All Forum Posts by: Jonathan McKay

Agree with Michael here. Also worth thinking about your target market, and how they are going to find out about your house, that will help you think of amenities that they may appreciate. 

Welcome to Spokane! Things are changing fast, but if you put in the work to find a good deal it'll definitely pay off :)

I don't see a downturn in the next 12-18 months. I think if there is a national downturn, the shift to remote work will continue to buoy Spokane prices over the next 2-5 years.

Spokane is in an interesting place, to the point that even sources like the Economist and Zillow are commenting on it: https://www.economist.com/unit...

Personally, I'd love to keep buying. Prices are still 30-40% below comparable cities like Boise, Colorado Springs, and Missoula and while deals are tight I've found a few where the numbers penciled this year. I'm skeptical you'd be able to find a side-by-side duplex in a reasonable neighborhood for <200k. I found an up/down duplex for $180k in December, but I paid cash and it had bedbugs.

Good luck with the search!

I've done a few partnerships in Spokane and have my own portfolio, would be interested in doing more. Send me a DM 

Agree with Jody on both counts. 

1. You're likely not to make this deal. Having a love letter ready is nice, but not likely to do the trick. 

2. If you are willing to put in the time, now is a good time to do short term rentals to maximize cash flow. 

This is possible with MF, but you'll have to probably find something off market / accept some risk in order to hit these targets. 

I have a 12 unit, value ~$1.3m that is cashflowing ~$40k/year so that's close, but the bank would only finance $800k to keep DSCR at 1.25. So this is just shy of what you want.

Instead you would have to find something in a sub-market (i.e. Cheney, Medical Lake) where cap rates are about a point higher, or find a harder neighborhood where you can get above a 6 cap for your cashflow. Office has higher cap rates now, so if you are willing to eat the risk will pencil to a higher cashflow than than multifamily. 

If you want to try and achieve this sort of cashflow with Single Family / 1-4 MF, I respect your ambition and wish you good luck, I don't think I would be able to achieve it. 

@Nick - I think the price that you could get in this area will depend on if it is north of Mission or not, and just how close it is to the river. That being said with $15k / unit you can do a lot. 

I sold 1202 N Pittsburg, and I'm not sure I could rent the 2bd 1ba for more than $1000, even with high end finishes. There's also a triplex on Zappone on the market that could serve as another reasonable comp, maybe closer to what you are looking for. 

@Nick Beeler this looks like a reasonable deal. But I would want more details to really make a call. What neighborhood, where precisely in that neighborhood? Deferred maintenance? What size units?  Recently sold triplex in Chief Garry, 4-plex in hillyard and 4-plex in west central so those could be good comps. 

@Michael I came to the diametric opposite conclusion this year. I exited Hillyard, West Central and Chief Garry because I ended up getting more difficult tenants and it was a headache to manage small mulits in these neighborhoods. I must have been doing it wrong, so curious what your secret is!  

Focus on the second deal -- often for people in your situation you'll want to focus on how you can get the capital for the next purchase. I would start there.