All Forum Posts by: Michael Haas

Hey @Carlos Hernandez, thanks for the post! DM me your phone number & email and we can chat about our projects to see if there's anything that's a good fit. Cheers!

Hey @Kenneth Dusang, we could be interested. What are the details? Also feel free to DM me or email to the address in my signature below!

I'd second @Daniel McDonald, @Amit Ratwani have you considered HouseHacking? Some simple Math:

Lets say you do a Seattle 4plex HouseHack w/ 5% down conventional (a new loan option for multifamily that's better than 3.5% down FHA, just DM me if you want the full rundown on why).

That $70,000 could purchase you a property up to $1,400,000... and to get a 100% ROI on your investment all you need is 5% appreciation on the property. The average appreciation rate in Seattle over the last 40 years has been 5.5%. Cashflow / rents will provide additional ROI but in our experience over a long hold time appreciation will always contribute more to your total ROI than cashflow. Interest rates will also be .25% - 1% lower on an owner occupied property than on a rental property.

Contrast that with buying out of state / non owner occupied properties. That $70,000 now has to go into a 20 - 25% down mortgage, allowing you to purchase a property for $280,000 - $350,000. Now, to see 100% ROI the property would have to appreciate 20 - 25% in value. Cashflow / rents will provide additional ROI but not enough to overshadow the more favorable loan terms and higher value of the househacked property.

This is an oversimplification but I'm sure you get the point! Happy to talk about the strategy more - we're up to 13 properties owned in WA now and wouldn't have been able to scale to that level quickly without househacking.

I'll second @Brandon Vukelich - with a full time tech job (which I'll assume is relatively demanding) you're going to have to hustle hard to make it work as a part time agent, and even then you will struggle. We have some great part time agents on the HouseHack Seattle team, but most of them are not yin your life stage - I have two kids with a third on the way, and know that "young kids" life stage will be very tough to work as a part time agent. If you're going part time I'd say limit it to a 3-6 month trial to see if you like the work before quitting your job - it sounds like you have some savings and investments, so rather than be mediocre and stretched thin, it would be better to do it fully or not at all. Its a tough side hustle, and the people that probably get hurt by your PT schedule will be your family, and your clients.

@Martin Krimmel has a Househack / Airbnb in Ballard and would be a good resource for some real numbers! Good luck with the property :)

Hey Breanna - finding contractors in Seattle is tough, everyone is quite busy and prices have gone up considerably. What types of projects are you doing? Would this be renovating an existing portfolio, or new properties you're looking to acquire in Seattle? And do you plan to hold (rental quality) or flip (flip quality)?

@Aleksandr Shmidt land can be tough to value accurately. Here's the process HouseHack Seattle goes through to evaluate land deals:

1. Zoning: What is the lot size, zoning, and ADU/DADU potential? How many units can be built on the property?

2. Topography & ECA: Is the lot steep, lots of trees, a river, wetlands, or other environmentally critical areas that will either increase the cost of development or make development impossible?

3. Access: What does the infrastructure look like (street access, water, power, sewer, etc). Can heavy machinery get in and out of the lot for building

4. HOA's / Title / Legislation: Are there any concerns here?

5. Comps: What would we build on the lot, and what is that type of home selling for IN A .5 MILE RADIUS OF THE SUBJECT PROPERTY. In King County neighborhoods and school districts dramatically influence the value, so if its more than a half mile away it may not be a great comp, and will need some adjustment.

6. Value the Land: This is a complex calculation that comes from the experience of multiple new construction and entitlement projects, but if you're getting started or wholesaling you can target spending 30% of the ARV of all completed structures on purchasing the land. That will give you a rough estimate of the value of the land to an investor/developer.

Hope this helps! Reach out to me anytime with questions or to connect.

Our team's Seattle based HouseHacking & Investing meetups are an amazing place to network and learn - if you're ever in Seattle find them on Meetup.com by searching "HouseHack Seattle Meetup" and "Hello Eric Yu Meetup". We also post all the spearker videos on youtube, just search "HouseHack Seattle Youtube" to find those and subscribe. 

Happy networking @Jessica S., reach out anytime if you'd like to connect or I can help you grow your business!

Thanks for the kind words @Eric Yu! @Ryan K. Eric may have been too humble to mention it, but he also hosts an awesome Short Term Rental & HouseHacking meetup - to find his on Meetup.com just google "hello eric yu meetup" and it'll come up. That and the "HouseHack Seattle Happy Hour" are a great place for anyone to start networking with investors, builders, contractors, realtors, and lenders that really know HouseHacking, STR's, and Investing!

Thanks Ryan for the Reccomendation and welcome to Seattle Ryan K! I’m excited to get to know you and your girlfriend. As others have reccomended meetups are a great way to network- search “HouseHack Seattle Happy Hour” on meetup.com to find our monthly happy hour. We have food, drinks, networking, and a speaker and have had as many as 100 real estate investors and future investors in attendance. 

As always, reach out to me anytime! HouseHacking is in our blood and has been hugely profitably for my family’s financial life. I’m a true believer and always willing to answer questions and spread the gospel of HouseHacking 😆