All Forum Posts by: Adrian Chu
Adrian Chu has started 76 posts and replied 1372 times.
Post: Who own apartments in the Bay Area?
- Real Estate Broker
- Seattle, WA
- Posts 1,488
- Votes 425
Who are your favorite lenders in the Bay Area? Would like to learn more about what their loan programs are like (DSCR, how they calculate DS, rates/terms).
Post: My First Home Hack (Adding Words for Characters)
- Real Estate Broker
- Seattle, WA
- Posts 1,488
- Votes 425
Wow, that's great. Sound like a buyer's market?
Post: Palm Springs Fix&Flip
- Real Estate Broker
- Seattle, WA
- Posts 1,488
- Votes 425
Nice. Looking forward to seeing the finished product!
Post: This is my first buy and hold rental deal.
- Real Estate Broker
- Seattle, WA
- Posts 1,488
- Votes 425
Congrats, how did you close in 2 days with a loan?
Post: Too much housing in Seattle? Rent vs buy doesnt make sense?
- Real Estate Broker
- Seattle, WA
- Posts 1,488
- Votes 425
Eastside is expensive. It is relatively cheaper to rent in the Eastside compared to Seattle as most young renters will pay a premium for the "city life"
Ownership still has many advantages like low interest rates and tax benefits, and being able to fix your housing expenses and put certainty to your living situation.
Post: REI CPA Recommendations
- Real Estate Broker
- Seattle, WA
- Posts 1,488
- Votes 425
Mark Canton is a BP member, CPA firm partner, and active real estate investor in WA and CA. I would recommend you talk to him.
Post: BiggerPockets Seattle/Bellevue! Thoughts about appreciation rate?
- Real Estate Broker
- Seattle, WA
- Posts 1,488
- Votes 425
Probably not as high as last few years but still an upward trend. Strong economics, lots of high paying jobs. Home prices are a fraction of what they are in the SF Bay Area. Rent to price ratios are way more favorable here as well.
It depends how much that one time fee is but when home values go up, it's generally not worth doing a single payment PMI. Chances are you can just refi later when the V in your LTV goes up thru appreciation.
See example for $500,000 purchase price.
| Percent Down | Appreciation Needed to Reach 80 LTV | Home needs to be worth this much |
| 3.50% | 20.63% | $603,125.00 |
| 5.00% | 18.75% | $593,750.00 |
| 10.00% | 12.50% | $562,500.00 |
| 15.00% | 6.25% | $531,250.00 |
Also, when you refinance now, there is a decent chance of getting an appraisal waiver from Fannie Mae or Freddie Mac.
Sure, there is a risk of interest rates going up. But if rates stay the same or go down, it's almost the same as paying points right now to lock in a rate.
Post: Multi-family land around Seattle
- Real Estate Broker
- Seattle, WA
- Posts 1,488
- Votes 425
Originally posted by @Darren Chang:
@Michael Haas this is my back of envelope calculation:
3000sf x $250/sf + 250k for land = 1 mil all in
Capital stack:
200-300 equity
200 investment equity
500-600 loan
Two units for rent, each as 1000sf 2-3br unit rent for 2500/mo. Two unit for a year = 60k
Annual cash on cash = 12%
Very rough and I’m just start to think about this. Not purely as an investment but also an exercise for my design and construction muscles. I’m a registered architect.
Looking at these calculations, you might as well just buy 2 turn-key townhomes already built for $500k a pop and rent them out for $2500+ each.
Post: Mobile home flipping in Granite falls WA
- Real Estate Broker
- Seattle, WA
- Posts 1,488
- Votes 425
Risky to do a project far away from home, out in the middle of nowhere.
Post: Multi-family land around Seattle
- Real Estate Broker
- Seattle, WA
- Posts 1,488
- Votes 425
I am replicating this model in several Seattle neighborhoods. Build-to-rent model. Happy to chat.