All Forum Posts by: Julien Jeannot

What a great find! Congrats, perhaps a little jealous lol.

I would agree.

I found the 2-4 units sapce is more competitive then 5-10 units and therefore cap rates are lower. The competition is due to lower overall price points therefore lower downpayment required, conventional lending is available, and house hackers love them.

the Seattle area has been more of an equity play in the short & long term than cash flow. Long term 3-5 years the market has been quite generous with YOY rent increases factoring out the COVID restrictions of course.

Another approach which is a bit more expensive, but allows to you to move faster.

Purchase with private money through your network or local firms such as Flynn Family Lending then refi into a conventional product. Check with your lender, but it is typically easier to get a conventional loan via refi then purchase. Ask if any seasoning is required.

Private loans will have hefty up front fees and ~10% interest only monthly payments. A lot of investors who are not able to qualify for a traditional loan on purchase go that route: no W2 income, well optimized tax returns showing no income, ect. It's all about the numbers and moving forward.

Welcome Dee,

I'm in the Seattle area. What can we help you with?

 Sure thing, send it over.

I would suggest to have an experienced investor review your analysis.

I've lost count of the number of analysis I've ran over years, but I alway appreciate a second pair of eyes before I make an offer. I've found peer review a best practice especially on deals outside my comfort zone.

 Pretty much, you can also host open houses with brokers. It's a way for you to drum up business and build a relationship at the same time.

I also found it insightful to see a future business partner in action. Are they a go getter? How's the customer service? How do they represent the broker? Are they a team player? Can I refer leads to them and trust my client will be handled to my standards? 

Best to reach out to a local lender. There are a lot of factors that plays into it. More then happy to share the lender I've personally used for all my properties.

WA isn't the most friendly place to evict, best to hire an attorney if you are not using a property manager. Even better, set up a solid screening process and criteria to ensure great tenants.

Welcome to BP.

WAREI and 10x are great groups and full of helpful folks.

@Eric Yu, curious in your STR research. Any cities in WA that peaked your interest?

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Contributors:
Gina Jeannot

BRRR & house hack Strategy

What made you interested in investing in this type of deal?

Property was ignored by investors due to poor marketing, priced above market and area stigma.
Upon closer look:
-Cosmetic rehab
-Poor management
-Great area
-Provided amenities

How did you find this deal and how did you negotiate it?

MLS
Negotiated reduction in price, new roof, gutters, and washer/dryer

How did you finance this deal?

Conventional

How did you add value to the deal?

Full rehab in both units
Landscape

What was the outcome?

Significant equity build and 3x the rental income

Lessons learned? Challenges?

Jump in, ignore the "guru" rules and figure out what works for you.