All Forum Posts by: Matt Lewis

@Philip L. - Congrats on the new rental! The second hand / architectural salvage places can be a good place to find great deals.

The only thing is you need to consider is will a mix-matched kitchen and bath with outdated appliances, cabinets and fixtures will that negatively effect the rental rates you can get in your market. In my neighborhood you can charge over $800 more per month for a house with updated kitchen and bath. If you’re mostly doing DIY that would pay off pretty quickly.

Also consider your time shopping around, hauling and refurbishing all these individual items. It might cost more and delay your project more than you think.

As in investor you might be able to convince local smaller suppliers to give you wholesale pricing on new stuff. Usually 30%-50% discounts.

If you do go the cheap and dirty route feel free to reach out. I have some great cheap DIY hacks.

I’m a designer and builder. I use Trimble Sketchup Pro but there is a free version that has more than enough features to design a kitchen or a whole house even.

I have a video tutorial on how to design a kitchen with Sketchup. Let me know if you want me to send you a link.

Good Luck!

@Morgan Granger - Hey Morgan! Congratulations. I would definitely just get a stainless steel appliance package. You can get an nice set on US Appliance for about $2k with free shipping. Package 15 includes fridge, range, dishwasher and microwave. With all new stainless appliances all from the same brand and vintage in most markets you can charge a premium for rent and recoup that additional cost pretty quickly. Some companies offer pretty affordable extended warranties and even financing. Good Luck!

Thanks @Natalie Kolodij !

Hey @Natalie Kolodij , Thanks for the recommendation. I’m definitely going to attend this year. Looks like now is the time to buy tickets! Do you think it would good for me as a General Contractor looking for partners?

Hey @Ron Richter , I’m wondering the same thing. Looking for more Seattle based events to fill out the year. Let me know if you come across any good ones!

Hey @Jenna Lee , I’m a West Seattle based Designer and Builder, General Contractor. I think I’m one of those expensive, busy contractors we always hear about. Haha! I’d be more than happy to give friendly advice anytime. Feel free to PM me with any questions!

Investment Info:

Single-family residence buy & hold investment in Seattle.

Purchase price: $500,000
Cash invested: $200,000

We added a second floor dormer roof addition to the existing house and a new two level carriage house in back. We built an additional bathroom, kitchen and dining room to the main house on the second floor to create a separate apartment. In the back yard we tore down a rickety old garage and added a 16' x 24' two story carriage house with one apartment on each level. The current owner lives in the main house with her elderly parents while she rents the two apartments in back on Air BNB.

What made you interested in investing in this type of deal?

Seattle is a very high dollar market which causes the cash flow potential on a rental to be very low and the spreads on a standard flip to be very thin. If you add enough usable square footage to a property in one of Seattle's "A" neighborhoods the returns on flips can easily be in the multi six figures and with people paying $1,300.00/month or more for a studio apartment that can go on Air BNB for $200/night with an 80% occupancy rate, adding units can really pay off.

How did you find this deal and how did you negotiate it?

The homeowner wanted to use her house as a live in rental with separated units as a way to supplement her income after retirement.

How did you finance this deal?

The homeowner already owned the property and used it as a primary residence. As far a future repeatable investment system, I think partnering with the homeowner on the flip rather than purchasing the property in cash upfront may make this an incredibly powerful flipping strategy.

How did you add value to the deal?

I acted as Designer / Project Manager. Starting by creating an initial concept with the homeowner, I worked with the Architect and General Contractor to nail down the final design. I routinely monitored the project from concept to completion to make sure the build was on track and safe for the homeowner who lived in the house throughout the build.

What was the outcome?

Crazy cash flow and forced equity.

Lessons learned? Challenges?

Next time I would retain creative control to ensure that we are using the property to it's highest and best use. Choosing a house on a slope in a view neighborhood and adding a roof deck would make this an even better deal. The challenge becomes finding properties in the $500k-600k price range in these neighborhoods. You can buy a house like this for $500k, put $200k into it and sell it for $1-1.5M.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

The cooperation between a local Designer, Architect, General Contractor, and Landscape Architect were integral in making this project a success. Please feel to contact me for recommendations.