All Forum Posts by: Jake Alger

Hi Aidan,

I absolutely agree with what @Dave Skow has mentioned above. Getting a pre-qualification and knowing where you financially stand, as well as what options are available would be the first step. There are some local lenders near us who are awesome at explaining different financing options and working with first time homebuyers. 

If you have good credit, 3% conventional options do exist. In terms of FHA, just as Dave said, try to avoid them, but sometimes they're the best/only option.

While you can go through your typical, every day bank, I would strongly recommend seeking out a credible, local lender. I’d be happy to recommend a few.

Hi @Sean Autry,

Absolutely, I look forward to it! Safe travels!

Hi Matthew,

A house hack in Seattle is completely within reason.  If your goal is looking to lessen your total monthly payment, and not completely cover it, you'll be able to do so.  Your budget / price range, and other criteria would somewhat dictate which areas you'd want to search within.  Some areas you might consider close to the city/down town would be Greenwood, Fremont, Capitol Hill and U-district.

Hi @Sean Autry,

Absolutely that makes sense.  I like how you are "pre-planning" for the "just in case" moments that definitely occur in Real Estate!

No problem, glad you were able to check them out (Wallingford and Fremont).  I'm sure they were buzzing with people today.

The city's attitude to STRs varies.  There were some rules put in place a few years ago that limit STRs for new owners and require licensure, etc.  I don't recall if those rules are still in place or amended.  Either way, there are limitations to some extent for anyone who isn't grandfathered in.  The idea was to create a more "level playing field."  So, while they are allowed and somewhat encouraged, it's not a free for all by any means.

In addition to the city's rules/attitude, it's imperative to know what rules an HOA has related to a property. More and more HOAs are limiting STRs and generally define an STR as anything less than a 1 year lease. This of course varies by HOA and not particularly by neighborhood.

@Sean Autry Capitol Hill and Greenlake are very solid choices. Lots of rental potential particularly in those neighborhoods. I would also add Freemont, Wallingford and perhaps U-district. 

Cash-flowing properties are hard to come by but are available. The issue here is what type of return you’re looking to achieve and how you calculate it. If you are looking at an appreciation strategy, you’ll have opportunities, it’s just a matter of price. If for instance you’re looking at achieving 10% cash-on-cash, it’ll be a lot more difficult and may require pushing the geographic boundaries further north and south. 

Any of the neighborhoods mentioned will support long-term rentals, but some you may need to complete a more extensive rehab to to have it truly cash-flow.

Hi Sean,

It’s a beautiful weekend to be in Seattle! This weather is amazing and there’s so many awesome events happening. 

Choosing a neighborhood over a weekend would be difficult. I applaud you for renting a car and driving around! That’s the best way to get out and explore new areas. 

Each neighborhood has its own “personality” so to speak. Freemont / Wallingford are great areas for restaurants, bars and tends to be a younger crowd. Magnolia (little bit further out) has great views.  Queen Anne is a great location as well. Closer to down town I’d say Capitol Hill, Lake Union, Montlake, Madrona, the Central District. 

Each of those locations have drastically varying price points. With a budget and strategy in mind, that may help narrow the location. For now, I’d recommend just driving around and see what areas you tend to be attracted to. 

Hi Eugene,

Welcome to Seattle! 

House hacking is definitely a strategy many people have utilized in the past few years for our area. It allows for cheaper living and in many cases, allows for closer or more desirable neighborhoods to be within reach. 

If you’re considering doing the AirBnB approach or rentals within Seattle city limits, you need to be well versed on the landlord / tenant laws. They are much stricter and are always changing. 

A “live in flip” is another great strategy, provided you don’t mind living through a renovation. I did this with my current house. Purchased it knowing it would be a project with the intention of selling after 2 years to avoid capital gains. 

Ultimately it comes down to your overall strategy and what you’re comfortable with. The neighborhoods you mentioned are great areas, close to down town and are always in high demand.

Hi Abe,

Welcome to BP! In a few months, I suppose a “Welcome to Seattle” will be in order!

I too come from a background in software engineering. I’m also a numbers guy and analytical thinker and would argue most “techies” are. Since being an engineer I’ve turned full time into Real Estate in the Seattle area.

You’re absolutely right in saying that real estate investing is a long-term commitment (if that’s what your strategy entails). ​Long term outlooks tend to be for those looking to build wealth that can be passed down from generation to generation. It also allows for financial freedom or early retirement.

Your goals of matching your salary with RE income is awesome. Equally, attending local meetups and networking is exactly what you should do. Building up a network of professionals and people who have “been there, done that” will only help. BP is a great community to start with and will allow you to continue building your knowledge and resources.

 I agree with this entirely. I too have spent lots of time in random places writing, countering or backing out of offers for clients. The reason: time is of the essence. There’s a lot of money at stake for my clients no matter which side you’re on, so the best option is to be on top of your game at all times. 

Glad this can be a lesson learned without money lost.

Best of luck on the next one!

Hi Nitin,

Investing local to where you’re living is something many people feel most comfortable with doing. It allows for them to keep a watchful eye on the property and makes them more available should any issues arise with the property.

Investing out of your locality and in Seattle being that you’re at least familiar with the area and frequently travel here, wouldn’t be a deal breaker in my opinion. Having either a good property manager or points of contact would be crucial.

In terms of what investing is like here, it depends on your strategy. If you’re looking for a rental property I would say look outside of Seattle city limits. The rules and regulations pertaining to landlords and tenants are very difficult to adhere to for most people’s strategies and liking. Also, it depends on what type of property and price range you’d be looking into. There’s great areas outside of the city that have plenty of room for growth and are still commutable for those working in and around the major cities.