All Forum Posts by: Sean Smith

@Allan C. no changes were made to lease termination guidelines with EHB 1217 from what I've read

@Allan C.

I agree. I don't think this will have a huge effect on WA investors' portfolios unless they haven't kept up with market rents.

I've been working in the CA real estate market since 2015 and have seen how new investors can get nervous and give up. This new WA legislation will actually create chances for savvy, experienced investors - especially in the current stage of the economic cycle.

Good buying opportunities are coming soon.

@Miller McSwain I have some experience running this strategy here locally in the Seattle Metro, as well as helping a few clients execute this strategy. It's a great market for co-living / rent by the room. Happy to connect anytime and share my learnings.

Hi @Lindsey Waltz I source both on and off-market opportunities for my investors in King, Snohomish, and Pierce counties. Shoot me a message of what you're looking for and I'll keep an eye out.

Of course - I have a few colleagues who do this here in the greater seattle area, happy to make an introduction and you can see if it's a good fit. Will PM you.

@Reed Lederman Running a practice with a growing family is quite the feat! Out of state turn-key providers can help you get your foot in the door to owning investment real estate passively. I have tons of clients that have done this.

Another option is investing locally & passively in syndications. An example, you could be a "limited partner" and provide funding towards a deal run by a "general partner". You'd receive monthly income as well as a lump-sum payout at disposition a few years down the line. The benefit here is you could go see the properties you invest in locally, but have no role in the management of the property whatsoever. 

Over the weekend Washington State Legislature passed controversial rent control measure EHB 1217. It is now out for signature with Governor Bob Ferguson.

For anyone who owns investment real estate in Washington, make sure to read up on the details. If there's information I missed please chime in the comments below.

Residential Housing:

- No rent increases within the first year of tenancy.

- After the first year, yearly rent increases are capped at 7% plus CPI (up to 10%).

- 90-day notice required for rent increases.

- Rents can increase beyond the cap in between tenancies.

- Month-to-month leases cannot differ by more than 5% from term leases.

Manufactured/Mobile Homes:

- No rent increases in the first year of tenancy.

- After the first year, yearly rent increases are capped at 5%.

- A one-time increase of up to 10% is allowed if the tenant sells the mobile home, with prior notice.

- Move-in fees capped at one or two months' rent (if a pet is involved).

- Late fees are tiered based on consecutive months of late payment (2%, 3%, 5%).

Exemptions:

- Buildings under 12 years old, public housing, nonprofit organizations, and owner-occupied duplex, triplex, and fourplexes are exempt.

- Real estate investment trusts, corporations, or LLCs with corporate members are not exempt for residential properties.

I'm curious if anyone here feels this will meaningfully affect their portfolio. How are you adjusting strategy going forward, if at all?

Hey @Jake Mendoza the BRRRR method has a lot of steps involved - not to say it's not possible - but more so have you considered trying to do it locally in LA county vs. out of state?

I'm originally from the Santa Clarita area and know for a fact there are sub-$500k deals up in Canyon Country, Palmdale, Lancaster, etc. Might be easier to manage your first construction job within an hour or two drive instead of out of state.

@Gonzalo Villacorta welcome to the BP community! 

When starting out it's important to work towards one concrete, attainable goal. That could be your first flip, you first rental property, etc. It's easy to get overwhelmed by the many many shiny objects in real estate. The hardest part is just getting started.

My advice:

- Identify your real estate strategy

- Identify your target area

- Connect with/build your team of brokers, property managers, GCs, lenders, and other investors

- Practice running numbers and bounce them off your team

- Make lots of offers!

@Hisac Lucas welcome to the community! Great resources and experienced investors in these forums. Best of luck getting started!