Seattle Houseboat Project

[Chris Stephens]

Investment Info:

Other fix & flip investment.

Purchase price: $380,000
Cash invested: $7,000

Ok... I bought this houseboat (cosmetic fixer) to enjoy as a weekend getaway and a weekday office. Over the past several months I've managed to replace the plumbing, water heater, interior and exterior paint, fixed a bunch of small items that added up to making this place look really cheap. I'm listing the property on Saturday, the 27th of May. Updates, and before and after pictures to come. I'm picking up a triplex, the deal is contingent on the sale of the houseboat.

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

I've always wanted a houseboat and chose this one to try it out. I loved fixing this place up and wanted to keep it, but it turns out that my wife gets horribly sea sick. The marina does not allow rentals.

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

I've kept my eye on the houseboat market for years. This houseboat had a huge front deck with a view of downtown Seattle, a loft, and a large bedroom with 3/4 bath. There was nothing like it at that price point. I met the agent and the owner and then introduced myself to the neighbors to get a sense for the vibe of the marina and learn any backstories on this home. The owner was motivated and the market was tanking. I offered her a choice of either 20k under asking, or to complete 15k in repairs

How did you finance this deal?

I paid cash.

How did you add value to the deal?

Cosmetic remodel!

What was the outcome?

Work is still in progress. I anticipate listing for 410-420k to cover my costs and walk away with some pocket change.

Lessons learned? Challenges?

1. Rent a houseboat with your spouse and test for sea sickness
2. Buying a houseboat when your passive income can absorb the monthly cost is fine. Otherwise, probably pass
3. Make sure to do the math on the true cost of ownership (Ex: Monthly Moorage, HELOC, payment for a portion of cash out refi)
4. This was my sanity project, and I loved every minute of it. I needed the peace and quiet and have no regrets.

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

Agent:
Susan Robinet
Broker | Houseboat Specialist, Coldwell