All Forum Posts by: Tim Cornwell

If you’re someone who pays attention to zoning, infill, or housing affordability, you may have come across the term “middle housing.” It’s starting to show up more and more in local government plans, developer meetings, and investment strategies—and for good reason.
Middle housing refers to small-scale, multi-unit housing types like duplexes, triplexes, fourplexes, townhomes, courtyard apartments, and cottage clusters—typically built within existing single-family neighborhoods.

For decades, most neighborhoods have been zoned exclusively for single-family homes. That worked for a while. But over time, it contributed to sprawl, higher housing prices, and a severe shortage of attainable housing.

Why This Matters Now
Washington State passed two major pieces of legislation in 2023 that directly affect this conversation:
• House Bill 1110 – Requires most cities to allow at least 2 to 4 units per residential lot in areas previously zoned single-family only.
• House Bill 1337 – Expands the legal use of accessory dwelling units (ADUs), allowing up to two per lot and removing many previous restrictions. Combined, these bills represent a fundamental change in how we think about land use.

And they’re arriving at a critical time. As the Washington State Department of Commerce puts it in their most recent five-year plan:“Washington is in the midst of an affordable housing and homelessness crisis.” — 2024–2029 Homeless Housing Strategic Plan
The goal behind these new laws? Add at least 1 million new homes by 2044—not by paving over farmland or building endless subdivisions, but by reimagining what’s possible in the neighborhoods we already have.

This isn’t just a city planner’s dream or a legislative talking point. It’s a real opportunity for homeowners, investors, and communities to respond to rising demand for diverse, attainable housing—with more flexibility than ever before.

Why I’m Paying Attention...
For those of us who work in real estate daily—whether investing, selling, building, or advising—these new laws change the landscape.
Properties that used to support one home may now support two, four, or even six units, depending on location, lot size, and proximity to transit.

That means:-There is hidden value in older properties and large lots

- More creative paths to cash flow

- New ways to help people find housing and build wealth

-Potential for more affordable housing

-Opportunity for multi-generational housing on a single lot

Let’s Explore This Together

- What’s your take on middle housing?- Have you seen local changes already?- What questions do you have about what’s coming?

Drop a comment below—I’d love to hear your thoughts.—Tim Cornwell

3 Votes

Seattle, Washington

Real Estate Deal Analysis & Advice

Post: 10 Unit Multi-Family Acquisition

Tim Cornwell

Posted May 21, 2025 08:51

Real Estate Broker
Bellingham, WA
Posts 50
Votes 22

Investment Info:

Large multi-family (5+ units) buy & hold investment in Bellingham.

Purchase price: $1,730,000
Cash invested: $550,000

10 unit multi family building purchased with 5 members of our real estate agent team. We formed a multi member LLC.

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

Cash flow, upside, rents were low

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

It was listed on the MLS. It was pending inspection and came back on market on a Saturday. Wrote an offer immediately.

How did you finance this deal?

Bank financing

How did you add value to the deal?

Rents at the time were well below market. Used the income approach to value and met the DSCR requirements of the lender and were able to negotiate a price lower than list price with the seller.

What was the outcome?

Increased rents over the past 3 years to market rent and thus increased the NOI and value of the building by 50%

Lessons learned? Challenges?

Should have locked into a fixed rate loan instead of floating. Got hit when loan reset but fortunately still has strong cash flow.

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

I am an agent and did my own deal! I used a local lender called SaviBank and they did a great job. I do have to give credit to what I've learned from Grant Cardone about investing in apartments.