All Forum Posts by: Robert Kurka

Hello,

I'm an investor based in Seattle seeking opportunities in markets that offer positive cash flow. I'm looking to connect with an investor-friendly broker who has deep knowledge of the area and can identify cash flow-positive investments that yield solid returns. Specifically, I'm interested in exploring options that align with a 25% down payment and Debt Service Coverage Ratio (DSCR) loan.

If you're a seasoned broker familiar with Birmingham real estate and have a track record of success with investment properties, I'd love to connect. Please reach out so we can discuss potential opportunities and strategies.

Thank you!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $500,000
Cash invested: $150,000
Sale price: $965,000

This was an amazing fix and flip I did. The net ROI was 31% with a profit of $226,879.

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

Easy flip with large profit

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

We found this off market in pre for-closure

How did you finance this deal?

Hard Money

How did you add value to the deal?

Completely transformed the landscaping and home.

Lessons learned? Challenges?

Make sure materials are not back ordered this will cost you time and money

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

I am a real estate broker

Happy to lend a hand, I  have done very well with duplex investing mixed with MTR's 

Your house is for sure priced right. 

It's all about affordability and the average household income is only about $75,000 in Ferndale. This means their income is $6250 a month.  The mortgage for the home you selling at is a monthly payment of $6,350 a month. That's more than most people can afford. 

  Just be patient and it will sell. I just got a new buyer pre-approved at 6.43 interest last week so we are close to this market getting very busy.

Without land, you can get a slightly bigger house for around 550k in Ferndale 

FHA USDA and VA loans all have the best rates right now.

Using a Real Estate agent and brokerage with a large network of buyer agents helps a lot. A company like Compass or Keller Williams will expand your network to the whole brokerage. 

www.compass.com/listing-presentation/view/cma/cma-141d7401-f...

You can use the bigger pockets platform to calculate your numbers with AirDNA. I have several MTR and STR properties and the numbers are usually within 20% + or - of that data. You are only allowed one Airbnb in Seattle and you will be required to set up an LLC and get a business license in order to list your property on Airbnb. Seattle is highly regulated when it comes to STRs.

I am happy to connect and answer any questions you might have.  

Hi, I am a local Investor and broker in the greater Seattle area. My primary business is fix and flips. I was in a similar situation when starting out, my credit score was a little low and also owned a rental property with equity. 

Here is the problem with leveraging your equity with a HELOC. You're going to be borrowing your down payment at probably 9% interest if you qualify. Then you're going to leverage that equity into a Hard money loan at best 2 points origination fee 11% interest with 10% down on the total project with renovations. If for some reason you don't make money or lose money you still have to service the 2 loans and you leveraging your STR money maker to do so. That is very risky, but achievable if you really know your numbers.

The advice I  recommend is to be patient till you have the capital to comfortably afford the 10% down. So if the project is all in 650k with purchase and rehab you need about 80k to do the project comfortably. I also advise you to focus on your credit score. Your credit needs to be at  650 or higher to get approved for most hard money financing at a decent rate.  

I also highly recommend looking into a partnership deal, where someone with experience and/or lots of capital is willing to share on profit splits. Structuring a deal where someone else funds it is a great way to get going.   

Let me know if you have any questions and I am happy to connect.  I can also help find you a profitable flip deal if you are  interested.   

Hi, I am a local Broker and investor in the greater Seattle area. The value of owning real estate in greater Seattle is in the appreciation and depression. You get close to 7-10 % appreciation a year in western Washington, You also get 3.63% depreciation a year saving on your W2 income. The longer you hold it the more you make.   

I think a 4 plex has a tremendous amount of value when you look at a STR or MTR models. Turning all the units into STR rentals or MTR rentals will maximize cash flow.

So you have to ask yourself, What is my interest rate? What is my cash flow? What's my appreciation over 5 years and what's my Depreciation over 5 years? When you run a 5-rear performance plan am I making money? Do you like being a landlord? 

If you making money but hate managing it then it might be time to look at a property management company. If you are losing money over 5 your performance plan then it might be time to look at other creative ways to increase cash flow or get out. 

If you're looking to sell to expand your portfolio and use your equity for an 8-15 unit apartment building then it is definitely worth looking at selling, a 1031 exchange is the method for that.

Let me know if you have any questions and would love to connect  
 

STR and MTR are the best methods to still have cash flow where interest rates are at. I do recommend staying outside of Seattle to scale your STR and MTR methods, that's due to heavy regulations in Seattle.

I personally have a triplex In Edgewood WA, I run all three units as MTRs. The cash flow and income continue to exceed all expectations. The cash on cash returns, when you FHA owner-occupied for a year, is the best way to leverage your down payment. I also recommend reading the book (30 Day Stay) the author is from Seattle and makes great points about the benefits of MTR vs STR.

Airbnb and VRBO have a calendar link where you don't need to use platforms like Gustily. You won't need a third-party platform till you have a large number of MTRs and STRs. I highly recommend outsourcing the cleaning and turnover and managing the rest yourself. If you need a recommendation for cleaners let me know, the company I'm using does a great job.  

Let me know when you are ready to find another property or if have any questions in general would love to connect.  

So the thing to look at in the greater Seattle market is supply and demand. With limited supply (due to mountains, lakes, and sounds) and growing demand, this is a great market. On average houses in greater Seattle appreciate at a much higher rate than the other 2 markets you looking at. When you run a  5-year proforma in Seattle the 7-10% appreciation and the 3.63% deprecation a year really adds up. 

Cap rates are lower but your equity appreciation is more than double compared to most markets. So you have to ask yourself what's more important cash flow or equity appreciation gains. 

FHA Loan houses hack on multifamily is what I recommend for the Best cash-on-cash returns to get started. Let me know if you want to connect if you interested in the greater Seattle /Tacoma market

Hi Hansel.. 

South of Seattle  has better appreciation numbers and better cash flow numbers than anything you can find in Bellevue or Seattle. 

Also, there is no Airbnb restriction and no rent controls down south. 

Seattle has made it very hard to scale an MTR's and STR's Multifamily Business ( This strategy has the best returns )

A great option to look at - 912 Algona Blvd N, Unit A & B Algona, WA 98001

Here are the numbers on a great option available. 

One side is vacant so you can move into it. and do FHA 3.5% down ( live there for 1 year )

The Mortgage on this would be Around $5000 a month ( see attachment )

You should be able to rent one side for around $2300 a month for a long-term tenant  ( see attachment )

Airbnb has the potential for $3000 a month 

Eventually, you could convert the garage into a 3rd unit / you can build a DADU in the front when the laws change

Close to Tacoma

https://mail.google.com/mail/u/0?ui=2&ik=08cd75cd92&...

https://mail.google.com/mail/u/0?ui=2&ik=08cd75cd92&...

https://mail.google.com/mail/u/0?ui=2&ik=08cd75cd92&...