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All Forum Posts by: Michael Haas

Michael Haas has started 35 posts and replied 696 times.

Post: New BiggerPockets member with hopes of House Hacking!!

Michael Haas
Posted
  • Real Estate Agent
  • 🌧️ Seattle Investor & HouseHacker | πŸ€‘ Helped 100+ Clients HouseHack | 🏘️ Own 17 Rentals & 5 Airbnbs | πŸ—οΈ Built 5 DADU's
  • Posts 719
  • Votes 3,003

Ownership is the way to go - if you can afford to own now (through househacking 0-3% down) do it. If you can't afford to own now side hustles, wholesaling, flipping, getting a raise at work, starting a company, etc are all viable to raise that capital. The specifics depend on your skillset, but the general formula of EARN-THEN-INVEST is tried and true. 

Post: Taxes on Condo-ized Lot split for ADUs

Michael Haas
Posted
  • Real Estate Agent
  • 🌧️ Seattle Investor & HouseHacker | πŸ€‘ Helped 100+ Clients HouseHack | 🏘️ Own 17 Rentals & 5 Airbnbs | πŸ—οΈ Built 5 DADU's
  • Posts 719
  • Votes 3,003

Hi Matt - I built a DADU on my primary residence and sold it using Section 121 (2 of 5 rule), so although I'm not an accountant and you should seek one out I'm happy to give my general thoughts here.

It sounds like you are keeping the house, and selling the condo lots, so there is no section 121 deduction that you can apply here - you never lived in the "vacant land" you're selling. You may be able to 1031 but I'm not sure you'll want to re-invest the proceeds into more real estate. 

To find the tax basis for the land your accountant will likely determine the land value for the entire parcel (using tax records or a similar source) then multiply that by the % of the parcel that is being sold. So if your land value is $300k and you're selling 50% of the parcel your DADU lot value is probably $150k or so, and any gains above that would be taxable as capital gains.

BP accountants, feel free to shred my reply and provide your professional insight!

Post: Seattle-Area Property management seeking more mountain homes!

Michael Haas
Posted
  • Real Estate Agent
  • 🌧️ Seattle Investor & HouseHacker | πŸ€‘ Helped 100+ Clients HouseHack | 🏘️ Own 17 Rentals & 5 Airbnbs | πŸ—οΈ Built 5 DADU's
  • Posts 719
  • Votes 3,003

Looks like you're focused on the Eastside + HWY 90 corridor / Suncadia in WA, is that where you're looking to expand as well?

Post: Neighborhood suggestions near public transport for house hacking

Michael Haas
Posted
  • Real Estate Agent
  • 🌧️ Seattle Investor & HouseHacker | πŸ€‘ Helped 100+ Clients HouseHack | 🏘️ Own 17 Rentals & 5 Airbnbs | πŸ—οΈ Built 5 DADU's
  • Posts 719
  • Votes 3,003

For Seattle, anywhere in North Seattle, West Seattle, or near lightrail in South Seattle could be a really good fit. North Seattle & West Seattle tend to have a better reputation than South Seattle, but there are great pockets in every part of town!

Post: Short Term Rental market, Hot, cold or lukewarm?

Michael Haas
Posted
  • Real Estate Agent
  • 🌧️ Seattle Investor & HouseHacker | πŸ€‘ Helped 100+ Clients HouseHack | 🏘️ Own 17 Rentals & 5 Airbnbs | πŸ—οΈ Built 5 DADU's
  • Posts 719
  • Votes 3,003

Seattle & the Cascade Mountains are down about 20%. Definitely lukewarm to cold. 

Post: Re: Partner Opportunities by SummitCapital Partners

Michael Haas
Posted
  • Real Estate Agent
  • 🌧️ Seattle Investor & HouseHacker | πŸ€‘ Helped 100+ Clients HouseHack | 🏘️ Own 17 Rentals & 5 Airbnbs | πŸ—οΈ Built 5 DADU's
  • Posts 719
  • Votes 3,003

I'm not surprised. This is SO important BP - if you are an all star investor you will have access to TONS of capital. If someone is marketing hard and fast to raise $50k investments from beginning investors it means that they are not an all star investor. Its way easier to take a couple million from a bank or credit union through a Line of Credit than it is to please 100 small time investors with $50k invested. They likely do not have access to those easier sources of capital though because of their shady business history and practices.

Good investors do not need your money or partnership.

Post: Anyone doing active BRRRR in seattle?

Michael Haas
Posted
  • Real Estate Agent
  • 🌧️ Seattle Investor & HouseHacker | πŸ€‘ Helped 100+ Clients HouseHack | 🏘️ Own 17 Rentals & 5 Airbnbs | πŸ—οΈ Built 5 DADU's
  • Posts 719
  • Votes 3,003

@Ray Choi you're welcome, happy to share what we've learned. I grew up in the Bay Area, BRRRR definitely works there. DM me if you'd like some Agent / Lender Recommendations in California.

Post: Remote owner challenge with Rentals getting consistently trashed

Michael Haas
Posted
  • Real Estate Agent
  • 🌧️ Seattle Investor & HouseHacker | πŸ€‘ Helped 100+ Clients HouseHack | 🏘️ Own 17 Rentals & 5 Airbnbs | πŸ—οΈ Built 5 DADU's
  • Posts 719
  • Votes 3,003

Sorry you're experiencing this. This is why we do not typically buy out of state and do not buy in bad neighborhoods. I do think that although the location may have something to do with the issues, the sheer volume of issues you're having suggests that you should switch PM's.

Post: SubTo-How to Hold Title in WA / Attorney Referals

Michael Haas
Posted
  • Real Estate Agent
  • 🌧️ Seattle Investor & HouseHacker | πŸ€‘ Helped 100+ Clients HouseHack | 🏘️ Own 17 Rentals & 5 Airbnbs | πŸ—οΈ Built 5 DADU's
  • Posts 719
  • Votes 3,003

@Matt Huber as Ken has mentioned definitely proceed with caution. We typically structure these deals as exact wraps, which is only different than SubTo in that there is an actual payment agreement with the seller, not just a commitment to pay the mortgage. They get you to the exact same place but my understanding is that this structure is a bit more legally clear and justifiable, whereas true SubTo is usually seen as more negative/problematic for the seller. 

We've done enough of these transactions to be dangerous, but not enough that I would suggest I have a roadmap for them or have discovered all the "gotcha's" and pitfalls. Our first ones were definitely a struggle, and although I've never paid one of the guru's a do wonder if I had done so whether it would have made learning the process easier. As most on Bigger Pockets know there's a lot of folks selling information and coaching right now, and some of its isn't that valuable or applicable. 

Good luck! 

Post: Thach Nguyen Mentorship Program

Michael Haas
Posted
  • Real Estate Agent
  • 🌧️ Seattle Investor & HouseHacker | πŸ€‘ Helped 100+ Clients HouseHack | 🏘️ Own 17 Rentals & 5 Airbnbs | πŸ—οΈ Built 5 DADU's
  • Posts 719
  • Votes 3,003

@Justin Chiang Thach is a great investor, but his strategy and experience are not in line with your goal of investing out of state. He doesn't do much long distance real estate, but focuses on teaching students how to wholesale, source local deals off market, BRRRR locally, and specifically take advantage of Seattle's ADU / DADU laws.

Thach is a good friend and I think his mentorship and the community are highly valuable, but if your goals don't match up with his experience you may not get as much value out of it. Cheers and good luck, reach out anytime with other questions!