All Forum Posts by: Edward Seid

I would sell. Your home is in the sweet spot for pricing since median priced homes tend to do well especially in our current market. Inventory is still low here so I think it makes sense to sell and capitalize elsewhere. And because you qualify for the cap gains exclusion, its a no-brainer imo. Best of luck in MI. 

@Prasad J. You can search and filter out ADU/MILs on Redfin. It's not a 100% catch rate because it depends on the wordage used by the listing agent in the public remarks.

Filter criteria:

Single family homes

In the "KEYWORDS" box, put "MIL" or "ADU" or any similar wordage.

City Council just voted to adopt these bills. These are not my words btw:

CB 119787 bans using any eviction records for 6 months after the crisis. So somebody evicted in 2019 for non-payment or trashing your rental and you can't use that in deciding to rent to them or not. Eviction records are public records and like the current lawsuit on Seattle's ban on criminal records, it's unlawful to restrict access to them. In addition, according the Attorney General the city can only pass legislation that is "necessary and routine", like paying bills or "those needed to deal with the outbreak", so this violates the Open Public Meetings Act.

CB 119788 mandates interest-free payment plans and bans late fees for a year. Clearly a government taking and also it's a taking from one private person and giving to another, which violates WA's Constitution. It also impairs existing contracts and so is unconstitutional that was too.

My neighbor asked for my opinion on his home entering the market at 800k. Based on the active and sold comps, I was thinking it'd be more like 775k, but to my surprise, went mutual after 3 days OTM and sold for list price. 

On the flip side, you can find good deals on homes that have been on the market for a while. Recently went pending on an MLS listing for 10% off the asking price.

I have 3 tenants. Just got the first turnover of the year this month, but not due to covid19. Tenants are moving from WA to CA for new job. New 19 unit dev going live this month of which 10 are marketed so I have 11 units total to fill atm. 

I recognize this property from the MLS a few years ago :). Nice job.

Rents were fairly stable in the last economic recession here in the pnw. If you're willing to rent after rehab for the long term, that could be a safe bet. 

Has anyone thought about how inflation will play into this? If the gov't hands out $1 trillion, that money is being printed and injected into the economy. Devaluation of the dollar - Your purchase power will drop. Interest rates on 30 year loans will begin to creep up as banks try to adjust for inflation. 

If you refi today with 30 year loan product, devaluation will erode away at the value of your debt (good thing). Best to refi today and maybe even cash out some if you have W2 income to leverage?

Any mortgage industry professionals have insight on the state of future interest rates?

Stabilized multifamily and commercial in Seattle is ~3.5-4%. With low interest rates, the cap rate compression is greater than normal I'd say. Sometimes I wish interest rates were much higher so at least I know 10 years later there's room to refi to a lower rate. 

Your lease is still active even if expired. By default, it goes MtM. If the repair is an emergency (in this case, habitability of the unit or endangering the health of others in the building), you can access the unit whenever regardless if the tenant allows it or not. Refer to your lease in this case as it does vary lease to lease based on language.