All Forum Posts by: Jake Alger

Hi @Justin NA,

Welcome to BP!  This is a great community to share, learn and be a part of something all of us are passionate about, Real Estate!

There's some great resources here to help guide you through the process of analyzing your first deals as well.

In terms of your goals, I think you're on the right path.  Doing something that is comfortable to you is what will help aid in your long-term success.  Building a future not only for yourself but your kids is what most of us strive to accomplish.

I too come from a tech background and found my love in Real Estate, so I made a change.  My joy came not only from the deals, but the people I'm able to meet and help (both investors and "retail" buyers/sellers).  It's an addicting and very fun industry to be a part of and for someone who is analytical, it will spark your creativity when needed!

I look forward to seeing your future posts and deal analysis questions.

Hi Jeremy,

What have you been doing to market it? Our market has softened a bit for the higher price point homes and they are needing more marketing attention than before, in my opinion. Networking with other individuals and getting the property in front of agents and their clients is imperative. The days of listing on the MLS and getting a ton of traffic isn't a strategy that's working well at the moment (not saying this is what you did, just giving insight broadly). I've seen really well priced homes move quickly, and others sit. The only difference I see is the marketing strategy, network and follow up. Once restrictions on overseas money was tightened, we saw a major change.

Have you had good activity on the property?  What's feedback been?

I'd be happy to meet you to take a look, or I can go out myself.  The pictures seem pretty self explanatory and it appears you've done a great job with the rehab.  Pricing seems inline with other properties in Klahanie and it's a great location to commute from.  I really feel like it's coming down to marketing.

Give me a shout if you'd like to chat.

@Ben Buckley is absolutely correct.  Any information regarding shared maintenance would be recorded on Title.  

Not having an HOA for a shared unit property would a concern for me, mainly because there will likely not be a reserve account for maintenance/repair items, since there aren't any dues. Thus, if something crazy happens and needs to be repaired, who knows if the other responsible owners will have the funds to split the bill.

I'd very much caution my clients if they were to find something like this.  While you may save monthly, it could be a huge headache should a major issue arise.

Hi @Feifei Zhang,

The number of loans you have shouldn't effect your interest rate.  Interest rates depend on credit score, debt-to-income ratios, down payment, etc.  Rates for pure investment properties tend to be higher than those for owner occupied.  With different loans, there are different requirements as mentioned in the comment by @Jerry Padilla.

Depending on what your overall goals are, "house hacking" a multi-family property could be an option, but not super easy to find around the Seattle area.  A lot of what you may be looking for will be dependent on location, price and urgency.  

Finding a reputable lender and real estate agent who knows the area, process and programs would be my first recommended steps.  Explaining your plans and knowing what you can afford or if your plan will work, is crucial before you get too far in the process :) 

Hi Dietrich,

I’m not sure I completely understand your question. By getting licensed in CA, you will only be able to practice real estate on behalf of others within CA. To do so outside of the state, you will need to be licensed for those individual states. To practice for yourself, you do not need to be licensed.

In regards to being a fiduciary, yes, there are no geographic bounds. A lot of what agents do to provide representation to their clients requires a high regard for ethics. Those agents who do not hold those values show themselves quickly in our industry and gain a reputation even faster. 

I would never let anything whatsoever (geographic boundaries, beliefs, experience, etc.) cloud my integrity or fiduciary responsibility to a client, fellow professional or simply, person. 

State law will dictate what is required to be disclosed and is something that should be followed. If you ever have any questions, your managing broker or designated broker would be a great person to consult.

Hope this helps?

The Real Estate professional/agent in me says, yes, always do an inspection.  That obviously depends on your level of willingness to deal with problems should they arise.

For a 500 sq ft condo, there's only so many issues that can arise, but they can arise.  Perhaps write up an offer and do a 1 or 2 day inspection.  Get it scheduled before even writing the offer.  

The typical hold up with closing timelines comes from the financing aspect, not the inspection.  Typically bank underwriting and the appraisal, depending on where the property is and how busy they are, is what can take a while.  Being pre-qualified and personally underwritten (should your lender offer this), speeds up the process tremendously.  I have lenders who can close in as little as 2 weeks given the borrower is already underwritten.

Hope this helps?

Nope. I bare the cost of all my branding, marketing, signage, etc. I’ve never heard of a broker paying for it. Firms generally provide A-boards for checkout on a first come, first serve basis but they won’t have your name and contact info on it. This has been my experience in my area, curious to see everyone else’s input. 

Hi @Jackson Long,

Forecasts when taking into account projections for the U.S. economy over the next few years tend to be bullish.  We saw a bit of a slow down in our market this past winter, but that was mostly expected.  We still remain at low inventory for the region and have seen buying activity pick up since earlier this year.  As more people are priced out of the major cities (Seattle, Bellevue), they've been looking a little further out, to areas such as Renton, Federal Way, Auburn, Tacoma, etc.

From the data I have, I'm not sure we're going to see a drop in the market, however, I don't have a lucky 8 ball (wish, I did).  That said, continued appreciation I don't believe will come at the rates we've seen the past few years.  We saw hand over fist buying activity mainly due to an influx of money from other countries, but that has lessened because of new regulations.

With interest rates remaining low, buyer applications up, and inventory staying low, it remains a sellers market for the time being.  Should you decide to sell, pricing strategy is becoming extremely important to generate enough interest in properties lately.  Because some homes are staying on the market more than usual (compared to the last few years), buyers are having more choices to pick from.

Hi Jim,

I’d say it’s a toss up for what advice you may receive. I’ve had clients who have sold parts of their portfolios within Seattle city limits and 1031 exchange to other areas of WA or  out of state. I’ve known others who are OK with the ever changing laws because they’ve had long time tenants or ways of renting to friends / family members, reducing risk and liability. 

There’s other good, rent friendly areas which will continue seeing good appreciation rates and without the same headache the Seattle laws provide. 

That said, there’s ways around most everything, it really just depends how much time and effort you’re willing to spend managing the property. 

Hi Eugene,

Montlake is a great location.  It's close to everything yet quiet and charming which is an attraction for those wanting to live in the area.  You'd have no problem renting out the lower unit.  The nice thing here is that it's a legal duplex and has separate utilities (electric) and appliances.  Didn't see anything listed in regards to separate water or sewer, just electric.

To the question of whether or not it's a good investment, that would all depend on your strategy and what you're looking to accomplish.  If having some extra income to help with the payment is what you're looking to accomplish (house hack), this could be a good candidate.  If you're looking to cover more than half of your mortgage via the downstairs renter, I'm not sure it'd make sense.

Ultimately what makes a good investment, is whether or not it's meet your criteria, risk analysis and hits your numbers.

You'd have no problem renting both units out, or one.  It appears that both are currently rented and have been so since it was permitted as a duplex in 2013.