All Forum Posts by: Sean Ku

Will this help? https://www.biggerpockets.com/...

I am confused because 1) if there was no will, then a probate proceeding is required in Texas, 2) Texas is a community property state. If the husband dies, his share goes to wife… 

I recommend you consult a probate or estate planning lawyer. I don’t think a real estate lawyer can advise you on this matter, imo. 

Lastly, I think this is a very risky deal. 

$2500 seems ridiculous. If I were a roof company owner, I would do it for cheap so that you would come back to me and ask for roof replacement. Short term thinking in any sort of business hurts 

They are clearly not doing their job. Nowadays you can easily compare the market rate rental on Zillow, Trulia, and Facebook Marketplace. 

If houses do go out on lease fairly quickly (within 2-3 weeks) with the listed price and comparable comp, then that’s the competitive market rate. 

Property management firms should also be incentivized if they’re getting a % of total rent so I am as perplexed as you are by their recommendation. 

I would look into other property management firms in the area by doing your own research. I am glad you’re able to secure yourself a new tenant because we are talking about $5k in annual cash flow. 

Originally posted by @Vic V.:

@Michael Haas, @Curtis Bidwell thank you for commenting. 

Note: for the purpose of this question I'm focusing on the Eastside [ Bellevue/ Kirkland/Redmond] region. 

I ran a quick rentometer search for a 5bed /3ba house in the 98034 zip code(Juanita) and it looks like the median rent is slightly less than 3000. This means that with 20 down on a 900K house, the house is likely going to flow negative if rented out as a whole. This is without taking into account new housing construction in the area. Does that leave any room for rental appreciation?

What am I missing here?

For your reference -  I rented out my Bothell home (bought at $465k) at $2600 in June 2016. I am currently trying to rent it out for $2800 (~$630k value) in Feb 2020. If you move to Lynnwood / Bothell, you will be able to find something ~$600k and rent it out for $2800 to $3000 during summer months. Just be aware that the property tax has also gone up from $4500 to $6200 in those 4 years for my house.

I read an article that Seattle is actually the worst payoff for landlords based on the ratio of housing price to rent. 

I agree - there is absolutely no reason to buy if you don’t plan on living there for a very long time. People perceive their monthly rent as a throwaway which is not the case. Being a homeowner or landlord is not cheap and maintenance could be a headache for many. 

A lot of people rent and the rent will continue to remain stable just based on new construction. I’d totally rent if I have to get a place around Redmond / Kirkland.