All Forum Posts by: Melissa Murphy

@Brandon Ely hi Brandon. Curious if your rents are fair market value. I am very surprised at how quickly rents have accelerated, and some owners haven’t adjusted to the market (myself included on some units). If you are able to increase rents, and pull some equity, that may be a great option.

Hi Jeff, you are using the Auction.com app, right? Lots of great info there, and then I double check with First American Title on ones I am monitoring. Nefty in the title department is a great resource. They can also put you on the list for a nominal fee to see the newest postings. Good luck! 

Hi Justin,

A very good question and lots of variables to consider. A spec is a riskier way to get into the market, but the payoff can be stronger. It seems like it would be putting all your eggs in one basket. With the cash you have, you could probably buy a rental or house hack (buy a duplex and live in one side), which is less risky, also eliminating your rent expense.  Also, private money, although not cheap compared to conventional rates, would allow you to get your foot in the door and likely refinance, once you have built up your employment history. If you need the names of a few local private money lenders, happy to connect you. 

Congrats on getting started so early on this great journey! 

Melissa 

@Rich Lathrop I have a duplex lot coming online shortly. Where you looking for a higher density?

Hi Johnny, I have had great experience with First American Title, the downtown office. They are efficient, and have been my go to for years. Amanda Corwin is a great closer! 

I highly recommend Tyler Black at Lukins and Annis for a Real Estate attorney. Jeff Johnson NAI black as mentor. Best of the best! Oh, and Brent Johnson his son has helped build dental practices from the ground up too. 

I highly recommend Tyler Black at Lukins and Annis for a Real Estate attorney. Jeff Johnson NAI black as mentor. Best of the best! 

Investment Info:

Small multi-family (2-4 units) other investment in Spokane.

Purchase price: $50,000
Cash invested: $50,000

Fire destroyed duplex. Close to Gonzaga University.

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

I saw the property pop up on the MLS. Within minutes, there were multiple offers. The first buyer backed out, and my offer was the second highest.

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

MLS. Had a full price cash offer submitted without minutes of the deal being listed.

How did you finance this deal?

Cash.

How did you add value to the deal?

To be determined. There is a lien from the City of Spokane for a zoning violation. Asbestos testing is necessary. After following all protocol, we are confident that we can build a very high quality duplex.

What was the outcome?

To be determined.

Lessons learned? Challenges?

Currently, and we will update accordingly, we are learning about the Code Violation process and asbestos abatement prior to demolition.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Prime Real Estate Group and Align Investments.

Investment Info:

Single-family residence other investment in Spokane.

Purchase price: $310,000
Cash invested: $70,000

Our next project! Will update with some great photos to detail the before and after of this project. To date, this is our most significant project.

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

Knowing the neighborhood well, it is highly desirable because of the vicinity to downtown, and walking distance to many area parks. A friend reminded me that when I bought my house 4 years ago, I stated that if the neighbor were to ever sell, I would buy their house in order to grant a boundary lot adjustment for my current home, allowing for the option of a 2 car garage.

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

I saw the property come on the market at a price that wasn't in line with the condition. After it sat on the market, I offered a quick closing using a private lender for the financing.

How did you finance this deal?

Private money, with 100% for the rehab, and 20% ARV.

How did you add value to the deal?

In progress. Check back for photos.

What was the outcome?

The end goal is our primary residence.

Lessons learned? Challenges?

So many lessons.
-Formal asbestos testing protocol
-Working with architects and engineers
-Removing trees and "politics" associated with it, even if the trees are compromising the house
More to come!
_

Great question Jami!

As an agent who worked both the Spokane and Cda markets, I saw the Coeur D Alene Idaho market hit hard during the market downturn. Spokane never saw the same ‘highs’ as CDA and thus didn’t have as far to fall, yet the 2008 crash hit every real estate market because the crash was caused by real estate lending. 

Going back to the prior 4 recessions before, Real Estate prices actually increase in 3 out of 4 recessions. 

Happy to discuss local market insights in more detail!