All Forum Posts by: Michael Haas

Interior design would likely just handle your finish selections @Tonye Wokoma- if you’re doing a Reno-rehab and don’t know where to start you probably need a PM/GM.

I second Pinterest for the finishes- it’s really not complicated. Find some high end renovated or new construction apartments in your neighborhood- take a picture of all the finishes and steal your favorites (ideas that is- not the actual finishes from the apartment 😅)

If you have 1-3 rentals you gotta be scrappy as you build your portfolio, don’t throw away your money unnecessarily!

@Dave Skow's point is a good one- Since 2014 new FHA loans at 90% loan-to-value or less (more than 10% down), have the monthly mortgage insurance premium payable for at least 11 years.

For new loans at more than 90% loan-to-value (less than 10% down), the monthly mortgage insurance will be payable for the life of the loan.

Way back before 2013 FHA allowed the mortgage insurance to be cancelled when the mortgage insurance has been paid for 5 years and the loan balance reached 78% of the original purchase price or value of the home.

With 3% down you're looking at homes in the mid-400s; hard to find in Beacon Hill-Mt Baker-Columbia City, but lots of good options around Graham Street (where the Hillman City infill lightrail station will go) and Rainier Beach lightrail. Both would have dead-simple commutes into Pioneer Square. 

Since you're going conventional and want to house hack I would be looking for a dated but livable upstairs with 2+ beds and an unfinished basement. 7 ft ceilings ideal, but 6'4"+ acceptable. Bonus if there's already plumbing and either has a waste pump or a low enough waste line that it doesn't need one. Pay attention to egress windows - 99% of the houses won't have them, so you should be looking at how dificult they will be to install. Here in Seattle they're run you about $5k a pop all in, but I've also installed them myself for $500 materials. Definitely hard work though.

Close on it, get that roomate in upstairs for cashflow, then start pouring nights and weekends into that basement. I've also got some real cheap labor contacts if you have a bit of cash left over and want to expedite getting renters in the basement.

Lots of options- good luck and PM me if you need anything! We're converts- we house hacked our way to 4 Seattle properties and think its a incredible way to build wealth. 

Hi @Megan Cassidy - we have a tiny house, 2 short term rentals, and 3 long term rentals and know a bit about the unique requirements of each of those niches. We're here in Seattle to, so happy to connect to share whats working for us and/or grab a coffee if you're interested. PM me if so, cheers and best of luck as you start this adventure!

@Willy Lew Seattle multi families are mostly over-priced, the big CAP rates in my experience are in large (6-8 bed or more) SFRs rented to young professionals by the room or STRs to tourists and business travelers. Both are less appealing to foreign buyers and the wealthy tech homeowners/beginner investors, so you have less competition and much lower $/Sq ft prices. The caveat there is they take a bit more management time, but as a beginner with 1-6 properties that's not much of an issue yet. Good luck, always open to grabbing a coffee or a beer to chat about the local market if your interested.

I second RHA- if you want something quick, dirty, and free you can message me for one that I use, with the disclaimer that it was not drafted for a lawyer and is about 5 years old. 

Following- I like South Park for the future, currently I own in the High quality neighborhoods surrounding (Admiral, N. beacon Hill). 

There are probably some environmental concerns to look out for with Sodo, the transfer station (dump), and the Duwamish all so close by.

Hi @Nicole S. - we’re here in Seattle starting our 4th rehab next week. How did this project go, and did you work with any contractors or tradespeople you can recommend? Cheers and thanks for sharing!

Washington in general is a very Tenant friendly state, but most of the onerous rules people are referencing are Seattle city regulations, not Washington state. Renton will be a lot easier to stay in compliance in as a landlord vs. Seattle.