All Forum Posts by: Ted Klein

@Adrian Chu Thanks for that bit of advice. I will look in that direction.

Hey Everyone, I am looking for information on where I can find parcel zoning codes for Multi Family properties in the Seattle / Puget Sound Area. I have been looking at the county websites for King, Pierce & Snohomish counties and I am still not finding the exact zoning codes I need to be looking for to determine whether a property is truly a conforming property.

I am particularly interested in Pierce & Snohomish counties. I have found where to locate the recent sales, taxes and whether permits have been pulled on the properties, but I am having a hard time finding the zoning codes for MF properties.
If anyone could help me find these or knows what the codes are that I need to look for it would be helpful and greatly appreciated.

Thanks,

@Mike Hanneman

I specifically spoke to my banker about it being investment property and the 3.5% rate with 20% down is what I was quoted on the pre-approval. I even inquired about how many investment loans I could obtain with them and was quoted 4 loans as expected. Just to be sure, I applied to two other bankers as well and each one quoted me the same rates. I have no debt and an 840+ fico, so getting the low rate wasn't a problem.

@Patrick Britton

Well after doing my due diligence, I have determined that maybe it wasn't such a good deal after all. The property is technically a condominium. I was told that Fannie Mae conventional financing guidelines will not allow more than 50% of the units be owned by one individual. Additionally, since both units share one water line and meter. Units can't be sold individually without running another water main and installing a water meter. The owner received estimates on this project (around $10,000).

Just keep looking now...

Congratulations BP and thanks to @Joshua Dorkin for making such an awesome site. SO glad to have these resources available. Keep the awesome content coming. You guys rock!!

Hello Tim, Welcome to Bigger Pockets. I too used to live in Lake Worth near Lake Osborne. Glad to see you have signed up and joined the BP community. I have been looking at some properties in LW and the surrounding area. What is your opinion in the market there now. I previously had a triplex there and did quite well with it so I am considering investing in that market again.

Cheers,

Thanks for the reply @Patrick Britton, I have searched the county records and can't find that any permits were pulled. What impact does this have on the deal?
In regards to item 2 above: I am pre-approved for the conventional financing just wasn't sure how to get around the sellers request for a cash sale.

The question about using a hard money lender was to get around the sellers cash sale request thinking that I could get a short term hard money loan to close the deal then do a cashout refi to a conventional mortgage. I like the idea of making the offer not contingent on getting financed. Since I am already pre-approved for well over the asking price, this shouldn't be a problem should it?

Yeah, not sure why the taxes are so high, I had already checked the county site and verified that was the amount.

I have a request in for the rent rolls and the lease information, payment history, security deposits etc... Hopefully this info comes back with good news.

Thanks for the advice!

FYI, These expenses are taking into account a 30 year fixed, 20% down 3.5% financed loan

Cheers,

Ted

Hello Fellow BP'ers,

I'd like to reach out for advice on a potential deal I have found. I have ran the numbers and it appears that this is a good deal. This is Two Townhomes sold together as a DUPLEX. Each unit is 2 bed/1.5 bath and attached garages on separate parcels that has recently been remodeled. The pictures both inside and out look very good so I have not accounted for any initial repairs as it has recently been remodeled and it is currently occupied.

Asking Price: 275000

Problem is they are asking for cash sale only and I fall just barely short of having enough to pull this off and still have a comfortable reserve. This is in the Seattle market and is a very competitive market so there will likely be multiple cash offer bids.

My question is:

1. Is this a good deal?
2. Should I be looking for partners or should I be looking for hard money lender's to get the deal done and then do a cash out refinance after I close?
3. Any recommendations for good hard money lenders in the Seattle area?
4. Do I need to talk to my banker to explain the deal and ask about a cash out refinance without a seasoning period?

I have been pre-approved for my loan and have excellent credit with a very low debt to income ratio so I wouldn't think getting approval shouldn't be a problem with hard lenders or closing on my pre-approved loan. Any tips on ensuring that my bid is accepted, other than escalation clause, short closing, quick inspection period, etc...

Not really sure where I should be looking to move on this deal. I have never worked with hard money lenders so not really sure how to proceed in that direction.

Cheers,

Ted

I'd recommend against it, keep it strictly a business relationship, as soon as you start being friends with them they will start asking for leniency in paying rent. Speaking from experience, I wouldn't go there.

I know this is an old thread but I am hoping that more people may have some updated input on the Home Union process and whether good deals can be obtained through their services. I am a new investor and am looking at the out of state markets since the properties in the Seattle area are so high. Are the expenses they list: Rehab Costs, Loan Fees & Costs, Closing Costs, Maintenance Reserve and Stabilization Estimate generally within normal expectations? Just looking for options to get into REI and thought this may be an option for a first property. Any advice would be greatly appreciated.