All Forum Posts by: Adrian Chu
Adrian Chu has started 76 posts and replied 1372 times.
Post: Looking for a Seattle/ WA forum to follow?
- Real Estate Broker
- Seattle, WA
- Posts 1,488
- Votes 425
This post is on the Seattle forum. :)
Post: Good idea to build house with attached ADU for rental investment?
- Real Estate Broker
- Seattle, WA
- Posts 1,488
- Votes 425
Check with the city to see what their requirements are. Then, see if that fits in with the design you want to achieve with your home.
Different jurisdictions have different views towards ADUs.
Seattle requires it now for any house where the square footage is more than half the lot size. Seattle also lets you rent out both the ADU and main house separately. Kirkland allows that as well. Most other cities do not.
Post: Do buyers prefer gas in the Everett WA area
- Real Estate Broker
- Seattle, WA
- Posts 1,488
- Votes 425
It is nice to have to accommodate for forced air heating and/or air conditioning. But if your plan is to use electric wall heaters anyway then it is not a huge difference.
Post: Invest multi family in Seattle now and seek guidance and advices
- Real Estate Broker
- Seattle, WA
- Posts 1,488
- Votes 425
Originally posted by @Linus Cui:
@Adrian Chu thanks for your feedback, I do agree there are lots of cash in the market, but many of them are waiting and hesitant to place an offer due to the risk of Covid, this less real buyers.
There was a decent 10 unit in Lake City last month and it ended up with 14 offers.
Post: Invest multi family in Seattle now and seek guidance and advices
- Real Estate Broker
- Seattle, WA
- Posts 1,488
- Votes 425
Originally posted by @Bob Malecki:
Would Tacoma be a good target for better values?
Tacoma seems overpriced now these days.
Post: Invest multi family in Seattle now and seek guidance and advices
- Real Estate Broker
- Seattle, WA
- Posts 1,488
- Votes 425
Most apartments in Seattle trade for under 5% cap. I disagree about there are fewer buyers - with all the covid-19 stimulus and low interest rates, there is A LOT of capital floating around and everyone is trying to find places to deploy it.
A first step is to look into financing options for 5+ units - they depend on the rental income generated by the building. So if you are looking at something 4.x% cap, you need to put around 40-50% down or more.
Post: Selling to a Developer
- Real Estate Broker
- Seattle, WA
- Posts 1,488
- Votes 425
Originally posted by @Seattle Matt:
I wanted to follow up with this posting with the details of my PSA. Below are the items that I have noted that concern me. I am worried about timeline at this point, I have the house prepared and ready to sell on the market, If I sign this PSA I do not want to be left with this back on the market 3 months later when the market has gone down and we are heading into the winter slow season.
1. Buyer shall verify within 14 days after mutual acceptance (the “Feasibility Contingency Expiration Date”) the suitability of the Property for Buyer's intended purpose.
I think this means the buyer has 14 days to decide if they want to proceed at all.
2. Earnest Money to be deposited directly with Escrow three business days following written waiver of Feasibility Contingency.
I believe this means that the earnest money is not active until after the "14" day feasibility study.
3. Closing date is December 2020
Does this mean they can back out any time between 14 days and dec and only lose the Earnest money? I still have to pay mortgage, utilities, etc for another 6 m?
Earnest money is 20k
Did you end up selling? #3. Yes.
Post: How hot is downtown Seattle? Is it expected to continue?
- Real Estate Broker
- Seattle, WA
- Posts 1,488
- Votes 425
Seattle is a tech industry hub. The tech industry has disproportionately more employees working from home full time right now. So people feel like they have more options and no longer have to compromise on their living situation. Instead of living in a tiny condo/townhome/apartment in the city, they could choose to go to the suburbs and get a single family home or something with more space for the same price.
The long term impact of this is a paradigm shift in the way people work. I believe that most people currently working from home will transition onto a part-time WFH/part-time at the office model. As a result, commute times won't be as bad as there will be fewer people on the roads, and since it would only be for 2 or 3 days a week, people are willing to make that compromise.
People who can afford to live comfortably in the city will continue to do so. Homes above $900,000 up to around low $3 millions or so in city are still increasingly popular.
If your friend no longer wants to live in the city and if the unit does not make sense as a rental, then I would recommend they sell it and move on.
Post: Looking for land in King and parts of Snohomish
- Real Estate Broker
- Seattle, WA
- Posts 1,488
- Votes 425
Are they interested in townhome projects?
Post: 24 Unit Development Opportunity
- Real Estate Broker
- Seattle, WA
- Posts 1,488
- Votes 425
Originally posted by @Stewart Sears:
@Adrian Chu thanks for clearing that up! So funny, I almost DM'd you on FB for this question lol. Thanks again!
No worries! Happy to look at it with you.