All Forum Posts by: Michael Haas

I've had success with cashflow rentals in Seattle by getting off the beaten path- there are established investors bidding up the price (and therefore bidding down the cap rate) on many small multi-families, but those same investors are not going after large 6-9 bedrooms SFHs that you can rent by the room to young professionals and college students. Most are also are not establishing STRs, especially now that Seattle regulations limit most families to just 1 Airbnb/STR outside their primary residence.

I'm in Seattle, and have two rentals currently returning double the average Seattle CAP rate. Feel free to send me a message if you have more questions or would like to chat over coffee. Cheers!

Seconded Amit - if you can get specific about your skills and desires I’d be happy to get specific about what good options would be in my experience. Cheers!

I didn’t know this when I sold my first home in 2014 (before I became an agent), but Washington state levies a real estate excise tax(REET) on all property sales. This state tax rate is 1.28% of a property's full selling price. Big surprise on my $532K sale!

Agent commissions and other closing costs will eat into that $250k too. 

You don’t have great rental numbers but it’s cash flowing and your mortgage rate is good, without more specific info my gut says I’d hold on to it. 

I'd shop your lender- if you have decent credit those HELOC and cash out refi rates seem super high to me. I'm in Seattle- which neighborhood is your rental in? Curious if there are any up-zones pending or other reasons to hold the property.

Smart money is decreasing their stock market exposure right now. Also you’re asking a forum dedicated to investing in real estate, I think you know what all of us are going to say 😉.

Rent the house, don’t sell, or if it’s a crappy rental sell and roll that cash into an income producing property. I’m in Seattle too and have seen a few good ones lately, DM me if you want to chat about that. 

We've been interested in a STR in Leavenworth for awhile now- already have STRs in West Seattle and Homer AK. The four seasons attractions in Leavenworth really helped my calculations pencil- there's no off season, just shoulder seasons!

If the sum was smaller I would say try to build something, but that’s a hefty amount of money. If they’re really looking for long term sizable cash flow they’ll need more than one property, even if that one property has an additional unit. Buy with an eye to immediately convert ADUs or MILs or later on develop DADUs ( more expensive and less likely to have already been setup on a house you’re looking at ). Who knows, maybe the construction shortage here will wade a bit soon too. Tiny houses are also an option, but the city of Seattle recently banned them as STRs (which is really what they’re best for...)

Good luck! I focus on properties with more than one unit (ADU, MIL, Tiny House /prefab mostly) in WA so hit me up if you have more questions!