All Forum Posts by: Maria Keating

I didn't realize stock brokers and cab drivers were no longer.... I deal with them regularly, so there are still some...  technically, an uber driver is still a cab driver just isn't called that.

Being a realtor is really a service provider and just like any other service provider, you will be around as long as your service is desired (not necessarily needed).  If you provide service that your customers value, they will pay you.  If you are stuck on old forms of marketing, selling, etc., you will find fewer and fewer customers desiring your service.  If you constantly have your hand on the pulse of what is desired from a realtor (finding the right property, no just a print out from a listing service based on a set of criteria;  lightening fast response time in markets where properties stay on the market for a week or less;  excellent/accurate/thoughtful value/market comparisons vs. printout from a listing service without critical thinking/analysis applied;) you will have plenty of customers willing to pay for your service (or engage you so you get paid by the seller, whatever the model will be).  If you are not willing to put the effort into service, you'll become obsolete.  No different than any other service provider (CPAs come to mind)....

Hi Ana,

I'm in a similar boat in that I am looking for property in Seattle.  I've been following the market for a while can tell you that it's not uncommon for a condo to sell for $90K over asking price.  It's insane.

People talk a lot about cash flow and I suppose it might be the most important factor for them. To me, it's whether or not it makes financial sense. I can walk away with cash in hand, but still be losing on a monthly basis. After all, the money down has value as well. Wherever the money comes from, you either could have avoided paying interest (if from a HELOC or cash out from a refi) or could have invested it differently. So, figuring in the cost of my money down kills most deals. Aside the cost of a mortgage and maintenance, condos in Seattle (not many SFH in downtown or minute commute locations) have sometimes very large HOAs. So, between mortgage, cost of down payment, HOA and property tax, it's even difficult to break even, despite the outrageous rent. That old building in Capitol Hill still has high property tax and HOA attached to it, not to mention the actual cost for the property.

I've been following the listings for months and cross check with Craig's list on what the rental market  is like in the areas of interest to me and I am just about to start looking elsewhere.  Beacon Hill, West Seattle and then White Center are still ok locations, but I am not too familiar with the trends.  I think Belltown would work for really high end condos, but then, you tie up some $700K in one condo...

Seattle is not really the location for 'cashflow' (finding that to be a misleading term), but I do still believe in it as an investment play.  Amazon, Expedia, and the slew of high tech start ups as well as relocators from the bay area, won't put an end to the need for housing in this city for quite a while.  IMHO, of course...

You are right that Sammamish and Issaquah areas are not far behind Seattle, in both, cost, tax and rent.

I think it depends on what your goals are.  But since you said you are not comfortable with a larger payment, you already have your answer.  I just refinanced my home to a 15 year.  My reasoning is that I want to be done paying for it by the time I retire and 15 years puts me just about there.  The other is that I will always own this place, even if I move on, I will just rent this one out, so I am not going to sell and move on.  However, I do know that I will be able to rent this place and break even at this 15 year mortgage payment, make money even in a couple of years.  That was a big consideration.  As for 15 vs 20, I was told that the interest rate between 30 and 20 year loans are not vastly different, but 15 vs 30 does make a difference.

I am planning on buying another property as a rental and will likely take a 30 year mortgage to make sure I can at least break even for a couple of years if I rent it out.

It's good to hear everyone's thoughts and rationales and then decide what rings true for you.

This is such a broad question with very individualized answers.

I am all for maxing out a 401K for one, you get an employer match, free money.  The other is that you get a tax break on the amount you put in your 401K.  If you are in the 28% tax bracket and you max out, stashing away $18,000 per year in a 401K, you reduce your tax liability by $5,000.  Add that to the free money from your employer and I find this to be very attractive.

As for the Roth, eh, personal decision.  You definitely lose out on the tax deduction which adds to the attractiveness of the 401K to begin with....  I like the concept, but I sure hope I'll be in a lower tax bracket once I retire.  Thus, the 28% tax savings on whatever I stash in my 401K is worth more to me today, then the 15% I save in future years when I draw on the funds in retirement.

Personally, I am all for diversification, thus I have a regular 401K for the reasons above, but I also have a Roth IRA. I funded it back when I still qualified and it just does its thing now. It's good to have some income that will be tax free and other income taxable upon retirement.

True diversification also means you don't have all your money in the stock market.  Thus, I'm here on the real estate pages....  As I see it, play in many sandboxes...  :)

@Troy Fisher:  Numbers are easy, what's hard is the right judgement and experience to pick the right input numbers.  I will try to make it to one of your meet ups, likely after tax season though.  I like your website and your number examples, very helpful.

@Taylor Ballam: pm me for the address.

thank you for the warm welcome everyone.

@Taylor Ballam:   yes it is very expensive here.  I moved here in 2000 from south Florida and had a massive sticker shock.  Looking back, it was cheap :).  I live in the issaquah Highlands and realtors regularly leave notes on my door asking if I am thinking about selling.  High prices, yet low inventory - just adds to my "oh my god, I'm missing out" freak out moments :).  Just because you asked, there is a townhome 'for sale by owner' in my subdivision.  3/2.5 original owner.  Don't know how much as the writing on his sign is too tiny, but the unit next to him sold for $475k.  It's been on the market for a while, which is unusual for our area, but then 'sell by owner' is not common up here.

Have you been to any of the meetup.com events on real estate investing?  If so, are they any good?

@Jonathan J. Miller:  Denver isn't the worst place to move to, though.  I was hoping my son would go to college at Boulder so I have an excuse to visit that beautiful piece of earth regularly.  Alas, he stayed in Washington and my wallet is elated :)

Wow!  So happy I've found this place. Wanting to invest in Real Estate for a long time but always thought I didn't know enough.

I bought my own home in 2006 and this townhouse almost doubled in value.  During the market crash, I new my neighborhood was full of opportunities, but as a single mother, I opted for security and never upgraded myself, nor started investing.  But I look around my neighborhood (issaquah) and seattle in general and feel I am missing out on this tremendous growth. Sure my home increased in value, but it does me no good since I live in it and likely will firever live in it :)

As I've been thinking about what to do in terms of retirement savings, I feel that real estate us a great complement to my stocks. I'm a CPA, so first I pursued (intellectually) the self directed IRA, but the more I think and read, I feel like just investing outright is a better way since I am not necessarily looking to work till I'm 62. I just got out of a job I hated and early retirement seemed really appealing, sans the necessary funds :)

At any rate, my goal as of right now is appreciation rather than current income.  In the long run, I'd like to shift to current income so I can retire earlier (10 years).  

My decisions right now are whether or not stay in my neighborhood (which I know so well and am certain the high demand for rentals as well as purchases will continue) or buy in seattle, where I think the appreciation is even faster and I can find more affordable units than in my neighborhood.  The other decision is to buy condos in downtown Seattle (again lower cost and thus possibility for several units) or sfh in the city, but not downtown. 

I'd appreciate any and all thoughts while I keep listening to the enormous number of extremely helpful podcasts.  :)