Spending $100 Million on Real Estate: Seattle, Washington [HouseHack Trip 4]

this place called Redington Renton we're

going to rent

itself yeah okay okay

I didn't eat before just the case well

we got plenty of nuts uh if you want any

uh you know we got cookies spicy nuts he

really likes the spices I usually like

the salty nuts hey by the way this is

one of our shadows if you want to be a

Shadow and Shadow me while I explore

real estate check out the link down

below take advantage of the flash sale

we have going for Valentine's Day and

you'll enjoy getting in for the best

price possible why don't you park here

and go in the Jet Center look at that it

says Boeing Business Jets that's us

we're Embraer but you know they almost

bought Embraer but they missed out so

we'll use their facilities well we made

it we are just below Seattle and today

we are going to tour Renton Washington

this is a town of about 105 000 people

the median income here is about forty

one thousand dollars per capita which is

pretty similar to Gilbert Arizona where

the per capita income was about 42 000.

now I'm remember when you hear per cap

you think members of household you'd be

counting everybody in it right so

sometimes those numbers seem a little

low but what's fascinating is you have a

poverty rate of just five percent so

very very low poverty and we are going

to go look at basically The Burbs of

Seattle let's go it's a pleasure to meet

you absolutely this is exciting are

these fill or cut Lots out here these

are normally filled uh mudslides that

would be under flood insurance do you

need flood insurance here yeah okay

let's go check it out you have a buddy

yeah so the Cochran group yeah who does

all the construction out in Microsoft

okay Microsoft has canceled all of their

contracts with them for the next two

years no for building out yeah we're

building out offices lines like that so

that tells me they're not encouraging

their employees to come back so if they

are promoting them to hey work from home

maybe once a week if you're within range

right and renton's gonna fall right in

that spot ah because then people who

still have family here or whatever

they're still local but they're out of

the same how far to say the Amazon HQ

from here down so downtown Seattle like

Union from here you're going to be

wanting to take the 520 or the I-90

bridge across going 405 or you could

take I-5 it's about the same distance to

be honest but that's the nice thing

about here is your choices to those two

points nice from here in rush hour

traffic you're looking at about a 45

minute 45 is not that bad oh is that

normal so people are used to that then

yeah you were going to show me an

overview over here pretty much this is

the barrier that you want

you don't want to be bumped for

investment rentals on that side just

because of crime and things like that so

if you're looking for better schools

better communities you want to stay

above the hill here ah okay okay and

then we also have a five-star hotel like

right up on Lake Washington I see here I

see so this is kind of where all the

development shopping retail is going to

be right got it got it so a little more

industrial maybe exactly okay and then

what's where's Bryn Mawr so Bryn Mawr

Skyway is just going to be exactly that

right over there more apartment

buildings here more apartment more older

homes built in the 60s 70s and then

going up on top of that Hill is going to

be pretty much all of it I would say

investment purposes you want to stay on

this side this side because one if you

go up the hill over here you're

bordering into Issaquah school district

so Issaquah is you know kind of one of

those top highly rated schools and where

a lot of tech live as well so if you can

get along that border sometimes you can

get away

okay it can be Elementary Middle High

all three of them exactly okay I don't

imagine out here you'd have a lot of

short-term rentals it's mostly long term

if you see rentals here for the most

part I mean we're a very liberal State

here and so

um definitely they are cracking down our

short-term rentals they're only going to

allow in certain pockets of Seattle

where would you usually see those not

that would we necessarily want to invest

in short-term rentals I always like to

know the optionality for both yeah I'm

going to say downtown is almost a no-go

now like they're eliminating oh wow

which is why condos are just sitting out

there right now condos in the downtown

area 200 days on Market sure because

they propped up with the short-term

rental market that falls out you can't

afford it yeah and now we're starting to

see rent shop right now too so it's all

it's happening it's all happening yeah

yeah when did you all see sort of your

Peak your median price people right in

April April yeah yeah okay so uh rent

for like a 700k or in in Renton a three

and two what what are you usually

looking at for a rent this one in

particular we know this one's a little

on the higher end this is 950 2460

square feet three and two uh

um do you see people rent The View Homes

more or is it more buying yeah they'll

rent the viewers okay over in Bellevue

Issaquah too A lot of them have rentals

out there with lot Big Lots in Bellevue

even really because they're like what

one four median or something like that

uh home price or something like that oh

yeah

right now okay

um and the fact is if they sell they

really have nowhere to go so they're

either staying or they're moving out of

state uh where are people going is it

the same thing like Vegas Texas or Texas

Vegas these are the two hot spots right

now and then Florida's kind of there but

not quite got it how um who's coming

then if like for example Microsoft's not

doing uh offices right who's coming you

know I'll be honest with you I've been

getting referrals from out of state

really okay

it would be probably other people maybe

from either colleges in Washington or

something investors I mean investors are

hopping in here those so I would say and

it's interesting okay a lot of

individual investors or California

investors it's always

but for the most part retail buyers just

on

they're waiting out to see what happens

with the raids these you said are

downtown and these are usually around

500k right those do you see a lot of

long-term rentals on those I mean yeah

because it's the only place you're going

to find affordability and getting access

up North 500 for about a thousand square

feet five to five fifty is probably

going to be the average you find at the

bottom of the hill so it's affordable

because it's smaller then correct okay

not not necessarily because I mean it

might be desirable to be downtown here

or well no um just partially the crime

crime's been kind of so it's not

desirable downtown yeah not this Auto

downtown it's on this side of the hills

oh that's okay okay so so this is like

the cutoff get on the hill okay okay

okay go get on the hill yeah yeah get on

the hill and they don't do short-term

down there

not that anybody would maybe even want

to yeah nobody okay get on the hill okay

interesting so get on the hill for

Renton uh for other surrounding suburbs

is it a relatively a similar thesis yeah

like even downtown Seattle even downtown

Seattle you want to be east of the I-5

east border okay or closer to the water

side which is Far West Edmonds this is a

three into 1956 950 000 because of the

view probably about 200 000 bucks for

the view there this has been on the

market for you know I apologize the

printout might not be telling you that

but 245 days oh that's interesting your

client detail doesn't show days on the

market oh status date July 2022 but it

doesn't give you the Dom that's

interesting the MLS took the Dom away

because it's too embarrassing now the

market has shifted

see in the hot Market it's always zero

days one day but that's okay look it's

it's cyclical Market's a cycle so you

got the original 50s cabinets here I

actually don't think I've seen the

original 50s cabinets with this diagonal

to it these are actually great cabinets

usually uh you can adjust this a little

bit uh but this is incredible that's

that's actually pretty neat

okay so uh I didn't have water through

here in a while usually I like the other

water is off interesting okay

so let's see so yeah traditional three

and two I actually really like the three

and two model bedroom

Master no is that a closet

yeah okay yeah closet closet closet okay

so too bad here so the master to be

found

oh it might be downstairs let's see what

we got so maybe that was a two in one

this was originally a two in one maybe

and then we've got oh wow this this this

is much larger this really changes the

whole

uh sort of two in one 1950s although you

wouldn't get too many two in ones and

and given that this block is here this

brick

this was probably already built out back

then but this is a really nice amount of

space it's on the expensive side because

of the view so it's not something that

would be right for house hack but it

really gives you an idea you've got this

is the perfect size yard I'm not the

biggest fan of the chain link with with

sort of the rubber in it or you know

plants are growing out there uh but this

is a perfect size yard it's got plenty

of uh of concrete here minimal

maintenance that way it'd be nice to

have the green patch greened up so that

way you contrast a little bit from the

concrete but

okay

this feels what is this originally part

of the basement I wonder it heaters on

over here yeah see this feels like it

was built out of the basement uh just

because of obviously what we see here

but what I like about this is I could

see that judging by this I'm going to go

ahead and say that the house has been 80

rewired I do see the original Romex here

as well as an original

240 line here but that one's cut off you

have a a little splice here you could

kind of see that tape right there that's

uh sort of your original Romex but we've

got a nice new uh panel over here you've

got the arc faults those are those with

the uh before we look at that take a

look on screen here we've got the

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take advantage of that 69 off flash sale

through Valentine's I was with the uh CI

arc fault circuit interrupter test

button here that's a sign that this uh

was probably done post 2008 I would

probably actually say it was done within

the last few years here but Arc faults

are great

looks like a lot of the actual systems

of the house have have been well

improved and this is actually quite

impressive so this is your your

grounding ground bonding connector for

the gas line and this is a very

impressive setup I mean even how they

cable tied some of it uh they did a very

nice job so I I'm

those are the things you want to see you

want to see systems that are installed

really well

and uh and then ideally cosmetically

it's not great like frankly the the 50s

cabinet upstairs but then these systems

so great

kind of like that now also interesting

that you have an exterior door here

which somewhat implies that at some

point this would have gone to the

outside and they sort of Cinder blocked

it in

made a wine cellar or something okay

cool so so I would obviously check that

permits have been pulled for something

like this

what are you saying monkey what do you

think about this place interesting

layout

um it is it's kind of pulled the

fireplaces upstairs in the exact same

spot so these kind of one chimney baby

one chimney only one place with Santa to

come two fireplaces one chimney

yeah yeah this a lot of this must have

been converted from the uh there's no

traditional Master a lot of this must

have been converted from the uh from the

basement but okay and it's been here for

a while judging by some of the molding

yeah this this was all done later you

can see this was panel drywall did which

is neat so it's somewhat I mean it was

an original two-on-one and they probably

would you have seen two in ones

originally here in the 50s yeah okay so

I because I'm guessing this was a

two-in-one and then most of that was the

basement downstairs with these I mean

although the fireplace looks like it

could have been there but the other

areas look like they've been added on so

you would have seen two and ones from

the 50s yeah okay is it common to do

basements out here it's very common very

common okay this is a euro style but

we're gorgeous I love these I think HD

Supply sells in them it's so wet out

here their main panel is actually in the

house and then this is just an emergency

breaker for the fire department little

200 amp breaker in our area it's so dry

you have everything outside which I

always think is weird I like the main

panels being inside I don't want

somebody coming messing with my Breakers

Christian's asking you know how much

further for the bottom it we won't know

really until we see the signals I'll

tell you the biggest red flag I just got

for you know what are we in runville or

Renton

and it could be a red flag that maybe we

aren't a problem yet is you need people

moving into the area right and so the

drop-off of buyer referrals referrals I

really respect him providing us that

Insight I think he's he's very

knowledgeable of his market and I'm very

very happy that we're working with him

he knows what he's doing and that's what

you want you want the agent who's going

to give you the straight scoop because

look that might short term be bad but in

the long term who am I going to call for

the straight scoop when I want to go

buying right this is very very smart and

and uh there's absolutely a risk of more

downside

at minimum I think we have uh another

six months of downside minimum the

earliest bottom I could see for the real

estate market would be June uh that

would be uh your your first month after

the mayover month May comparisons and

maybe then we start seeing month over

month positive if if mortgage rates

maybe Trend under six percent right that

would be the soonest I'd say and that's

also kind of what we've been targeting I

mean quite frankly since like January

2022 we're like I don't know hopefully

the summer of 23 we may be able to go

shopping and so then we launched house

hack and we kind of built everything

around that thesis so so far it's

aligning uh and of course we'll we'll

see what happens this is interesting

these are newer so remember new is nice

new does not mean no Ed new has

potential we just need to spray paint

some mold in and then all the other

buyers go away oh we're still rolling oh

God do you see a lot of evictions out

here or uh no just because the I mean

the politics politics out here they

favor the tenants so I mean they've been

giving them every break that they can

yeah that's very familiar um there's

also the possibility that for investors

they're going to start attaching more

fees uh for more purchase property

owners yeah ah yeah so is it like City

business licenses that you do for

investors out here then exactly yeah

yeah so more City licenses yep okay I

mean eventually you got to be able to

get someone out right yeah yeah but it's

like six nine months probably it's for

sure you know doing a sheriff's eviction

back in the day it used to take like

three months but yeah now it's taking

yeah six to nine yeah okay wow maybe

backlogs too we used to be nine or uh

three months in Cali and yeah now it's

six nine but let's just play Never to

have an eviction are you seeing a lot of

layoffs right now yeah uh Amazon just

did a round of I think 10 000 employees

or something and that must not have been

fulfillment that was yeah a lot of it

was fulfillment and recruiting out here

oh we're recruiting out here there's

centers out here Microsoft it wasn't a

huge amount of layoffs there but they're

not bringing employees back so

everybody's gonna be just either moving

further out or just staying right in

this pocket uh Nintendo's over out uh

towards Fall City Issaquah

they had a small amount of layoffs and

then but for the most part nothing crazy

nothing out of the ordinary but I am

worried about tech uh moving forward are

you seeing uh a lot of real estate

agents unfortunately pull out of the

industry right now too yeah yeah I mean

even people at my own company like so

they completely removed like some of us

were paid on salary and things like that

salary's gone I'm not 100 Commish right

now wow this community will fall under

the Issaquah school district so you

basically just drive 10 minutes down

that road

thanks dude sorry 10 minutes down the

road oh thank you and you're getting the

the eight plus star rated schools I'm

clearly like Joe Biden here I gotta get

my that's what we're doing we're

modeling Joe oh no too small for my

giant feet a whole size six and a half

over here uh so sorry 10 minutes away

for the school yeah so 10 minutes from

the Issaquah school district Liberty

High School just down the street Maywood

Middle School all eight star rating plus

nice yeah and then um and on top of that

too a lot of home homeowners around here

in the area do just use addresses that

you know oh they do that here I know a

lot of people who will commute charity

45 minutes to drop their kids their kids

wow so it's that desirable yeah so I saw

the island Mercer Island yeah is that is

or did you like is it is it bad no

Mercer Island is the nicest Community

maybe Across the Nation I think per

capita wow the wealthiest people live

there oh my gosh but what's so your

median list over there it's gonna be

ridiculous huh 2.5 yeah okay yeah done

done with that like I said look like in

that super nice areas around here like

so close yeah

this is a

2006 for 7.99 four bed two and a half

bath 1956 square feet I swear I thought

that was the year for a moment this was

listed August 11th a day after Lauren's

birthday 2006. so I really like new

construction well

it's two thousandths plus it's like

newer 90s plus newer if I could pick 80s

I'll take 80s uh you know this obviously

it's like a 400 stove well probably not

with inflation eight hundred dollars

it's doubled everything's double but uh

yeah this this uh this is kind of your

sparkly white quartz over here I

actually like how they cut the edges to

give you a little bit more room in the

smaller kitchen they put poles on older

cabinets these are older cabinets that

have been painted and uh they did a

pretty good job I don't see any crazy

runs you know they they painted right

over their hinges oh here's some running

but you get that all right well at least

it's not so much on the outside but uh

yeah this new one of the other reasons

newer is usually nice is because you

have good floor plans so you've got a

little breakfast nook here uh family

room dining it could be here uh just

nothing in the breakfast up here this

let's see here see normal floor plan uh

we were what was it in Salt Lake that

ridiculous Second Story in and just some

of the Oddities that you see when you

get to newer you don't have that issue

you have a traditional here that looks

like it's probably the master you've got

traditional four bed and it's nice

you've got plenty of Windows plenty of

like I actually really love how they did

these windows now the reason I say that

is because my Builder uh built in 2008

for my home put Windows on almost every

wall and I can't I can't use the wall

which is annoying I want to hang Nerf

guns or something for the kids but I

can't because they're Windows everywhere

here they sandwich them into the corner

and they give you wall space which is

functional very good

I like this place

so obviously the goal would be to get

something like this that looks a little

more 90s for example if the entire

property still looked like this where

well this is this is actually still

pretty nice uh but uh you know you've

got a formica top over here a little

Wood Lamp if let's say this was

delaminated and and the Cabinetry was

you know water damaged and you've got

the linoleum floor over here and you

came over here to the bathroom and it

was mildewy right and now all of a

sudden you can actually take a 2006 home

and get something that is a wedge deal

and now you have 2006 bones that three

wire electrical system the better

Plumbing the the the copper repex water

lines the sewers better everything's

better right better for earthquakes if

you're in those areas they're insulated

so it costs the tenet less money uh to

live there again functional layouts new

is is very very nice uh these are just

two more bedrooms over here then we'll

go over to the master this kind of this

is great if and if this this kind of

thing is in the perfect School District

great absolutely great what do we have

over here so again hello sorry

Mikey

this is our room I keep going right back

into the closet again

uh yeah and I mean okay so

functional

usually while we kick out the door over

here I was thinking no door for the

toilet that's okay it works you got the

door over there by the shower and uh you

know a little bit you know clearly 2006

original Builder grade Master vanity

here nothing wrong with that missing a

little bit of mold and something like

this would work really well especially

if this is in a super desirable School

District uh

I like this yeah this this is very

functional two-story two don't no three

levels no never three stay away from

three stuff like this if I find them as

a fixer it's so easy because you go in

with 15 20K you're not doing structural

you're not doing Plumbing electrical

it's just the Cosmetics yeah it's like

these guys they painted the cabinets

throwing a new countertop done you know

and that's what everybody's looking for

right now uh yeah this is what they want

so we'll give the people what they want

what people do in real estate is is they

think they can squeeze everything into a

weekend and people have to remember that

your brain can only process so much and

you're gonna get exhausted you're going

to start playing on your phone more you

stop paying attention to the area you

stop asking intelligent questions uh as

Mikey's on his phone and I mean

intelligent well I don't have to

don't get it

it's it's really important for markets

that you're considering to be there

often meet different agents get

different perspectives uh and and really

become somebody who's part of that

community so that's what we're doing we

really see house hack over time becoming

a national brand what's beautiful is we

we have really a public Archive of not

just sort of our opinions and what we're

asking but the information we're

receiving which which some people might

think is is like anti-competitive you're

giving it away people forget there are

so many deals to be had out there I've

never in my life had a shortage of wedge

deals in any City I've gone into if they

just don't sit on the market you just

have to be fast and I'm fast this looks

nice by the way really nice contrast

with the white trim and the new white

vinyl windows the darker color looks

great unlike this one which looks a

little older which is perfect and one

owner home too so ooh I know what that

means that's great that's exciting so

um do you get moss growth on roofs here

that's very common that's very common

yeah and does that take a good chunk of

Life off or because yeah I mean a

30-year roof out here closer to 18 20

years okay because you're I mean there's

with the asphalt shingle there's no

really cleaning it you go wash it away I

mean you can you acid bath it maybe I've

never heard of people acid bathing out

here mostly it's just maintenance just

getting a guy just blow everything off

oh just blowing it off yeah okay I mean

everything out here is pine needles for

the most part I see okay

um but as far as moss growth like yeah

when we get heavy rain Seasons it

happens and it just dies off in the

summer maybe oh okay okay and then you

can blow it off there are people I I

don't know what kind of solution it was

but it's kind of like a white powder

that people come and put on the roof to

kill this stuff okay yeah any kind of

growth and Roots traps moisture and then

you get mold and and you really just

Decay the wood underneath the shingle

it's got a tombstone over here that's

awesome

this is great uh and then so this is a

three bed two and a quarter bath 24 32

square feet been on the market since

September 8th it was listed for 860 000

now only 700 000. they missed the 69.

damn

oh it's perfect I love it already uh I

don't like split level I will say uh but

we'll let's start with upstairs so

you've got the older carpet it smells

like insecticide the second I get into

it so

that's a great thing

um

the more you can turn off first-time

home buyers the better Thomas you were

saying to trition that there are a lot

of tech guys who want to throw money at

real estate but they they're not into

work like doing the fixer-uppers and

stuff like that so the gentleman who's

buying my uh auction property yeah he's

a Microsoft guy and he's just like hey

like I want to like start investing but

like I don't really know what to do and

so I'm help setting up with contractors

things like that he's actually getting

hard money loan through our private

lender wow so you got the acoustic

ceiling built in 78 typically uh uh you

could have asbestos uh it's still in the

asbestos era 78 was really the last year

but you could still get asbestos going

into 79 80s homes because people would

use stock supplies they still had they

just really stopped selling uh the the

product then you know you've got the

formica tops here you've got the older

Cabinetry you've got the classic uh

diffusers over here uh clearly 70s when

you see this kind of uh fireplace the

stone fireplace is super common

obviously uh look the split level it'd

be tough for me to get convinced on a

split level but condition wise this is

perfect uh it is though I mean the more

I look at it the more it's it's not

sometimes you get like a tri-level split

this is really just a split in the mid

by the front door and then you only have

half a staircase for up and down so I

could actually be convinced by that

usually I wouldn't be all the original

Cabinetry doors this is a single owner

property we found out uh Thomas let us

know but this is your classic Reef floor

repaint new electrical switches Outlets

you've got to make sure you you prime

these really well Hollow core doors here

Prime this paint it scrape the ceiling

this is one two I think we said this was

a three oh this is a three bed okay so

three bed and then what is good this is

your master here we've actually got oh

these are like the worst so these are

the old uh panel kind of showers here

and they always mildewy on the inside

which is actually great right

you can glaze these but I you often end

up replacing these and going for

fiberglass the lifespan isn't so great

on these and oftentimes you go

underneath them if there's an underneath

and you start already seeing uh leaking

this is uh this actually looks like a

decent deck it doesn't look that old I

think this is

um sort of a man-made wood like a vinyl

right which is what you want in this

kind of weather because you're going to

have a rot like crazy out here

you've got your gutters here you do have

obviously your typical Lumber and

framing but there's not actually a lot

of rot here this is it looks like

actually a pretty decently maintained

home and they actually painted the

lumber out here with what looks like an

eggshell or it doesn't quite like

semi-gloss but eggshell is actually what

you're supposed to well eggshell or

something else is generally where you're

supposed to paint Lumber most people go

flat though because it's cheaper now you

could do a lot by just trimming a little

bit back here obviously keep the trees

they look amazing but you could do a lot

by trimming back here I love uh the feel

of sort of the moss growth I mean I

could really see this as like living

here like a little Zen Garden or

something like that but I don't get

personally attached to my property so I

wouldn't like be installing Zen Gardens

I have something to show you oh I would

love to see it I don't know if you've

already gotten this but let's see it it

seems exciting oh here we go

2500 the ugly ah I missed it I missed it

it was the curtain and you know what

it's look what it's covering up yep

what's it covering up brand spanking new

window brand new vinyl window here they

probably pull permits for all this stuff

too look this is like the definition of

wedge old cosmetics new bones like I

said outside very little rot well

maintained the deck looks like it's

upgraded and newer wood copper plumbing

right there although in the 70s they

were probably built with copper plumbing

actually it's a nice opportunity to open

up this wall a little bit here assuming

it's not load pairing uh that's what it

means did you what did you say this

would be is going for fixed up right now

it's fixed up right now you can get a

mill easy for it it's crazy really

that's incredible uh and uh that's not

made pricing that's like now pricing

yeah and that's just because they got 20

21 new construction cops just literally

down the road over there wow that sold

for about 1.35 130 for new construction

okay so one here remodeled the older

part of the neighborhood but maybe a

little larger lot or RV parking or

whatever maybe you're not getting that

there so you're sitting in the middle

you're thinking yeah wow that's awesome

oh yeah this would all be one consistent

flooring because look at that you got

three floors right here together right

just luxury vinyl plank you know

something typical yeah

so one of the downsides though of the

the older floor plans again is that it's

tight tight

but this looks like laundry over here

yep laundry again new windows surrounded

by old a lot

yeah this is good this is good oh my

gosh there's a whole could you miss a

lot larger did you make this two

bedrooms at uh literally make it an

extra hallway two bedrooms yeah right

yeah yeah you could these are plenty of

plenty big rooms to make two more

bedrooms here absolutely yeah and then

you take it from a three bedroom to a

five bedroom yeah you don't need two

massive family rooms if somebody wanted

it as a playroom then you have two rooms

next to each other that are playrooms

it's not a bad idea yeah you have uh

vents for both of them you've got

electricity you've got windows for each

of them you know right right yes right

here right over here yeah exactly yeah

this is great I mean this is this is

like walking into what a wedge deal

would be I uh offer it to this house

listed at 700 what offer would you put

in I mean I would probably start with

like a verbal at 6 25 cash close in

three days or whatever right you know

they might tell you go pound sand or

they might counter against 650 you know

I think this is the kind of person that

uh is selling that is exactly what we

would want to buy from but it's it's

look it's not selling right now because

even at 700 it's overpriced well they

dropped it from eight yeah well how long

ago 8 20. I can't remember yeah but look

if they dropped it from eight any more

than three days ago and they still don't

have any offers it's not a seven either

so something like this this size even if

you made it that five bedroom like you

said

it'd be interesting what the what you

could actually get in rent out here you

definitely run some numbers but yeah

you'd probably still be at I don't I

don't think you can get more than four

four five four or something like that so

ideally if you can get it like six six

hundred even that's nice you know I know

a lot of people in the midwest they're

like oh one to one Kevin one to one but

like remember we want wedges that's

where the big money is coming from for

house hike is the wedges uh not this

like 10 cash on cash return Although our

actual returns could be in that

neighborhood or even substantially more

with uh with with the wedge process

because you know we were talking about

this the other day how the rates of

Returns on a wedge deal year one could

be you know 150 year two you got on like

50 30 20 you know you kind of you scale

down because you're spread you're

buttering out the wedge over multiple

years basically if you want to learn how

to become a millionaire in real estate

make sure to check out the zero to

millionaire real estate investing course

link down below and use that coupon code

before my birthday because the price

will change good job man thank you for

reminding me McKay is actually one of

our course members you've been a course

member for a long time I got this job

that's crazy that's wild I took the

YouTube course oh wow that's awesome yup

is it good loved it I'm here because of

it you tell me am I good you're great

man all right let's go so the rents

definitely fell so that that hits the

numbers a bit and then that also makes

me think you still have some time to go

because 26 if you can't break three on a

700k or

it's a little weak and and one of the

problems you find is when you start

getting larger sometimes you start

getting that squeeze 2400 square feet

maybe oh yeah so it's been sitting for

another month and a half already yeah

yeah thank you for that yeah yeah I

think exactly so so 700 is even way too

high and and with the rents you wouldn't

even go 625 you'd go I mean at that rent

you've got to be you know in the fives

um

yeah and then even then you want to

evaluate how much of a wedge am I

getting here uh cosmetically perfect

numbers TBD but then again we're not

ready to buy see what needs to happen is

we need to get to where we think the

market is at that bottom because then we

can actually sit down and say okay this

is what rents are now the last thing you

want to do is buy Thinking you've got

you know a nice big wedge and you're

going to rent it for something and you

actually look down and you're like crap

that's a lot smaller than I thought a

little tough to tell right now but very

very rural out here rural is nice for

for a lot of people they like that but

for house hack it's a lot of Maintenance

you're dealing with a lot of wildlife

you're dealing with larger Lots we don't

want to deal with larger Lots uh it's a

lot of burden to put that Landscaping on

the tenants it's harder to rent when

you're in a rural area because you have

less demand for these homes again this

is why the best home is a tract home we

should really narrow start narrowing

them down to to track McKay was talking

about the agent's brokerage a little bit

about how this is uh a sort of almost

like an eye buyer brokerage they remind

me a lot of the Redfin agent mod model

where they pay their agents potentially

and I don't know this I'm speculating a

little bit of a lower commission but

they do all the advertising for the

agent so this is why the agents get a

lot of the volume and their website

sunday.com

s-u-n-d-a-e.com actually looks a lot

like what potentially the future of

house hacks website would look like

where we could just directly have a

website where people can sell a home

directly at a house like if they wanted

to we could in theory advertise that way

if we needed to or if somebody from

YouTube wanted to submit a deal for us

off Market or whatever now potentially

we can we can be our own source of deals

as well as using agents but yeah the the

sunday.com website sell your dated house

as is for the best price I mean

basically they're just looking

specifically for the kinds of deals that

we are looking for and that's the kind

of relationship that we want to build so

we would want to use them as well as do

things like that on our own so this is

great if your clientele here is Tech and

Tech is getting laid off and there's

absolutely no reason to live here for

the weather

and your job is gone and Microsoft is

canceling contracts with office Builders

first of all short steel case second of

all it's a problem I mean these this

looks like like an 86 neighborhood

um it could be 90s oh it looks so cute

with like the steam coming out of that

that's yeah I mean that's nice I I'd be

this could be newer than I think they

are they've already got new dual pane

windows but those are retrofits they've

got the older aluminum windows this has

to be an 80s neighborhood

uh that's a newer garage that's actually

a nice garage door and I love the lights

they put up which house are we looking

at where's the house oh we are looking

at the one with the nice garage doors oh

great the price reduced signs that's a

throwback to away when was this bill so

this one's built in 1984. yes got it uh

57 days on market for solicit in

November originally at 7 20 down to 695

for 6.96 right oh yeah okay all right

perfect so the nice thing about this

location is you have a major hospital

just down that road where we're just at

ah Valley Medical so it's one of the

biggest hospitals here on the east side

so you're away from that Tech demand

exactly I'm good yeah it's just old it

could be the Christmas tree pie I don't

know here's your kitchen

let's see we've got see these are

actually newer cabinets and initially

when I was turning the corner they

looked uh potentially like 80s darker

but these are newer uh this is these are

actually nice these are like your

espresso colored cabinets

uh not the biggest fan of the lining on

the inside but that's okay uh nice

cooktop yeah okay I mean this um it says

some new elements right they've done

some upgrading to this it's still mostly

80s uh they've done some Cabinetry work

but uh yeah definitely a little bit more

on the dated side and I love it when

carpet starts losing its stretch that's

just a perfect sort of wedge deal uh

sign I it's it's not damaged enough to

really be a heavy wedge but you do see

most of the windows have been replaced

at least downstairs you

um in the older doors the older paint I

mean the classic stuff that we look at

what I like though is understanding this

neighborhood because apparently it's

close to a hospital so you've got a

different kind of uh buyer or tenant

than you would somebody who's maybe

commuting from Seattle although I wonder

probably about what 45 minutes from

Seattle yeah okay so about the same if

we can Market through YouTube exactly

what we're looking for What markets

we're looking in and uh you know people

maybe watch the channel because they've

fallen in love with all the value we're

providing on all these trips well now

hopefully people are watching our

channel that are in areas like Gilbert

Arizona or let's say here Renton uh

Washington or wherever we want to buy

and people are watching going oh this is

interesting going to all these different

cities we're actually building a network

of people who are interested in in real

estate and they might end up knowing

people who want to self extrappers and

they might refer those deals to us and

then so what we can do is say hey if you

refer a deal directly to us at

houseac.com we'll give you some kind of

finders fee right so we can basically

pay anybody we want a finder's fee we

have to make sure we're compliant with

like state laws everywhere but generally

that's not a problem and uh and then we

can find wedge deals directly rather

than going through that auction process

that's the downside as we were just

talking about about Sunday is you're now

one person on a list of maybe a hundred

other investors so what they're doing is

they're purposely listing them low to

get a ton of offers which is fine you

can still get a wedge deal in that model

but the seven day minimum weight sucks

like I like it when properties come to

me and and I get the calls because I've

got the relationship with the local

agents yo Kevin this deal is coming up

we're going to list it on Thursday we're

letting you know about it three days in

advance can you be here to see it

Wednesday yep perfect we'll we'll send

somebody from our local team more will

not report it is really what we'll do in

the future is we're not going to hop on

a jet every single property right uh it

won't make sense unless me Kevin is

paying for it like me Kevin is paying

for a lot of the Jet right now right

that's important you know I don't also

don't want people thinking like oh my

gosh this entire jet househack is paying

for this is not even the case at all

houseac hasn't been built a dime for the

jet in the future we will once we pick

our areas it won't be an issue to just

be there a week later and bundle all of

our purchases and go look at 10

properties in a day and they're all

properties we have offers on or that

we're under contract on best case

scenario and we give them that rubber

stamp which we should know the area so

we we should never have to go to a

property to sign off on an offer or or

really even close the deal we will uh

but uh we shouldn't have to because we

should become so expert in the

neighborhood we already know everything

about the neighborhood oh my God I just

fell in the mud

well this is the last stop

this has been on the market for 98

cumulative days original is priced 720.

now listed for 680 000 four bedroom two

and a quarter bath in Benson Hill area

of Renton Benson Hill yeah

Valley Medical literally three minutes

down the road over there you got Ikea

five minutes down at the bottom of the

hill I'm in I love Ikea uh I also love

that that person spent all that money on

a metal roof uh that's a sign they want

to stay here that's a great sign because

that is a rip-off that's a good sign

this is gorgeous although mismatched

color that doesn't work and the edge is

involved that's okay

just kind of quit during the project it

does feel that way different luxury

vinyl planks and hamster smells huh

okay oh like you just put down like the

new stuff for the hamsters you're right

yeah the bedding or whatever and then

there's that flooring it they ran out of

flooring maybe okay

um interesting they put the white

baseboard next to the cabinets which is

a problem because they probably went

either primed baseboards are not painted

or Ultra Pure White next to the white

cabinets which are actually an off-white

and now they make the cabinets look

yellowed especially with these yellowed

lights so I wouldn't have gone with that

baseboard move but they did that over

here as well this actually could be Ikea

feels like Ikea it's not Ikea it's um

pretty close oh no these are the Lowe's

ones I'm pretty sure I'm gonna figure

out how to put it back now the Ikea ones

are easier to put back

ah oh did it no why why why do we do

this to me you know they actually have

outlet covers that would cover the

actual Outlet too and a new face plate

that's like 4.99 on Amazon and then it

would make the whole thing look like not

a big fan of the multi-colored flooring

nice backyard it's got that family

friendly backyards back here oh I love

the maple too big though probably too

big for houses way too much here too

much yard

too much house

smaller houses are better for house

hacks smaller newer

all right let's get some coffee let's

take a quick look

this is like 99 cent flooring

dude the amount of flooring they chose I

swear they took remnants of flooring

because it's like every room is a

different floor it's a terrible idea

what's this one heck of a

it really looks like somebody stopped

after this project hey honey can you go

paint the medicine cabinet today sure

I'll bring the rag it's sad because uh

you know this is like an insult to real

estate

you know these things are like 12 bucks

and they left the rusty one I mean at

least it's not wobbly but yeah

it's the cheapest tile you can get

um

did okay I mean they did they didn't

wash the grout off it doesn't surprise

me let's go get coffee what what do you

think for rents out here ballpark if you

had to say you'll get three thousand

yeah yeah okay thank you so much for

showing us these properties out here in

Renton Washington can you shout yourself

out your company out tell us about

yourself anything you want to pick yeah

my name is Thomas and I work with Sunday

real estate we're the off-market

property platform we work with sellers

selling their properties as is getting

them cash advances and getting them into

good situations and we represent a group

of investors that buy homes with heart

so definitely call me

206-466-3041 and love to get you guys

set up and on to your next stage in life

how's the area around here we're new

from here where are you from California

yeah what California Ventura under Santa

Barbara I don't know San Jose why'd you

move here oh

New Orleans the best yes why don't you

go back where's my business here because

the business here if you could move it

over there would you do it yeah yeah

well a couple years oh oh you're already

planning to move

wow everyone's leaving everyone even the

Espresso shop is leaving I'm really

getting that Vibe out here that you've

got you know a lot of kind of farmland

and then you got infill of like 70s and

80s neighborhoods not too much new

construction out here which is fine we

like 70s and 80s you know it's all right

you know like Ventura is not all brand

new either but I don't know how I'm

feeling on the rankings versus like

Gilbert Arizona boy that was that's nice

and I think the biggest thing that's

killing me is uh everyone's eating

it's concerning I hear that I'm going to

keep hearing it oh the toothpick dude

that's so bad what do you think about

this this place this city I like it it's

very very rainy would you move here

depressing me personally it's too

depressing the rain all year round I

agree or anything no no black large

black

[Music]

[Applause]

yeah

me too yeah Arizona

Rock Bottom I don't like Seattle you

don't like it I don't like it does

people want to leave

cold too much land is he okay but

everything here very high for low class

people here very helpful we're living

here and then Tech is doing layoffs I

hear yeah

Easy Living how Cheapo flights very easy

to believe you know yeah but here okay

low cost remote tape

that's why you see homeless people

everywhere here problem is tenants if

everybody wants to leave and you're

constantly dealing with people gtf owing

because it's like you got High Cost of

Living and this weather

why would you live here I I don't get it

it makes sense if it's a job like Oh

Come be the CEO of Google you just have

to work in Seattle I'm like oh okay I

mean I I like YouTube but but like sure

right yeah but like otherwise why this

is one of the tech centers like I think

when I think Tech in in the US I think

San Francisco and like Silicon Valley I

think Austin I think Seattle yeah but

yeah that's the thing also see now

they're starting to move South you get

that Tech that's like okay people want

maybe some sun right so so how long is

Tech going to be Central to the the sort

of liberal West Coast you know what

happens if Microsoft's like let's pick a

cheaper place for everybody to move to

you know we can do so much remote now

great Exploration with Thomas for Renton

I have to say I'm not convinced on the

Seattle area yet I'm not gonna rule it

out maybe it's worth checking out some

other areas I did like some of the

properties we looked at uh definitely

looked like we were looking at

potentially an overpriced wedge uh which

is okay you can negotiate down some of

the newer construction was nice

especially in that Special School

District but I don't even know if I

could track in on employees if this is

what the weather is like 90 of the year

that's what folks are telling me I gotta

be where the sun is and if I lose any

tenants because of the weather I'd

rather not I'd rather be investing

somewhere people want to move to not

from we got a lot of insights here that

a lot of people unfortunately are moving

out and excited to get out not many

people coming in real estate agent isn't

getting a lot of referrals of buyers

coming in more referrals people going

out it's a red flag so that's a rat

thanks for watching