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All Forum Posts by: Monica S.

Monica S. has started 0 posts and replied 12 times.

Post: Question about Washington ADU law

Monica S.Posted
  • Rental Property Investor
  • Bremerton, WA
  • Posts 12
  • Votes 9

Just commenting about Bremerton and ADU's - the city council just voted to lift the owner occupancy restrictions as well as parking and design restrictions and those are now in effect. They also voted to allow two ADU's per lot.

https://www.codepublishing.com...

Post: PENFED Heloc Reviews

Monica S.Posted
  • Rental Property Investor
  • Bremerton, WA
  • Posts 12
  • Votes 9

@Jack Bobeck I appreciate the heads up! I'll make sure to get comps ready. At first they told us they were going to do a drive-by appraisal but have since said they want to do a full appraisal, which I just paid for yesterday (it's not scheduled yet). Good to know about only getting 1 protest too.

I've never used Xome before but looked up our property and they have the # of beds/baths and sq/ft completely wrong. Not sure where Xome is getting their info from (the county, Zillow and Redfin all match up) but I'm guessing that's why PenFed requested the full appraisal. 

Post: PENFED Heloc Reviews

Monica S.Posted
  • Rental Property Investor
  • Bremerton, WA
  • Posts 12
  • Votes 9

@Sunny Suh Do you mind if I ask what conditions they wanted to you to fix? We are going through the heloc process with penfed now, 2.5 months in and haven't gotten to the appraisal point yet. I'm hoping to mentally prepare for what's to come...

Post: Knob and Tube Wiring

Monica S.Posted
  • Rental Property Investor
  • Bremerton, WA
  • Posts 12
  • Votes 9

I agree with getting some estimates (if possible) and working those into your numbers. 

I found it very difficult to find an insurance company that would cover a house with knob & tube wiring, even though that type of wiring is very common here. Most insurers said no immediately. I did find one eventually, pm me if you get to that point and need a recommendation. 

Another thing to consider when you are running your numbers, especially if there are any delays in getting the place re-wired: insurance premiums will most likely be higher for a building that has k&t wiring. It added almost $60 more per month in my case but of course prices will vary depending on the area/property etc. 

Post: Student Loans, Savings or REI

Monica S.Posted
  • Rental Property Investor
  • Bremerton, WA
  • Posts 12
  • Votes 9

Welcome to BP! 

Ten years ago I was in a similar situation you were in (though owed less) and paid off a chunk of my student loans right after graduating. Like you, I wondered if I had made the right move or if I could have started investing. People seemed uneasy about the economy at that point and there was a lot of talk of layoffs in my office. My loans were at 8% and I didn't know enough about investing to feel confident I could earn a higher return, so I made the decision to go all in and pay off my student loans as fast as I could. Also like you, I used a web calculator to find out how long it would take me if I added x amount of dollars to my monthly payments. That's what made me totally obsessed with the payoff. 

I had two side hustles in college but since I got a job after graduating, I kept those side hustles and dumped the extra money into my loans. When I saw how much that helped, I started another side hustle and did the same. I also got a promotion at work. My payoff timeline accelerated quite a bit and when my loans dropped under 10k, it really fueled the fire under me. I had been driving a crappy car and eventually ditched that for public transportation. I didn't upgrade my cell phone, brought my lunches to work, said no (most of the time) to fancy coffee, turned down my friends a lot for hangouts (that one I kind of regret) and reduced my shopping down to almost nothing. I didn't have cable (or even a TV) and had no subscriptions to anything. I had been renting a room at the time of graduation for $500/mo, and moved into a different place where I rented a room for only $300/mo. That helped quite a bit. You're living at home, use that to your advantage for as long as you can.

Two years after graduating, I became debt free. I had nothing in the bank, but being free from debt was absolutely one of the best feelings in the world (so was seeing my friends again!)

I kept a couple of my side hustles going and continued to work hard at my job and earned another promotion. My savings rebounded rapidly, but real estate was appreciating like crazy (Seattle area) and I was priced out of the market. And you know what? At 25, I was able to buy my first property anyway, in a city that was fairly expensive (Redmond, WA) solely because of a partnership. There are always ways to get into REI that don't involve doing it on your own, keep that in mind!

If it makes you more comfortable to pay off your student loans and puts you in a better position to get into real estate later (debt to income ratio wise), go for it. You're already looking at part time jobs, maybe you'll end up finding a way to pay your loans off faster through those or through a promotion (or even moving to a different company entirely, which often means a raise). Have you looked into consolidating and refinancing your student loans? It's a great way to pay them off faster and you can refinance a few times if the rates are in your favor. 

If you want to start investing in real estate, do it! I recommend talking with a mortgage broker to see what you can qualify for. It's free to talk with someone, and can really help you figure out where you're actually at, what you can eventually purchase and how to get there (including ways to improve your credit so you can get a better mortgage interest rate). There might even be first time home buyer programs with down payment grants or no down payment options in your area.

I also recommend not buying at the top of your budget unless the numbers make sense/you're ok with the risk/your job is stable. You could buy a house and rent out each room to cover your mortgage (also known as house hacking). This would allow you to continue paying down your student loans quickly, possibly even at the same rate.

Another way to start investing: does your employer offer a 401k with company match, and if so, have you signed up? Free money is always great. 

Last bit of advice: while you're waiting for your savings to build back up, read as much as you can. There are a lot of recommendations on the forums for good investing books. Your local library might even have some of them as ebooks you can download and read for free. While I'm all for diving in and learning through action, it's good to be more prepared before doing so. You'll learn a lot of strategies and get a feel for what you'd be comfortable chasing after.



Post: Rehab Floorplan Feedback Needed

Monica S.Posted
  • Rental Property Investor
  • Bremerton, WA
  • Posts 12
  • Votes 9

I'm liking the Unit 1A plan. Having an extra bathroom is always nice and that plan would create a main bedroom suite where bedroom 3 is. You could always put a sliding barn door or french doors on bedroom 2 where the dining room was, which would open it up for options. It could still be used as a dining room (albeit a smaller one), or an office (which might be nice with people working from home more often) or a bedroom. 

Post: ADU & DADU in Seattle & Bellevue

Monica S.Posted
  • Rental Property Investor
  • Bremerton, WA
  • Posts 12
  • Votes 9

Bremerton is in the process of removing owner occupancy from properties with ADUs/DADUs to comply with E2SHB1923. I'm not sure when it goes into effect.

Post: First investment property multiplex hunting

Monica S.Posted
  • Rental Property Investor
  • Bremerton, WA
  • Posts 12
  • Votes 9

It sounds like Bremerton might be a good fit? You might look into houses with ADUs and house hack that way. The city is also going to be relaxing their ordinances on new ADU construction in order to comply with the bill E2SHB 1923 that passed last year, which should make new ADUs cheaper to build. If you are planning on staying in the area or keeping your investment property for a while then that could be a strategy as well.

We started off investing in Bremerton, fell in love with it and then moved there. I won't sugar coat it entirely, the housing stock is old and a lot of the houses need work (more often than not, a LOT of work). We've really loved being close to everything: (covid aside) downtown with all the breweries and restaurants, just a few minutes away from hiking trails and a "secret" waterfall, 30 minutes to Seattle via fast ferry etc. If you do end up considering Bremerton and have any questions on neighborhoods, I'm happy to throw in my two cents!

Post: New Deal in Bremerton, WA

Monica S.Posted
  • Rental Property Investor
  • Bremerton, WA
  • Posts 12
  • Votes 9

@Thomas Marvelle

The link isn’t working for me either but I’d also be happy to help!

Post: Coating for Weathered Stucco

Monica S.Posted
  • Rental Property Investor
  • Bremerton, WA
  • Posts 12
  • Votes 9

I'm by no means a stucco professional but I do live in a 105 year old stucco house that has a few hairline cracks and holes. I've been repairing small (quarter size or less) holes using a product called stucco patch and so far I'm happy with the results. I haven't worked on the hairline cracks yet. I was planning to chisel them out into a "V" shape, then use a flexible sanded caulking for repairs, and then repaint the house. Now that you've mentioned the acrylic stucco finish I'm also intrigued!