Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Seattle Real Estate Forum
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 5 years ago on . Most recent reply

User Stats

14
Posts
5
Votes
Vic V.
5
Votes |
14
Posts

Kirkland : House Hack : Help me make sense of these numbers !

Vic V.
Posted

Hello y'all !

I'm currently super stressed about the financials of a property I'm strongly considering in the S Juanita Area in Kirkland. I'm going to be primarily using the house as a primary residence. However, there is potential for a basement that can be converted to an ADU. I'm having a tough time making sense of these numbers to see if this will make sense for me

Here are the numbers I'm looking at 

House - 5 bed /3ba @ 900 k Financed with 20% down.  

MIL/ADU unit - 1bed / 1ba will need to spend around 12 - 15k to get this rentable and permitted. Any thoughts on the permitting cost of an ADU? Ive heard that Kirkland is more recently promoting ADU's but would be great to hear thoughts.

Rent potential from ADU - My agent claims that it could rent for upto 1600 per month but based a quick craigslist search I see independent apartments going for 1500-2100. Any thoughts on what might be a reasonable estimate to account towards my estimate?

Overall, my goal is to keep my monthly mortgage related expenses in the 3000- 3500 region. Considering that ADU income is taxable and both my wife and I currently have other full time jobs (cant claim a higher deduction in real estate work). Does this deal make any financial sense long term?

-

Most Popular Reply

User Stats

11
Posts
10
Votes
Fern Bacungan
  • Investor
  • Seattle WA
10
Votes |
11
Posts
Fern Bacungan
  • Investor
  • Seattle WA
Replied

Hi Vic

If you're super stressed about it now,  imagine how stressful you'll be if you're actually in that situation and are regretting the purchase. My motto is "if you have ANY doubt,  stay out!"  

But,  if you're adventurous soul decides to make a purchase, here are some additional thoughts. 

1. Any thoughts on the permitting cost of an ADU? A call into the city permiting or planning division will ease your mind on the cost and feasability. If they allow it, don't be surprised if it takes months to get it approved, and a few more weeks to get the work done. Will you be ok with paying the mortgage for 6 months or more until you get the additional income?

2. Go to rentometer.com to get comparable rents for a 1bed/1 bath for that area. Enter the address and number of bedrooms. I think you can 1 report for free if you dont have a paying account. I have an account so if you need a report of it, let me know.

3. You may want to consider Airbnb income. I manage properties with Airbnb income. Kirkland is a nice area and might be a good fit for that kind of income. You'll have to compare this type of income with a traditional long term tenant. If you need help with that, i can help you with that also. Pm me directly.

Good luck in your decision.

Loading replies...