Відео

Good question - Rain City Capital and other Hard Money Lenders do offer downpayment as low as 10% for some loans. We have a list of hard money lenders I’m happy to share, shoot me an email at Michael.Haas@Compass.com if you’d like me to send that your way!

Here you go! Reach out to me at Michael.Haas@Compass.com if you have any questions: docs.google.com/file/d/1WPoJCnGBJwYHrlxv-KcP2JANa_DG7kFa/edit?usp=docslist_api&filetype=msexcel

This one is in Greenwood. Also bought similar deals in Wedgewood, Beacon Hill, Judkins Park, Ballard, Crown Hill, NE Seattle, etc. they’re out there! If you’re not seeing them we send out opportunities weekly, feel free to email me at michael.haas@compass.com and I’ll add you to that list.

Markets have average cap rates yes - but so do buildings. CAP rate is just NOI divided by Current Market Value - your building always has a current market value and always has a CAP rate, current market value is just an estimate until you get to the actual point of sale.

@@househackseattle A building that is not for sale does not have a building specific cap rate until it is sold. It will probably sell at the market cap rate that is established by ACTUAL sales of similar properties that have a cap rate only because they sold.

Interesting - I’ve never heard that. So seems like the definition of NOI / Market Value should be changed to NOI / sale price? And the CAP Rate is only valid when the property is sold then a year later the property has no CAP Rate again? Either I’m not following or it sounds like a “potato - po-tah-to” kind of thing to me 🤷

@@househackseattle A cap rate is documented by each sale. Each sale is a cap rate comp for your property but until you sell your property we can only guess what cap rate you will sell for.

Not sure what our shady move was- was it gifting our client appliances so they could get a home $185,000 under appraised value? 🤷‍♂️

There is a big difference between doing something deceptive, and working hard to check all the boxes to close a deal. I’m always willing to work hard to check those boxes 😊.

Why is that? Last stat I heard was that nearly 90% of contractors are NOT unionized, so that’s a pretty bold statement there.

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Thanks Bradley for watching!

Hey Meahlawat- yes, send me an email at michael.haas@compass.com & we’ll get something scheduled. Cheers!

Hey Meahlawat - here’s a link to my calendar if you still want to schedule a quick call - calendly.com/michaeljohaas/intro-call

He can't cook well......yet :)

Here’s a video with a more detailed breakdown of what to look for: m.ua-cam.com/video/rS403F0Y7RQ/v-deo.html

And if you’re in Seattle reach out to us directly, we have a few deals like this one we’re happy to share!

@@househackseattle yeah I’m in Capitol Hill. How do I reach you

@@DewTime Here’s a link to my calendar, would you book a time that works well for a phone call? calendly.com/michaeljohaas/intro-call You can also reach me directly at Michael.Haas@Compass.com // (408) 439-7873 Looking forward to hearing a bit more about you and your investment goals, and chat about how we might be able to help. Cheers!

@@househackseattle ok sounds good. I am not 100% sure if I want to go the DADU route or not. If I setup a call with you can you provide any specific addresses where someone went through this process of a DADU and ended up selling the property for a profit?

No thank you, but thanks for watching and best of luck!

Seattle!

Thanks!

Depends on your market - Smaller Multifamily (4 unit or less) are the properties that this new conventional loan option applies to. In most markets (Seattle included) these are mostly selling on-market (which you can find on Compass, Zillow, Redfin, etc) although some sell off market (which you can find through relationships and email lists like ours here: househackseattle.com/ )

Thanks!

Thanks 🔥

Yes- even with low interest rates we’ve both lost some and had some very close calls. It’s a tough rule to hit in our market, so I’m looking forward to the additional options conventional loans will give buyers! Talk soon Blair and hope you’re well!

This one was purchased by another investor- we’re not sure what their plans were for it. My team and I are in the middle of 3 similar projects right now though if you have any questions about the development process!

@@househackseattle thank you for your answer. I will schedule time with your team to discuss further.

Yes we do! Please email me at michael.haas@compass.com and I will send you the full list.

Yes we have a list- email me at michael.haas@compass.com and I’ll send it over @156Indy!

did email you on that list as well @@househackseattle so far only thing I received is an automated email to set up a time to talk but no list etc...am I seeing it wrong?

Thanks!

Yes! I’d live here if I was still young and single 😅

There's a good video on that here! ua-cam.com/video/wbjpopI-2oQ/v-deo.html

Happy to introduce you to our Condo lawyer, share the costs breakdown, and the checklist for the strategy- for all that just shoot me an email at Michael.Haas@Compass.com. Here are the top 3 takeaways to highlight from our recent HouseHack Seattle Happy Hour on Condoizarion: Our Top 3 Takeaways 1. You must set up an HOA, even in just a 2 unit project. 2. Since DADU condominium projects in Seattle only have one shared water line, you will receive one invoice for water, sewer, and garbage. Sub-metering solutions is an aftermarket metering company. The service is generally $120/month if you would like it to be completely automated(meter reading and billing of users). You can also just purchase the submetering equipment and use the app to read the sub meters monthly and send out bills. If you do not want to sub-meter a percentage split may be the easier route. This is decided by the developer at the time of setting up the condominium project. 3. If you are getting ready to list units in the project make sure the condo map and declaration are recorded BEFORE your first closing! This is EXTREMELY important! If you do not wait until the map and project have recorded you will be selling the ENTIRE parent parcel, and it is a complicated process to reverse this.

All of Washington allows at least one ADU or DADU, but each city has specific regulations on top of it - for instance, what you're describing would be permitted in Kirkland (2 DADU's) but not in Seattle (1 ADU, 1 DADU) without that structure being attached to the single family home.

This project was renovating a garage that was converted into an ADU about 15 years ago, so that budget was for renovations (new paint, new flooring, new lighting, and adding a kitchen) not necessarily a new-ADU conversion.

@@househackseattle what is a good rule of thumb for how much it costs to convert ADU/DADU? I have heard varying estimates from 15k per 1bedroom ADU to $100/sqf (both sources come from investors in Puget Sound area), wonder what is your experience.

@@quantran7590 if you’re doing a brand new 700-1,000 sq ft basement (2-1) with full permits $70k - $115k. If it’s a conversion without full permits or part of the space is already finished I could see it going as low as $15-20k. Rules of thumb are tough though when plumbing and electrical are involved- so much depends on location of utilities and layout!

Here in Seattle you can decommission the staircase after getting your ADU permit, since the basement has a separate interior entrance. Cutting and capping or rerouting 1.5 inch PVC drains and hot/cold water supply is easy enough. Adding a bedroom and bathroom in this neighborhood increases rents by about $1,000 a month or more, so worth it in my book!

Good question Jim, there are really only two conditions that need to be met to get a loan on the DADU: 1. The property has to be condoized if you want 2 separate loans, one on the DADU and one on the main house. 2. Like any conventional loan, the borrower needs to be qualified with a Debt-To-Income Ratio below 50%, a decent credit score, income history, etc.

Hey RJ- shoot me a message (Michael.Haas@Compass.com) and we can talk more about Burien. It is a good market for DADU’s since they dropped the owner occupancy requirement a few years ago.

What’s your situation Jennifer? Happy to strategize with you on how to make it happen, we can schedule some time to chat here: calendly.com/michaeljohaas/goals

You’re crushing it William, keep it up and let us know how it goes!

Glad it was helpful!

Thank you Umesh 🙏

Appreciate your help my friend! We’ll talk more about what’s next later this month once we get organized.

Thanks for the kind words Bradley, hope the content keeps being useful!

More to come! We’re starting a series, the next video will be how to fund DADU builds and a deep dive into the numbers and ROI. Building your own DADU and spending time talking to builders, and reading the city code is a great place to start. MuchAdu.com is another great resource

Appreciate the kind words, glad you found it helpful!

Yes it is, nice subtle nod to Mr. Money Mustache

We loved seeing those numbers too :). Even better than we projected.