans will fall into place. In Seattle and the surrounding area I would be really surprised if anyone is selling developable land for just the value of the house. Based on the price you listed you will need to look in areas quite a way from Seattle. In those areas zoning requirements can vary greatly. I wish you good fortune as you move forward with your plan. In the right market this can be a really successful strategy.

I would just ask for clarification as to why they want to sign new leases. Rather than being malicious it could just be the case of an owner who is friendly with the tenants. If you are concerned run them through the rental application process, get copies of the current lease and documentation the rent is being paid on time. Make sure the rents are at market rate and I also wouldn’t agree to anything longer than a 6 month lease.

I wouldn’t spend any time worrying about your last tenant other than to get them out quickly. Focus on getting your property flipped and ready for your next tenant. Each month your property is not rented (to a good tenant) is ~8% of your yearly income for the unit.

Hi Joe, My wife and I like the Cascadia Investors Alliance - North End Edition. It’s usually the 4th Monday of the month up at Bob’s Burgers in Marysville. Kelly Soderlund host it and it’s a good way to meet up with other investors in this area. You get the chance to talk with other investors doing interesting stuff and no ones trying to sell you on some get rich quick scheme or their latest seminar. It’s a bit smaller group than some of the other meet ups but it makes it easy to chat with people and get your questions answered. Hope this helps.

My wife and I have section 8 tenants in our properties. We filled out the requested forms and other than getting the initial inspection of the unit have had no problems working with this agency. The rent gets deposited on the first business day of the month and the and the case managers have even assisted in getting tenants to follow the rules of the lease. Vetting of potential tenants is still the key to making this workout successfully for all parties. Hope this helps.