All Forum Posts by: Michael Smythies

Hi Azu, 

Always love to hear when someone is first starting out with BRRRR in their real estate journey. It can be an excellent way to build significant equity and continue by re-investing.

I am currently doing a downtown Seattle condo BRRRR. Check out my profile to see more information on it. It was originally going to be a fix & flip but we decided to make it into a BRRRR after the slump in the condo market here in Seattle.

Please reach out if you have any specific questions! 

Hi Brooke, 

Great to hear about your move to the Pacific Northwest! This area is truly one of the most beautiful and awesome places to live in the US (in my bias opinion). 

The one piece of advice that we continuously tell our clients who are just starting out on their journey in real estate investing is to focus on education as much as you can. If you can be laser focused on just learning and absorbing as much as possible, you will be way ahead of most investors out there. 

However, it sounds like you're already doing this so great job! Next step would to network with people who are doing exactly what you're looking to do yourself. Join meet ups, engage on bigger pockets, email people who you know who have done similar things. 

When the time comes to purchase, you will be ready and well equipped to make a confident decision in your investment. Please feel free to reach out if you're curious to know more about the the house hacking/multifamily market here in the greater Seattle area. 

@Sherief Elbassuoni - thank you for the information. It seems to me that in order to finance a new construction DADU, you need to pull out equity from the house or another investment through a cash out refi or a HELOC. It is not as simple as building new construction for one house on one lot. Is that fair to assume?

@Sergey A. Petrov - thanks for the input! I'll take a look at some of these areas. 

Here are just a few that I've found that seem to be STR friendly: 215 17th Ave E, 2727 Franklin Ave E, 2415 2nd Ave, 524 6th Ave West, 2132 5th Ave, 1500 4th Ave.

The question is, will these buildings continue to allow STR. It's always best to have a backup plan in these situations. However, LTRs typically don't cash flow in STRs. What are your thoughts there?

Hi Sergey, 

I'd be curious to know more about the rules and regulations regarding STR's in the greater Seattle area. Where are you finding most success with your clients? Where do you suggest investing in STR's in this market and why? Much appreciated!

Hi everyone, 

I wanted to reach out to anyone who may know of lenders who have experience/expertise in lending on new construction DADU's or ADU's. With Seattle's recent re-zoning laws allowing for higher density lots, building DADU's and ADU's have been a hot topic in the area. However, I have yet to come across a lender who has worked on many of these types of loans.

Any and all help is greatly appreciated, thank you BP! 

Thanks @Jess Haas! 

Would you mind laying the numbers down on what it would like to finance a DADU? I'm unfamiliar with what new construction loans look like. 

Hi Liam, 

This was a great read for me. As someone interested in looking at AirBnb opportunities within the Seattle limits, this was very helpful. What was the building you bought your unit in? Would love to hear more about this deal. 

 Hi Micah, 

I'm also following this discussion and potentially looking to invest in AirBnb arbitrage. I'm curious as to why you say this model takes on "an enormous amount of risk"? It seems to me that in many cases, it might be LESS risk than buying a SFH in most markets and might be a better way for people to get started.

At the end of the day, you are only worried about your monthly rent and are not committing hundreds of thousands of dollars to an investment. Yes, OWNING real estate has tremendous upsides and advantages but to say arbitrage is an enormous amount of risk is perhaps a bit exaggerated. 

Again, I'm simply trying to understand your point of view. Any insight is much welcomed! Thanks. 

Hi Dan, 

Have you been able to build out your 'buy box'? This is typically a good place to start. Really try to understand what it is that you are trying to achieve from flipping real estate and work backwards from there. What is your ideal purchase price? How much money do you have to invest? Do you want to do cosmetic flips (less risk but also less profit) or do you prefer to do bigger projects? 

At the end of the day there are a lot of questions to be answered but I think the best thing is always just to take action. You will learn SO MUCH MORE by taking action and going through the process rather than being stuck in analysis paralysis. Even if it isn't perfect the first time around, you'll learn so much for your second project. Take a look at my most recent flip project via my profile, this was my first one and it was a great starting point!