Condo in the heart of Wallingford
Investment Info:
Other buy & hold investment.
Purchase price: $335,000
Cash invested: $68,000
Sale price: $635,000
2 bed/2 bath condo with in-unit laundry, secure parking spot, storage unit and rooftop deck with straight on view of lake union and downtown. Checked all of my must haves AND nice to haves moving back to the PNW from new york city and couldn't believe the price point ($/sf has unfortunately caught up with more expensive markets in King county...) This was a great place to live across the street from an express bus line and the extra room enabled me to have a roommate multiple times throughout my ownership to save money; when I moved in with my husband I rented the unit out completely for the 2 years prior to selling it.
What made you interested in investing in this type of deal?
This was my ideal living situation as a single professional - easy commute to downtown via public transportation, walking distance to bars/restaurants, equidistant from two great lakes to run around (Lake Union and Green Lake!) and most important with 2 bedrooms/2bathrooms so easy to rent out the other room to bring in extra income to offset the mortgage.
How did you find this deal and how did you negotiate it?
Refin filters, thanks MLS! I was planning to negotiate and my realtor wisely suggested that I bite the bullet and make a full price offer - very glad I listened and made a full price offer.
How did you finance this deal?
Borrowed just about the max against my 401k to avoid PMI plus the bonuses that I'd saved to come up with 20%.
How did you add value to the deal?
This is an example of very fortunate timing. I did some minor plumbing fixed and I painted one wall. Thats it.
What was the outcome?
Selling this property in 2018 enabled me to fund my rental portfolio (see other posts). Luckily during the 5 years i owned this place I met and married my husband and moved in with him, enabling me to use this as a rental until running up against the max threshold for selling before owing capital gains. Because I was married filing joint when I sold, was able to shield a max of $500k of capital gains on the sale - so paid no tax on the gain (though did have to cover depreciation recapture)
Lessons learned? Challenges?
More option value is always better than less. I do wish I had looked for a duplex around this time instead of a condo, but it is what it is!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes! Andrew Kim @ Windermere was a phenomenal agent and did a great job end to end with listing and selling my condo. He is thorough, sharp, has a deep knowledge of the Seattle market, is considerate and realiable in addition to being an all around awesome guy. Would recommend him to anyone looking to buy or sell a place in Seattle!
