Seller or Owner Financing

[Keyana Buckner]

Hey folks, 

Im a newbie investor who isn't looking to make my first investment out of state. Seattle is my home for now and where I want to do business but it's intimidating and expensive. I've decided I would like to buy my first home here and home hack it for awhile while I continue to learn about Real Estate and what kind of investor I want to be. 

Seattle isn't really friendly to those who cant purchase with an all cash offer so I am interested in finding other creative approaches to this problem. I'd like to hear if anyone has had any luck with seller financing in this area? Is this a viable strategy or am I out of my league? 

Please link articles that could help me outline the positive talking points around this option. How does this ultimately benefit the seller? How can I convince them to agree to this? 

[Michael Haas]

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.