All Forum Posts by: Jonathan McKay

@Deanna - this is a good breakdown. I've been doing mainly strategy A. 

I'm an interested party you can sell to. Send me a DM. 

@Jeremiah Purdum have an LOI and putting together a PSA on the 8 unit on the market right now, seems like the deal will come together, but we shall see!

Medical Lake - I bought a 12-plex here for dirt cheap. I would consider expanding my inventory if I find more opportunities, but I haven't seen any yet.

Cheney - I'd be happy to invest here, but generally want a 1% cap rate premium over neighborhoods like south hill. Haven't seen that in 2020. In 2018/2019 there were some good deals. Deer Park is also in this category.

Hillyard - This is where my family grew up so I have an affinity for the neighborhood, but it was the first neighborhood I sold out of. The tenants are tougher, the neighborhood is tougher, and the prices aren't much cheaper. Don't know about Nevada / Otis.

Troy - what sort of deal did you get? I'm entering into Logan with an 8-plex and 9 units across three parcels, would be curious to hear your experience.

This is definitely becoming an issue for Spokane. I'm finding that single family rentals which previously cashflowed at the 1% rule (i.e. $1500 for a $150k house) now rent for $1600 but have a valuation of $225. The way to make the numbers work is to look for things that a retail buyer would not be willing to do (deferred maintenance, tenant issues etc), and try and use this as a value-add. Or go to rougher neighborhoods, which carries some risk, but also brings better cashflow. 

Spokane has been doing well, and there are reports that it will be a top market nationwide in 2021, there's a lot you can do here! 

I'm betting heavily on Spokane, looking to expand to Boise, Missoula, Colorado Springs, or Reno if I can find the right opportunity. 

Guenther is great, but they are not accepting new clients. I use LT, and like them so far! 

Deals I've purchased in Spokane this year: 

3 off market - 1 recognized broker, 1 wholesaler, 1 relationship with seller

4 MLS - 2 with a recognized broker (so I was aware of the property before it came on the market) 2 with new brokers.

Of these seven sellers, I would consider only one truly motivated. Considering the fundamental trends in Spokane, it's tough to find the motivation to sell. I've sold off all the properties in neighborhoods I didn't like, but would have been happy to hold on to them if nobody was willing to pay the price. 

In Spokane based on my portfolio, I'm seeing what the data is saying. As a buyer it's been tough finding deals. It's going to be tough for new people to get into the market, as everything I've found either is a. off market, b. needs reno, or c. Sells first day. That being said I'm very bullish about the city over the long term due to Washington State's lack of income tax and Spokane's modest cost of living.