All Forum Posts by: Michael Haas

A lot depends on who is doing the work- if you have a good contractor he should be able to pull together a rough estimate for you, and after he’s done this a couple times you may have learned enough to estimate it on your own. Contractors are busy enough right now that you may have trouble getting one out to a property that you don’t already have under contract / pending, but like you hinted at you paying them a bit up front for their time and expertise on the estimate would go a long way. 

If you use hourly labor (Like I do) personal experience helps a lot- take a look at each project and count the days and multiply by your guy’s daily rate, then do a rough estimate for materials. This isn’t very easy to do unless you have a bit of experience  

It’s a lot like riding a bike- after you’ve done it a few times it comes fluidly and naturally, but it takes some practice (and a couple of falls) to get started. Good luck!

I'm a buy and hold investor as well, and my formula for buying condos is...

Don't buy condos.

Sure, purchase prices are lower and they're pretty low-maintenance rentals, but most of your creative layout and leasing options are gone with a condo, and the returns I look at in Seattle for condos are abysmal. Add to that the risk of rental caps, picky neighbors, and an unpredictable condo board and I don't see any reason to put my money to work there. STR returns tend to be better, but then the risk of the HOA destroying your investment becomes even higher.

Condo boards are not typically made up of investors, and do not typically have investors best interest at heart. I think that's putting it generously :). 

@Valentina Scialacomo when you say you've "just been approved for a mortgage" are you talking about the home you already bought with your FHA mortgage or an investment property mortgage? Owner occupied loans will have different downpayment amounts and rates than non owner occupied (aka "investment properties") Your first step (if you haven't done so already) is to get preapproved for a non owner occupied, investment property loan. Be aware: There aren't really low downpayment products for investors- you're pretty much required to put down 20- 25%.

Of course there are ways to close on the property without 20-25% cash, but that wouldn’t be through a conventional mortgage. 

@William Fifield - was there a question here?

This one is plain and simple - do not write that check without assurances that the property is in fact under contract. That means talking to the listing agent, owner, and/or seeing the PSA. Scams are unfortunately relatively common in this type of transaction.

Best of luck!

When installing direct-to slab I always

1. Seal the concrete with paint on sealer, 2-3 coats

2. Lay down 6 mil vapor barrier

Concrete will almost never be perfectly dry so those extra layers of protection will keep your LV dry. That won’t help with cushioning or heat retention though- I’d recommend a waterproof underpayment like pergo gold for that. If you go that route you can skip the 6 mil, although I’d still seal the concrete while it’s exposed and you have the option. 

Best option for heat retention and leveling is always a plywood subfloor on 2x4s or thinner sleepers- this would make leveling a breeze, but you do sacrifice some ceiling height. 

Let me know if any of that doesn’t make sense, and Good luck!

There's tons of remodeling and rehab work in Seattle, but be careful... it can be strenuous, dangerous work, and a lot of remodel hazards (like lead paint and asbestos) have a larger impact the younger you are. Its a great way to learn how houses work if you're careful, aware, and safe though!

There have been a few other BP threads on this topic as well:
- https://www.biggerpockets.com/forums/12/topics/556580-16-year-old-interested-in-real-estate

- https://www.biggerpockets.com/forums/12/topics/412648-can-a-16-year-old-make-a-killer-living-is-real-estate-investing

Good luck! If you find any rehab work you want to do feel free to reach out to us, we rehab 2-3 houses a year in King County. I'd just have to check that applicable child-labor laws to make sure its all kosher :).

We have a STR in West Seattle and Stevens Pass (Skycommish), WA. Great market, and although there are regulations in Seattle its just paperwork, and not that onerous. Our STR there makes bank, so I'm willing to fill out some paperwork :).

You're definitely on to something @Joel Coffman - Real Estate is a long term play, and no one can hold on long term like a 15 year old. Learn sales, economics, and how to rehab properties - rehabs are where the deals are found in our market, and although you don't need to do the work yourself you should know how its done so can work more seamlessly with your handymen & contractors. 

And if you want to make some cash and rub elbows with other real estate folks, painting houses or doing other small jobs for investors here like @Jess Haas isn't a bad idea. Reach out, tell them you want to learn, and ask them how you can help.

Cheers and good luck!

Welcome @Glenn Istre! Fixated on Real Estate (FORE) is an ok meetup, although I get a lot more value out of just grabbing a coffee with fellow investors I meet here on BP or elsewhere.

What part of town are you looking to invest in?