98117 Pricing Specialness

[explorer]

I have yet another example of the 98117 neighboorhood "specialness" in spite of the overall bubble deflation. I also am looking for other strategies on how to deal with it, since it is the triplex I live in.

I have noted here before I was condo converted out of my apartment last September, but now am looking at having to move again this September when the lease is up, if the building is sold. Then the overpriced rental nightmare begins again. Unless I can buy it. Will provide NWMLS # privately if that is more helpful. The listing was published this week.

Stats:
2 unit triplex-- 2 side X side and one daylight basement units. 2 bd, 1 ba ea. Top two units have attached garages. Wood fireplaces in all units.
Total 3,750 sq ft, corner lot, no yard, but landscaped bushes, almost all sq footage is living space. Kitchen and bath still original 1950's tiled. No major system work seems needed.

Purchased by out of state owners in 1997 for $300K in 1997, structure built in 1954.
Current KC assessment: $494K
Zestimate purchase price: $680,500
Windemere listed at $699K!

Improvements/maintenance: Gas forced air heat conversion from Oil, New Roof, 3 years ago.
Solid structure, plumbing OK but older, brick exterior, but original single pane and leaky windows, Front unit gets a lot of street noise.

I could afford to offer $450-500K (conventional), as a first time buyer, and still do OK without raising the rents on the other two units. At anywhere near the asking price, I am looking at a 30-40 percent rent increase min. when the lease is renewed just to cover the mortgage for them. Someone posted a formula for determining a fair price for the Seattle market, but I could not find it via the search function. Any opinions on what they might get?

One option I might consider is a owner financed option with an FHA for me, if that is possible. Does anyone think that is worth persuing, or just try to negotiate a minimal rent increase on the next lease?

Thanks for any productive replies.

[explorer]

Correction to the above: It is a THREE unit triplex of course.

[Markor]

I recently saw a case where a house listed at $810K sold for $685K after a few weeks on the market. Maybe state your case about what you think it's worth, and see if they'll bite.

[Cougar]

My biggest complaint in my rental is the windows. They are 20 years old and are a great source of energy loss both in the summer and winter, plus noisy.
Get a ball park what it would cost to replace all the windows especially on a brick structure with specific sizes needed. Replacing plumbing is a nightmare expense and at 54 years old it's time.

It sounds like you will be financing a large amount of the price. Do you want to live there for 10 years or more? If not, will 10 months of median rental x3 pay for your overhead, (taxes, insurance, yard care, maintenance, water, sewer, etc) Put the numbers on paper to see if your income can handle it, and more importantly do you want the responsibility?

Two more years of renting will be cheaper and less stressful in the long run.

[ira s]

Explorer,
It doesn't sound like it will pencil out, off the top of my head. But...Are the current rents significantly below market rents so that you could raise the rents by 30-40% and still easily rent them out without getting stabbed by your grateful tenants?
Assume your current rent is 1000 and the other two are also 1000..that'd be 36,000 gross per year, subtract 10% for maintenance, 5% for vacancy, taxes, insurance before you even factor in the financing. If it still looks like your living costs will be significantly reduced as a result of purchasing the place, then maybe it's worth pursuing, but off the top of my head, I'd guess not . Send me the MLS number, I love playing with numbers.