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The Pitfalls of Rental Property

If you are going to own rental properties; you better stay on top of your tenants, because they surely will not take care of the place as you would.  Or, you would be advisable to utilize an excellent management company in order to manage your assets for you. It could possibly be costly otherwise. Like it was for my family and I. In the tune of $7,500 for each time happen. It happen 3 times on 3 different properties. So, words to the wise, be vigilant and stay on their butts.  As I indicated earlier, during this last chapter of “RAINBOW IN THE DARK”, I will be candid in pointing out my follies and mistakes, so that you do not make the same errors as I did.  As well as highlighting my successes, so that they may be of benefit to you as well. During this particular time with the company and my family financial resources. I began to diversified the financial investments into rezoning our property located at 26125 114th Avenue, right off Kent-Kangley Hwy in Kent, Washington.  Excellent location for affordable housing and light commercial activities. We were successful in rezoning the property from Single Family Dwelling into Multiple Dwellings Units.  We went from being able to have one single family unit into having six, but I put the pressure on and utilize some contacts and got 7 Single Family Dwelling Units per ½ acre of land.  In addition, to Merrick Lentz Architects in Bellevue, Washington, working miracles on my behalf.  And you know folks, I could not even pay his company then, but he did it anyway.  Now, how wonderful is that, but it gets even deeper as time progress. The property was now zoned commercial instead of residential.  One can equate the financial benefits of that exercise.

In that process, the Lord Jesus Christ, hooked me up with a wonderful Christian Brother, by the name of Merrick L. Lentz.  Who also is a Big Time W.S.U Cougar Alumni as well and will always be a true friend of mine. The weird thing about this whole situation of me becoming financially independent.  Mr. Lentz, faith, confidence, friendship, connections and financial resources he invested in me during that time. Is going to pay huge dividends for both of us in the near future!  It did back then, by a fortified friendship base on God’s principles that allow us to accomplish what they said we could not do.  And that was building that 7 Unit Townhome Development, given the restrictions of the New Growth Management Act of 1990. Instituted foolishly by the King County Council of Seattle, Washington.  In which prohibited any Multi-Dwelling Affordable Housing Units and some Single Family Units from being built for the next 7 years.

This incompetent, irresponsible and incredibly inconvenient law throughout the Metro King County Area of Seattle, had a devastating negative effect on the availability of housing units. King County was already in a shortfall over 4500 units in order to accurately house the current population of its citizens.  At the end of a 7 year period of this inane law. The King County of Seattle, and the surrounding Counties was now over 20,000 Units behind and in a housing crisis. Their stupid decision in regards to this ordinance cost thousands of people terrible hardship in the housing market, jobs and over a Billion Dollars in the Construction Industry alone. Not to mention, the multiple tax revenues lost because of it. It easily cost me and my family in the neighborhood of $250,000 – 300,000, a terrible financial hit at an untimely moment for us. Immediately upon receiving our Rezone Application Approval on our property from Residential to Multi-Dwelling. I applied for a building permit to construct the 7 Unit Townhome Development. Now, one must realize the complexities and heavy financial resources it takes just to be able to pull something off like this. Not to mention, the Management Team that one would need such as Architects, Engineers (Structural and Mechanical), Attorney that specialize in Multi-Family/Condo Developments. Then, the most important element is the Financial Backing needed to bring a successful conclusion to the project. Not to mention, either, your knowledge in the construction industry, property development field, financial disciplines of accounting policies and procedures, project management and so many more variables involved. It’s spooky out there in that real world, but one that, I look forward to conquering in all aspects of life. I was a young 29 year Businessman ready to make a $1,000,000 as soon as possible. So, my new wife at the time would not have to work. She, could come home and be a full time Mom as it should be.