All Forum Posts by: Shain Cannon

Looking for my first CPA.

Anyone on here local to North Seattle? Or recommend anyone?

Thanks!

@Eric Huang

I am currently talking with north west plus credit union and they are offering 90# assessed value minus 1st mortgage at 6%.

Not sure what keywords to use to search this, so ill make it quick.

What is the strategy to return capital invested into the down payment on a rental property? Non BRRRR

Example:

Purchase price $325,000

20% down is $65,000

The only strategy I can think of is wait for the house to appreciate and either Cash out refi or HELOC to get capital for the next deal.

Originally posted by @Megan Shay:

@Shain Cannon you should at least jump aboard the ferry. ;-) Food for thought: twice. Never seen 'em on I-5. Yes, Brandon started out around here, and further west (Hoquiam, I think). Anyway, depending on the specific area, prices tend to run more like $300-500k for an "average" single-family home. Compare to $700-900k and $1.5M+ in Mercer Island and Bellevue. 

There is a very strong rental base with the Bremerton naval base and the submarine base at Bangor. Tenants tend to be in the higher income brackets as you go north. Bangor = more specialized, higher paid folks. Bremerton = younger, lower-ranking. Healthcase is huge here also with Harrison in Bremerton and the new/expanded hospital in Silverdale. The Seattle commuters have increased also since COVID. Used to be mostly Bainbridge folks, but it seems to be more varied now. 

FWIW, I came from Mercer Island to Poulsbo 3 years ago and I'm very happy with that decision. It's beautiful over here! And I still work on the other side of the pond, too. 

Poulsbo & Liberty Bay

 I actually found a duplex in Hoquiam that the numbers look fantastic on. I have a friend over there that actually stopped by on his way to work yesterday and poked his head around, he said it was not in an awful part of town and only 3 minutes from down town. So im thinking of pursuing it, even though I know little of the area. Only scare is it was built in 1910 and has low rent tenants at $650 each, so if i were to fix up the property and raise rent it would cash flow nicely. There were 2 others in the area that were around the 200k mark and of the same vintage.  

Very interesting perspective, and you may be on to something here. With all of the newer work from home possibilities the need for housing on the east side has definitely seen a huge drop. I am curious to see how the market across the pond fares in the upcoming years...and maybe I too should jump aboard the train. My current room mate (house hack in Everett) works for tech industry and has been working from home since April, and he has no sigh of going back to the office. He was looking into buying a house, but due to many factors has stopped looking, one of which is that location no longer matters for him. And many others in the tech industry. And with housing MUCH more affordable over there now may be a good time to invest over there, I can tell you i have all but given up on SFH and MFH on this side of the pond as you cant touch an SFH for under 300k or a duplex for under 500k, and good luck even coming close to the 1% rule. Worth noting that Brandon cut his teeth in your side of the pond...but if I'm correct that was almost 15 years ago ha.

@Kevin Hunter that makes great sense. Thank you.

I have heard multiple times on the podcast and from other investors that it should be common sense to assume that if someone is selling a property (multi family or otherwise) which is occupied and cash flowing, then something is likely wrong with the deal. Tenants not paying, larger Cap Ex coming due, ect. This makes perfect sense to me and I agree. However what is the consensus when it is a corporation that is selling the property such as Coldwell banker or "insert here" realty? Does the same thought process apply? Or what other factors would contribute to a corporation selling a property that is making them money (or at least should be on paper).

You're right. I like these numbers. Even if this proprty wont cash flow at first, it would be silly to sell. And after doing some hunting around, the taxed assesed value is going up to 430,500 in 2021...which is only 2 months time. I can get a HELOC on 100% of the tax assessed value or 80% of the assessed value. With owing 328k and some change that will give me access to 100k. So that is the current plan! plus i don't have to move, or give away tens of thousands of dollars.

@John Erlanger

Correct. I took cash out to rehab the house. Increasing the value. I can only guess as to what the value would be if I hadn’t rehabbed. Much less though.

The concern I have is the appreciation is great and all, but only if I sell correct? Or I can HELOC. But those are the only 2 viable option I see for accessing the equity I have accrued.

@John Erlanger

Oh I still owe 330k on the property. All the calculations I’ve run say I’ll be loosing money if I rent it for 2700. Where as if I sell it I can use that as a down payment on a property or 2 that I can make money off of.