Real Estate Weekly May 7, 2021

INSIDE

This Issue

IS LANDLORDING STILL WORTH IT? WHAT TO CONSIDER BEFORE INVESTING IN A RESIDENTIAL RENTAL PROPERTY PAGE 5 COST CONTAINMENT ON NEW CONSTRUCTION PAGE 7 CLASSIFIEDS PAGE 7

MAY 7-13, 2021

INSIDE

TABLE OF CONTENTS

PAGE

5

Is Landlording Still Worth It? What to Consider Before Investing in a Residential Rental Property ..........................P5 Q&A

Ask Our Broker.......................................................................P6

Cost Containment on New Construction..........................................................P7 Classifieds............................................................................P7

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May 7, 2021

STAT Real Estate Stat

$329,100 The median price of homes throughout March 2021 Source: National Association of Realtors

NORTH PUGET SOUND ASSOCIATION of REALTORS®

Feature Home From cover:

525 East College Way, Ste J, Mount Vernon, WA 98273

3914 Cottage PlaCe, anaCortes

Tel. 360-416-4902

www.npsar.realtor

$659,000

SPEAK UP - STOP DISCRIMINATION Washington Law Against Discrimination protects people from negative housing actions that occur because of their protected class. In the Sale and Rental of Housing: No one may take any of the following actions based on a protected class:

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boats from this beautiful, 3 bedroom, 2.5 bath, craftsman style home.

High quality custom finishes with extensive use of natural wood. Hardwood floors, granite counters, central vacuum.

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Mission Statement: The North Puget Sound Association of Realtors advocates for Realtors and their clients, and promotes the protection of property rights.

MLS: 1760207 97239-1

May 7, 2021

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Now could be the time to sell a new home and earn a slice of the real estate pie.

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Record-low interest rates and record-low housing prices are renewing interest in the floundering housing market for many people.

“When sellers are interviewing real estate agents to market their homes, their primary focus is usually on the advertising that the agent will offer them,” says Jessica Goodbody of Weichert Realtors.

Let us help you meet your marketing goals by advertising your listings in Real Estate Weekly.

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p d r k c o r M r l r a

h l n w t r May 7, 2021

and outsource the debt obligations and interest in the form of collected rent from your tenants.

Each year, your rental fees can be increased while the property depreciates, yielding tax savings, and the asset depreciates due to asset values and market trends,” notes Luke Smith, a landlord, home flipper, and real estate expert in Louisville, Kentucky.

The downsides, of course, “are that you are responsible to pay back the loan you took out from the bank and you’re liable for each tenant’s safety. Your tenants will make or break the investment; if they don’t pay, you have to evict them and get the unit back in shape for another tenant to move in. Vacancies equal lost income.

Your lender doesn’t care whether or not your tenant paid – they just want your mortgage paid back each month.”

Good candidates nowamoratoriums on evicproperty values have “The long-term oppordays for being a landlord tions, leaving landlords tunities with real estate also increased during the are folks who can stomlittle recourse and loadwill always be there. No coronavirus crisis. So ach the ups and downs of ing their ledgers with red owning real estate and matter when you purreal estate for at least five chase property, there will ink. renting out property is years per property.

Fortunately for them, still a good thing, so long be challenges that come “That’s a good amount your way. But if you see the current federal mora- as you can cover your of time to build equity torium on evictions is mortgage independent of it as a long-term focus, and increase rents, which due to expire on June 30 rental income,” explains owning rental property will allow for decent cash of this year. But if coro- Reiner. “The demand for can be a smart business flow,” adds Smith. “If navirus numbers climb decision – especially if rentals is also likely to you are willing to take on again, the Biden adminis- increase post-pandemic you are detail-oriented, the risk and hold an asset tration and state govern- once these moratoriums can fix up a property for that period, you’ll ments may extend this yourself, have the money likely do well with the end and evictions and deadline. And that begs to purchase a property, foreclosures come into investment, provided you the question: Is being a and care about your ten- manage the property well play.” landlord still worth it?

Count Eugene Rendel, ants,” he says. so that it can retain its But don’t kid yourself: value.”

Omer Reiner, a Realtor who recently became a Landlording is hard, and home flipper in Fort first-time landlord in Andrew Ragusa, CEO/ Lauderdale, Florida, says Sheboygan, Wisconsin, as stressful work, and sucbroker of REMI Realty in cess is not guaranteed. yes. another true believer in Plainview, Long Island, “The upside is that you New York, says his recipe “Although collecting rental ownership, despite can buy rental property rent has gotten harder, for success as a landlord current challenges.

Is Landlording Still Worth It? What to Consider Before Investing in a Residential Rental Property

By Erik J. Martin he past few years were good to many rental property owners. Tenant demand increased, as did rental rates in many markets. Many millennials chose to kick the homeownership can down the road and lease properties.

Meanwhile, mortgage rates dropped, allowing landlords to purchase and refinance more affordably.

Then the pandemic happened. Suddenly, leaseholders across the nation faced hardships, with many being unable to pay their monthly rent. Governments issued

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May 7, 2021

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of multiple properties is to purchase a diamond in the rough fixer-upper, rehab it to bring up its equity value, rent it out at top dollar, refinance to pull as much equity out as possible, and repeat the process.

“Look for properties that have landlords seeking to exit the game after collecting for long periods of time already. And try to hire a good property manager, especially if you are out of state or the property is too far away,” he advises. “Having great management is key.”

Consider near-and long-term rental trends as well.

“The future of renting may look different after the pandemic ends. If work-from-home trends are here to stay, demand may switch from big urban centers to suburbs and cities with a lower cost of living,” notes Reiner. “Demand for increased living space rather than shared amenities is also likely to increase. Be sure to study the housing trends in your area before purchasing any rental property today.”

Lastly, before committing to the landlord life, consider what else you could do with the money.

“Real estate is hard to get out of, so think carefully about investing the money elsewhere for a decent return if you can get it. If you are committed, be sure to have enough funds to ride the ups and downs of the market as well as capital for repairs and maintenance,” Smith recommends.

5

Keeping an eye on credit Question:

What’s the best way to improve a credit score? Not just pay on time, pay in full, and pay down balances, but something that can directly cause scores to rise?

Answer:

Credit is a major issue for virtually all adults. Good credit means high credit scores and low interest rates when borrowing. Bad credit means higher costs and potentially declined loan applications for such things as homes and cars.

What’s the secret to higher credit scores? It’s simply credit awareness, understanding that every bill and payment potentially impacts your credit standing.

Let’s start with an extreme situation. Millions of people have no credit history and thus no credit score.

“Nearly 50 million Americans lack enough of a credit history to obtain a traditional credit score,” explained the Urban Institute in 2018. “Some 28 million consumers have files with insufficient data, and more than 20 million have no credit bureau file at all, or are ‘credit invisible.’”

Translation: If you want cheaper financing, you need at least need a credit profile, one with the highest possible score.

There are several concrete steps that can help bulk up

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your credit situation.

First, you need to establish a budget. Look at what you earn and track what you spend. Do this in writing, so you can see how your spending habits evolve over time.

Second, you need to have ready cash on hand for emergencies, otherwise you may wind up borrowing from payday and auto title lenders. It’s been estimated that the typical payday loan is about $400, so make that an initial goal. Put $10 a week into a savings account and watch your money grow.

Third, you need to get into the system. If you are now credit invisible, start with a basic gasoline or store credit card.

Fourth, spend a little every month on the cards you obtain.

Fifth, the old standbys really work. Always pay a little early and in full, so your credit score can improve and you can avoid onerous late fees at the same time.

Sixth, you can track your credit standing at AnnualCreditReport.com, the only site authorized by the federal government to provide free credit reports.

Under federal rules consumers can receive one free credit report every 12 months from each of the three leading credit reporting agencies (CRAs), Equifax, Experian, and TransUnion. However, last April, in the

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Q&A

ASK OUR BROKER

By Peter G. Miller

midst of the pandemic and with so many people losing jobs and receiving less income, the three CRAs made an unprecedented offer. Consumers who go to AnnualCreditReport.com can access their credit reports on a weekly basis without charge for one year.

Now, in 2021, the three credit reporting agencies have again stepped up. In March, they announced that free weekly credit reports will continue to be available through April 20, 2022.

The information contained in credit reports is the basis for credit scores. The higher your score the less it costs to borrow. It’s important to review credit reports regularly to see if there are any factual errors, items that are out-of-date, or strange items that might suggest identity fraud. Such things happen and when they do credit scores can be significantly reduced. A 2013 study from the federal government found that “one in five consumers had an error on at least one of their three credit reports.” Errors typically caused credit scores to fall by 25 points, but in some cases, scores were reduced by 100 points or more.

The temporary credit access policy now in place is a great deal. It’s free and can help you get a better score.

Use it while you can.

Email your real estate questions for Mr. Miller to peter@ctwfeatures.com.

May 7, 2021

Real Estate Weekly

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CLASSIFIEDS REAL ESTATE FOR SALE Houses for Sale 2 bedroom house for sale - Livable, fixer-upper, some land in Hamilton. $119,500. Call 360-7705686 or 520-221-1607

RENTALS Apartments Unfurnished

NEW TODAY Alpine Ridge Retirement Apartments in MV is accepting applications for 2 Bdrm apts. Income limits apply. 360-424-9622 for more info.

Cost Containment on New Construction

By Marilyn Kennedy Melia

W

ith demand high and supply low, buyers on a budget face increasing challenges finding the right home at an affordable price.

Those whose hearts are set on new construction face even greater challenges, with pricing also escalating from climbing costs for supplies like lumber, paint and flooring.

Indeed, in March, the National Association of Home Builders calculated that 60 percent of U.S. households wouldn’t qualify for a typical mortgage on the purchase of a median-priced home.

Pinning a price on an un-built home is always difficult, and now, buyers should be especially careful ascertaining the end costs.

May 7, 2021

Here, some tips from experts on how: • Price tags are set.

Unless there’s a market downturn or a particular community is distressed, the prices can’t be negotiated, says Jeff Benach, of Chicago-based builder Lexington Homes.

• Add-ons add up.

“Avoid getting starry-eyed about upgrades, and insist on line-item lists of what you’re ordering,” suggests author and attorney Ilona Bray.

Adding extra square footage, like opting for a finished basement, can carry sneaky future costs, notes Carla Gorman, of Baird & Warner, Chicago, since “those areas will be assessed as livable square footage.”

• Looking now at future taxes.

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Unlike purchasing an existing home, where the property tax bill is known, an un-built home isn’t even assessed yet. Look for the builder to provide a tax estimate based on “replacement cost,” Westmont, NJ real estate attorney Renee Bergmann advises. That means the value is projected as the cost per square foot to replace the structure along with the price of the land.

That replacement cost figure could be higher than someone is paying, especially if the builder is offering incentives to buy in a community.

For those worried about tax bills, an extra step is to talk to the local assessor’s office, asking if the estimate looks plausible, concludes Bergmann.

Business Property

NEW TODAY LA CONNER RETAIL FOR LEASE 128 S 1st Street La Conner, Washington 98257 Historic Pier 7 on 1st Street; Waterside with Boardwalk access. Two spaces available. Monthly rent includes water/sewer/ garbage; building taxes and insurance. SEND INQUIRIES TO: pier7laconner@gmail.com or call 206-546-09

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60102 state route 20, MarBLeMount

$777,000 18582 CasCade ridGe Ct, Mount vernon Mondo Restaurant has a newly remodeled kitchen with beautiful, new appliances. Great work space and tremendous storage. Public area offers very spacious seating. There is also an outside dining option. Small gift shop area. Chef creates incredible and varied menu, both nutritious and delicious. Restaurant is situated in a beautiful location in the Cascade foothills.

Well worth a day trip. MLS# 1757641 Sherry Ruderman

Danya Wolf

360-540-1552 360-708-8294

2xxx urBan avenue, Mount vernon $600,000 Prime commercial property with utilities in street, including P.U.D. water, Puget Sound Energy electricity; Cascade Natural Gas, fiber optics; cable; and sewer. Subject To survey and short plat. Property is located between Chicago Title Company easterly parking lot and Max Dale Restaurant’s south easterly parking area.

360-708-8294 MLS# 1649968

Lots 2&3 Lakeside drive, GLenhaven Lakes

45153 kokanee traiL Lot # 3C3

44947 kayak traiL #2B36, ConCrete, Wa 98237

Danya Wolf

$48,000 63377 hiGh ridGe dr. #d3 L115, MarBLeMount $60,000

What To Bring: Wine/Spirits, Snacks, Food, Clothes, Firewood TURN KEY! Sweetest vacation spot located at Lake Tyee. The trailer has a bedroom and bunk beds for the littles. Every little detail of this property is absolutely adorable; from the renovations of the trailer to the cozy deck, engaging yard and firepit area. COME Sherry Ruderman QUICKLY! YOU WANT THIS ONE! 360-540-1552

NEW PRICE Sunny, nice quiet street located in Cascade River Park.

Pack your bags cause she’s ready to go. Turn key with trailer, covered deck, storage sheds and lots of room for parking and tents. This lot is ready for you, family and friends to enjoy this summer.

Sherry Ruderman MLS# 1754582 360-540-1552

i’m a seniors real estate specialist

Every transition is an opportunity, regardless of your stage of life. By partnering with an SRES like one of us, you gain the help and experience of a Realtor® specializing in meeting the needs of home buyers and sellers 50+. We offer you the opportunity to complete your transaction with patience, professionalism and the expertise you deserve. We are pleased to be Carla Fischer Elva Hunter YOUR SRES® 360-982-0010 360-202-3086

$998,000

Private 5.78 equestrian acres surround this 3130 square foot custom home with elegant finish work: European hardwood floors with inlay; 3 fireplaces, one which is open to both the country kitchen and the dining room; 3 large bedrooms, two with a “Jack and Jill” bath; 2 family rooms.

Plenty of parking. 528 sq. ft. garage; 36 X 36 barn with three stables; a tack room; shop space; plus a loft. Four separate fenced areas for horses, plus an outdoor arena. Wonderful trails throughout wooded portion. Conway Schools through eighth grade. Choice of Mount Vernon High School, Stanwood High School, or LaConner High School Danya Wolf 360-708-8294 thereafter. MLS# 1742520

$49,900

W CasCade Way #L61&62, MarBLeMount $225,000

17180 MeMoriaL hWy Mount vernon $415,000

Build your dream home on these two adjoining lots near Glenhaven community amenities: pool, clubhouse, tennis/basketball courts, outdoor exercise area, playground, enjoy nature with trails and trout stocked lake, 2 boat launches, community events; near several area lakes. Easy commute, 1/2 way between Mount Vernon and Suzanne Jenkins Carla Fischer Danya Wolf Bellingham. MLS# 1628528 360-941-2983 360-982-0010 360-708-8294

Veryfewpropertiesmanagetobeautifullyintegratetheoutdoorsintotheirlivingspacebutthis cabininthewoodswilldelightyouwithwildernesssurroundingswhilecradlingyouinthekind ofluxuryyoucraveafteralonghike.LetthemagicalflowofmusicfromnearbyBoulderCreek lull you to sleep in this cozy cabin kept toasty warm with a propane fireplace. Sip wine and relaxonyourcovereddeckdowntheshortpathfromthecabinnexttothe wood fire in your cedar plank hot tub.This wonderland in the wilderness willcertainlycaptureyourimaginationwhileprovidingabaseforallyour Sherry Ruderman adventuresintheCascadeMountains.MLS#1729892 360-540-1552

6.98 acre tract zoned Rural Intermediate. Level acreage with great road access both from Memorial Highway and from Avon Allen Road. Stop light and curbs at the intersection. Special Use Permit potential.The Animal Hospital and an espresso stand is across the road to the west. 980 feet along Memorial Highway (SR-536); 620 feet along Avon Allen Road. Danya Wolf 360-708-8294 MLS# 1572330

$89,500 531 n Barker st, Mount vernon

Perfect time to snag this little piece of heaven at LakeTyee.

This comfortable park model with room addition is the perfect retreat. Imagine yourself snuggled up with a hot cup of cocoa and looking out the window as you see the giant snow flakes drop on the lake.

This is the year to do so. Beautiful properties have come and gone, but this one is for you! Sherry Ruderman MLS# 1687797 360-540-1552

4969 heLena Lane #2C78, Lake tyee

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D Enjoyy the beautiful sunsetsLfrfrom the large covered O ch of this charmingShome porch home. This 4 bed/1.75 bath charming westside vin vintage home is on a dead-end eet with a rur street rural feel yet convenient dining New laminate too shopping and dining. flooring on main floor. Roof was new in Danya Wolf Carla Fischer 360-708-8294 2016.

(360) 982-0010

$67,000 11602 PanoraMa drive, sedro-WooLLey $139,000

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Looking out to Mount Baker and beautiful territorial views with your hot cup of coffee as you sit on your quaintt ccomfy porch is just where you want to be after this crazyy year. year Startt 2021 with the per perfect get-away in the North Cascade Range brand new park model is nestled in ange FFoothills. This almost br LakeTyee Recr tional Resort.The loft gives you extra sleep ee Recreational Resor spac for or guests and ther there is plenty of parking, as well. space Y ’ll enjoy this quiet, You’ll quiet peaceful and gorgeous location. ome tak take a look for yourself. 210 days/yr and $162/mo Sherry Ruderman Come 360-540-1552 water, septic and garbage. MLS# 1716532 dues includes w

360.424.0300

$285,000

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Build your dream eam home on your dream dr property. 5 acres of

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gorgeous, maturee trees and all the county work has been done; c wetlands delinea ompleted, mitigation, soil tests and delineation complet applied, PUD and PSE on the street. septic permit applied This neighborhood is his corner lot in a wonderful w r or yyou. Call and set your appointment ready for todayy.

Sherry Ruderman

MLS# 1764328

360-540-1552

17464 dunBar rd unit #1, Mount vernon $320,000

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Enjoy this spacious condo ondo in a lo lovely ely country c setting. This end unit in a nicely has lots of natural ely maintained 4 unit complex c lightt and views of farm land and moun mountains. This home with 2 bedrooms ooms features a living room with a large brick ooms, 1.75 bathrooms f fireplace eplace and a bonus room. Freshly pain edwithnewcarpetandwindows. paintedwithnewc private single car garage.

Unit has priv MLS# 1747334 Carla Fischer Danya Wolf

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360-708-8294

8001 aCorn Lane #d1 L162, MarBLeMount

360-982-0010

$14,000

NG I DCCascade River and With the roar oar of the N E beautiful greenP surr surrounding you, this

little fixer upper is the per perfect spot for solitude. Call C today for your tour around the gor gorgeous Cascade River Park.

MLS# 1756030

3780 E. College Way, Mount Vernon

www.skagittraditionrealty.com 92613-1

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