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.
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!
Updated about 1 year ago
**forgot to finish the actual financing - was a confirming 30 yr note! The down payment was trickier to come up with than the mortgage 😂
@Lacey Hunter my old hood (just left Tangletown for Mercer Island). You timed the market right for sure
Ah Tangletown is so cute! And no kidding on market timing - blind luck to be honest. Surprising how much the condo market has cooled off the last 18-24 months. I don’t really understand what’s driving it as the market for single family homes has stayed strong. @Parker Eberhard have you seen anything in your industry that might shed some light?
@Lacey Hunter I think much of it has to do with there being a huge supply of product available right now and the market is responding to this.
I also think that Seattle is no longer the desirable city it once was, and people are looking in other areas that don’t have the problems seattle has: homelessness / heroin, terrible traffic, terrible schools, anti-business government, etc
Oh man @Parker Eberhard ... you can say that again. I grew up in the Seattle area, left for college in LA in 2004 and bounced around San Francisco/New York following job opportunities before moving back in 2013 and it has definitely picked up more than its share of LA/NYC problems including drug addiction/homelessness and related crime. Its really a shame...city has changed so much. Makes perfect sense on the condo front as a former owner - you are out on foot a lot (proximity being a primary perk fo condo ownership!) and really exposed to the neighborhood you're in...so if/when it takes a turn for the worse, you noticed immediately. Not sure what the solution is but hoping things turn around before Seattle has the affordability and homeless population of San Francisco plus traffic of LA...its like city councils don't ever look at each other and figure out what not to do.
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