Hello from Seattle -- Looking to get started!

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Hello from Seattle -- Looking to get started!

Sun Kim
Member since 2019 · 4 posts · 1 vote

Hello! I am from the greater Seattle area looking to get started with REI.

I am in my early 30s and recently married. I have never bought a property before, but have been saving money to buy one. I have saved about $100k, and I almost pulled a trigger on a 650k single family home in Seattle area which would have had negative cash flow. 

After some digging, I found this website and have been reading books and watching podcasts. I have been playing with the idea of investing out of the state but I might do just a bit more research until I feel more comfortable.

I would love to meet other members in person and hopefully find a good mentor.

Thanks in advance and I look forward to being a part of the community!


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Michael HaasBusiness Member
Real Estate Agent · Redmond, 🌧️ Seattle Investor-Agent | 🤑 Helped 400+ Clients Invest in Real Estate | 🏘️ Owns 23 WA Rentals & Airbnbs | 🏗️ Built 5 DADU's | 📈 You Can Do It Too · Member since 2016 · 724 posts · 3k+ votes
6y

Never count on solely appreciation @Sun Kim - and friends don't let friends buy with negative cash flow! Your first deal's cash flow is the engine that powers you to your second property and beyond. 

If you've never bought a property before an owner occupied house hack or multifamily is probably the way to go. That's the way we started, and it made it very easy to snowball into the 5 properties we own now. Happy to grab coffee with you sometime and chat more, feel free to send me a message!

[email protected]408-439-7873
HouseHack Seattle | Michael Haas & Team572 Reviews
WebsiteView Page
4Reply
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  • Anthoney Hanks
    Real Estate Broker · Forney, TX · Member since 2019 · 1k+ posts · 399 votes
    6y

    Welcome to Biggerpockets and good luck going forward! It is nice to meet you. Kudos on the watching the podcast. I learn so much from them I get new strategies to ponder each time I listen. And also for saving up that much money to begin your journey. I am inspired by your hard work.

    0Reply
  • Jess Haas
    Realtor · Seattle, WA · Member since 2019 · 117 posts · 165 votes
    6y

    Hi Sun,

    Welcome to BP! Do you rent currently? I would consider getting an FHA loan on a personal residence house hack that and use the rest of your cash to invest in Seattle or out of state. What neighborhoods are you looking in?

    2Reply
  • Brian Hughes
    Seattle, WA · Member since 2017 · 275 posts · 223 votes
    6y

    If you are looking to buy in seattle, consider a house hack situation. If the home has an ADU (or two) you could live in one unit and rent the others out. There are places out there for less than $650K. you wouldn't cash flow occupying one unit, but I bet you would come close to offsetting your mortgage. My last sunday jog I went past two such houses that each have two units in Skyway. IIRC both are in the 400K's and have been on market for a few weeks and look to be in habitable/decent condition. Neighborhood is on outer fringe of seattle so not walkable to any amenities, but still good commute options to lots of places.

    One thing to consider though-  Seattle has very punitive/strict tenant protection laws -  and given our recent city council elections which appear to have moved the council FARTHER left (if that was even possible...)  expect it to just get worse.  The avowed socialist councilmember we were all hoping would not get reelected did win on late mail in ballots,  so they are going to be very emboldened now.  

    1Reply
  • Sun Kim
    OP
    Member since 2019 · 4 posts · 1 vote
    6y
    Originally posted by @Jess Haas:

    Hi Sun,

    Welcome to BP! Do you rent currently? I would consider getting an FHA loan on a personal residence house hack that and use the rest of your cash to invest in Seattle or out of state. What neighborhoods are you looking in?

     I am just beginning my search and I was originally looking in Seattle/Bellevue area for appreciation opportunities. I quickly realized that with my income and cash saved up, I can't afford anything. And even if I buy something of $600-$700k range, the cash flow would be a huge negative. 

    0Reply
  • Sun Kim
    OP
    Member since 2019 · 4 posts · 1 vote
    6y
    Originally posted by @Brian Hughes:

    If you are looking to buy in seattle, consider a house hack situation. If the home has an ADU (or two) you could live in one unit and rent the others out. There are places out there for less than $650K. you wouldn't cash flow occupying one unit, but I bet you would come close to offsetting your mortgage. My last sunday jog I went past two such houses that each have two units in Skyway. IIRC both are in the 400K's and have been on market for a few weeks and look to be in habitable/decent condition. Neighborhood is on outer fringe of seattle so not walkable to any amenities, but still good commute options to lots of places.

    One thing to consider though-  Seattle has very punitive/strict tenant protection laws -  and given our recent city council elections which appear to have moved the council FARTHER left (if that was even possible...)  expect it to just get worse.  The avowed socialist councilmember we were all hoping would not get reelected did win on late mail in ballots,  so they are going to be very emboldened now.  

     I am not too happy with Seattle counsels either. That said, where do you recommend I look for positive cash flow in Washington state? My wife and I already decided to rent a place in the heart of downtown for the convenience to my work and to enjoy city life. We are purely looking for rental properties with positive cash flow.

    0Reply
  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    6y

    Welcome to the BP family @Sun Kim ! Glad you joined the best real estate investing website!

    Here are some recommendations for you:

    Find and connect with other BP members that are in your area: https://www.biggerpockets.com/search/users
    Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts
    Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing

    If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box. He or she will be notified of being tagged so that the conversation will continue.

    Wishing you the best!

    0Reply
  • Abiel Zewolday
    Member since 2019 · 2 posts · 0 votes
    6y

    Hi Sun, 

    Also a Seattle native looking to invest in the area. Try looking in the CD, Rainer, Renton area. Also Everett. You'll have a better chance finding a property that has potential to appreciate while still being fairly affordable compared to the Seattle area. 

    Hope this helped. 

    Abiel 
     

    0Reply
  • Robert Freeborn
    Real Estate Agent · Bellingham, WA · Member since 2017 · 427 posts · 182 votes
    6y

    @Sun Kim

    Have you looked further up the I-5? I’m finding lots of possibilities up here, though sometimes you have to negotiate the price down.

    Shoot me a message and I’d be happy to show you a few listings up here that might work for you.

    0Reply
  • Bryce Greenleaf
    Real Estate Broker · Bothell, WA · Member since 2019 · 2 posts · 0 votes
    6y

    Hey Sun. Based on your situation and what it sounds like you're looking for, I think you may have better luck getting into a cash flowing property by looking further north. Such as Everett, Lake Stevens, Marysville. I saw a great deal that came up in Everett last week, but has since went pending. Are you open to finding something that's distressed (potential to build equity through a Brrr strategy)? Or are you hoping to find a turn-key cash flowing property?

    0Reply
  • Richard Bonisa
    Investor · Indianapolis · Member since 2019 · 108 posts · 69 votes
    6y

    Best wishes.  This is a great site. It provides a lot of learning and serves as sort of a watchdog for the pitfalls.  Just get engaged and you will pick up alot of good things very quickly. 

    0Reply
  • Michael HaasBusiness Member
    Real Estate Agent · Redmond, 🌧️ Seattle Investor-Agent | 🤑 Helped 400+ Clients Invest in Real Estate | 🏘️ Owns 23 WA Rentals & Airbnbs | 🏗️ Built 5 DADU's | 📈 You Can Do It Too · Member since 2016 · 724 posts · 3k+ votes
    6y

    Never count on solely appreciation @Sun Kim - and friends don't let friends buy with negative cash flow! Your first deal's cash flow is the engine that powers you to your second property and beyond. 

    If you've never bought a property before an owner occupied house hack or multifamily is probably the way to go. That's the way we started, and it made it very easy to snowball into the 5 properties we own now. Happy to grab coffee with you sometime and chat more, feel free to send me a message!

    [email protected]408-439-7873
    HouseHack Seattle | Michael Haas & Team572 Reviews
    WebsiteView Page
    4Reply
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