All Forum Posts by: Michael Smythies

Hi BP, 

Our team at Rise Group COMPASS has an off-market home located in lower Queen Anne that has been operated as short term rental for the past year with STRONG numbers. This is a large 7 bedroom home with high quality finishes, views of the Puget Sound and of the Olympic Mountains. My question to you, is what sort of cap rate is a buyer of such a property looking for? For context, here are some relevant numbers: 

NOI: $150k

Annual Operating Expenses: $36k-$40k 

Current Occupancy: 35%

ADR: $1000/night 

How would you value out this property? What cap rates are buyers for this type of property looking for? 

Any help would be much appreciated, thank you! 

Hi Jeff, 

You're headed down the right path! House hacking is perhaps the most under appreciated real estate investing strategy out there but also can have the most impact on your financial life. 

As housing is typically ones biggest expense, it is a huge help. Having said that, in a place like Kirkland, you'd have a very good chance of renting for a high amount as Kirkland is a desirable neighborhood to be in. 

I would love to help you run the numbers to see which might be more profitable for you as I have quite a bit of experience in this area. 

Feel free to reach out. 

Hi Mragank, 

Great to hear you're looking for a new home in these areas as they are some of the best neighborhoods (in my opinion) in the greater Seattle area. Having lived in this area for over 25 years, I may be a bit bias. 

Is this an investment property or a personal residence? Either way, you will find that a good realtor will be able to source deals that are both on the MLS but more importantly off-market. Sometimes this is where the best deals are.

I have sent you a private message. Please feel free to reach out with any questions.  

Unfortunately not, I wonder who it might have been. Whoever it was, they got a good deal! 

I appreciate all the open information you provide. It would be incredibly helpful if you were able to provide more details regarding the listing itself, would love to see more photos. 

Here's a question for you - let's say you move out of your first house hack after year 1 and start a second house hack in year 2 while renting out the first home. If you then decide to sell that first house later on, are you able to reap the benefits of selling a primary residence even though you're not living it in any more? Technically it was a primary residence at one point and is still a primary residence loan. Not sure how that works. 

The benefits I am specifically referring to is the up to $250k or $500k (if filing taxes as a couple) tax free profit when selling a primary residence. 

Thank you! 

Hi BP, 

As an investor-friendly real estate agent that has gained an immense amount of knowledge and resources from this forum, I like to contribute as often as I can and share with you deals that I find/analyze in the greater Seattle area. 

Check out this Shoreline investment opportunity HERE. 

Purchase Price: $425k 

Rehab Costs: $75k 

ARV: $650k (Find my CMA HERE)

Profit: $106k (including selling commission, holding costs, selling costs, photos and staging)

What do I like about this property? 

- A smaller project with a lower purchase price gives an opportunity to new investors to get their feet wet with potentially less risk. 

- Shoreline school district is a HUGE plus to this location. With only 7,000 students compared to Seattle's 40k+ students, many families in the Seattle area are moving north for lower purchase prices and better schools. 

- Open concept living room + dining room will make for a sleek and modern looking flip. 

As always, I am open to feedback and discussion on this deal. I'm always looking to improve my numbers and approach. If you would like to see an inspection report for this property, please send me a private message and I'd be happy to forward that over. 

This is great information, thanks Keith. We have a couple clients who have already made the move from Seattle to Missoula this year! A sign for more to come? Only time will tell. Keeping our eyes on the market there. 

Awesome work Winston! What is your next real estate investment? 

Would love to see more photos to see how it turned out. Can't seem to find this house on the MLS. Was it sold through different means?