All Forum Posts by: Jake Alger

Hi Harrison,

I'd be happy to recommend a few CPAs that myself and my clients have used in the past.  Send me a PM :)

- Jake

Hi Christina,

Brian is correct.  Unless something has been grandfathered in as part of the zoning, you would likely need to petition for a change in the zoning.  The idea with your zoning currently is to allow only 1 dwelling unit per 5000 sq ft, with the few exceptions that Brian mentioned above, and with all of the proper setbacks.  It can also depend on the size of the lot.  If your parcel is 10,000 sq ft or greater, you may have an easier time with your proposed plan, but hey, it's Seattle...

- Jake

Hi @Jon Holdman,

Depending on the area of Shoreline you looked at, 30 mins at 9am might be pushing it.  Edmonds to South Lake (driving) is not likely within 30 min around 9am, however taking the train is possible.  Ultimately what your criteria is will determine the area.  We have great views from many places around Seattle, even over on the Eastside in Bellevue.  Just depends on what you're looking for.

With your budget, you will have options.

Let's chat further.

Congrats!  Posts like this are what I love to see.  Someone following their passion, putting in the hard work and earning the rewards!

Hi @Jon Holdman,

Congratulations on the upcoming move!  South Lake Union is a great place to work.  It's relatively close to everything and is pretty much smack dab in the middle of the areas you've visited.

Each area you mentioned has different features as I'm sure you noticed when visiting.  A good factor to put into play, if commute time is a top priority, is what time you will plan to travel for work and how many days you'll be "in the office."  Sometimes those who work from home part of the week are willing to adjust their travel for a better property a little further out.

I know the areas well and would be happy to guide you in the right direction.

Hi @Christian St. Jacques,

Let me start off by saying I completely agree with @Jason Dillard.  If your plan is to reinvest the cash, whether in properties during a down turn or even another business venture, your plan may be a sound one.

We all want to achieve financial independence and everyones path to that goal is different.  I guess the main question is, how long will this market continue?  It's been a much slower summer this year than the past couple of years for real estate.  Waiting too long could put you in a position of chasing the market.  Not waiting long enough could cause you to leave money on the table.  It all comes down to your strategy, opinion of the market and ultimate goals.

Right now I'm actively working with a client who is doing something similar to what you have mentioned.  He has sold his primary residence, moved into one of his rentals, all for the purpose of taxes and hedging his bet against the market.

Perhaps towards the end of summer, in a month or two, we will be in a better position to assess where the market is going.  If things pick up drastically and stay that way through fall/winter, there may be more room to run.

I'd be more than happy to chat with you.  Feel free to reach out :)

Hi Michael,

Investing in properties at the right price is always a good idea.  The market around the greater Seattle area has slowed down just a bit, as expected, for summer time.  It's possible to move on properties now and get them into contract without an overwhelming amount of competition.

It's hard to say what the prices of homes will do.  There are two schools of thought.  One being that this can't continue, and the other being that expansion is possible especially if we see more tech growth -- which has been the rumor mill for some time now.

I expect we will know in a month or two if this market will continue.  If things get crazy near the end of summer / early fall, prices will rise.  If demand stays low after summer, we might see a cooling off period.  Hard to judge a market as crazy as Seattle has been :)

If you have any questions or would like to discuss strategy, shoot me a line :)

Hi Kyle,

I think they are gaining in popularity, but not sure how long that will last. In my opinion, their only selling point is that they cut commissions. I've had a few people here in my market (Seattle), who have used brokerages such as Trelora and have been extremely disappointed. The simple fact is that even with a "team" of people managing a property, the attention to detail and personalization is just not there. They are relying on the MLS to sell a property, not marketing, experience or relationships.

For instance, I had a property owner contact me who used a "discount brokerage," which shall remain unnamed, and their property sat on the market literally 8 times longer than it took for the longest listed house in his neighborhood to sell.  He ended up cancelling his contract with them and going elsewhere.  Property sold in 7 days, above asking price and the home was listed at the same price as the initial brokerage.

These types of brokerages overwork their agents, pay less attention to detail and hiring, because if they don't, they'll never be profitable.  The question then, is how long can they outlast NOT being profitable...  Their whole model relies on having a lower overhead and attracting large numbers of people to appease investors.  Unfortunately, real estate is a "people" business, and "people" can only do so much.

Just my 2 cents.

If you were looking to hang your license with one of these brokerages, be wary.  Focus on providing clients VALUE, not a discount.

Edit: I 100% agree with the post above me.

Hi Matthew,

The way in which you're planning your strategy is great!  It's hard to find cash-flowing multi-family units right now but if you're going to be living in a unit, it's more doable.  Instead of living for free, you'd be living for a discount.  I work with buyers throughout the greater Seattle area and would be happy to answer any questions you may have.

Feel free to reach out!

Hi Nathan,

I am a real estate agent in the Seattle area and work with investors all of the time.  I'll send you a PM and perhaps we can connect!

- Jake