All Forum Posts by: Matt Lewis

@Daniel Reeder - Hey Daniel, sounds like a cool investment. I don’t see a lot of mixed use on BP.

I’m a contractor in Seattle and the only thing I would look out for is current code violations or any upgrades you may need to make.

Mixed use buildings are usually highly scrutinized by fire and accessibility codes, etc.

Just want to make sure you’re adding any potential surprises into your rehab budget.

@Paul Costick - True, twisting the arm of some random contractor to become an investor might not end well. You need someone who is less focused on paying bills and more focused on the value of longer term investments.

@Eugene K. - Hey Eugene, I’m a Designer and GC in Seattle. It will have a lot to do with your local inspector some will let things slide and others will do everything my the book.

If all the work was done to code by legit contractors it should be fairly easy to get approval. If it’s unsafe DIY stuff you may need to rip it out eventually.

Did it come up when you bought the place?

As far as basement apartments go it doesn't need to be a legit ADU as long as it's connected to to rest of the house and has proper fire egress.

@Meena Soma - Hey Meena, I’m a designer and GC in Seattle.

I’m more interested in joint venture / partnerships at this point in my career. But I’d be more than happy to give you advice and suggestions. I know the contracting work can be a bit of a challenge.

Maybe chat with local MF agents see if they have anyone they recommend.

@David G. - Hey David, I doubt you'll find many agents who specialize in duplexes because it's such a small niche in most markets. I would find a local agent here on BP so you know they at least understand the REI world.

Set up alerts for the type of property you’re looking for and be ready to jump on them.

Maybe if you want to get aggressive have your agent pull a list of off market properties and do a Deal Machine and cold call campaign.

Good Luck!

@Michael Haas - True. Anyone who wants to get out of this thing totally risk free should just sell now while prices are high and inventory is low. It’s the definition of a sellers market!

@James Tarleton - Hey James!

I’m a designer and contractor in Seattle.

I think the tough part is that you’ll win some and you’ll lose some. There are several things you can do to help your odds.

Do you have a local agent who is tapped into the market? That will help with questions like this.

If you feel like you don’t need an agent you can have the listing agent represent you and they will get double commissions on the deal so they have an extra incentive to push your offer.

You can come with a pre approval from your bank or proof of funds.

Offer above asking if you can still make the deal work if you’ve been losing deals.

Remove contingencies if you are confident enough.

Hope that helps!

@Jim Bailey - Hey Jim! I’m a Contractor in Seattle.

Depending on the neighborhood you can do Airbnb. I helped my mom retire by building a two story DADU on her property that she Airbnb’s. It still does well in this market.

The other option might be to do a house hack room rental to help diversify the risk between three tenants. Just make sure to screen your tenants really well! You want tech people in Seattle.

Maybe just update it and put it on the market.

Or sell it to me! Haha

Good luck!

@Paul Costick - Hey Paul! Good idea. I’m a contractor in Seattle.

The only issue I see with that is usually a rehab is more than a one man job. The either you or General Contractor who you are JVing with would have to front those additional costs. A lot of times on a rehab labor is about 2/3 of the cost. So on a $100k rehab that’s over $60k in labor.

In some cases I would be willing to do that. You provide the property, I pay for and manage the rehab, split the profit. Sounds like a win-win.

@Rebecca Readus - Yeah it’s very specific to your area and the scope of each project. I would just make your own spreadsheet and use a site like Homewyse to estimate the costs.

You can breakdown everything you think is necessary job by job and include your zip code for more accurate local pricing.

You can also use those numbers when selecting a contractor. Tell them that’s your budget. Don’t ask for a price. Haha

Feel free to run questions by me I’d be happy to help.

Good luck!