The Magnolia House

This is the house that began our Real Estate Investor journey! We purchased this house in 2019 in downtown Bellingham off of a craigslist ad. We paid market-value for it, which at the time was desirable as properties were selling far over their asking price with multiple offers.

We completely rehabbed this property ourselves and got our first taste of what it takes to bring a centennial house back to life. The rental market at the time did not allow us to rent this property for the same cost of our mortgage however, because of it’s zoning and proximity to downtown we found a loophole that’d allow us to use it as a legal Airbnb. Due to Bellingham’s lack of affordable housing Short Term Rentals (STR’s) were banned in 2018. Our agent friend who helped us with the purchase of this property knew about the zoning laws and how to use that to apply for a STR permit through the city. That process included drawing plans, applying for permits, proper signage to help our guests follow city ordinances and of course inspections. We finished that process and the remodel in October of 2019 and we’re granted our occupancy the day before our 1st guest arrived.

2020 lockdowns hit up pretty hard as a new listing but we managed to adapt and market the house to traveling workers and then tele-commuters which kept the house full and our overhead covered. Bellingham experienced the real estate boom that most costal towns saw in 2020 and we watched our equity go through the roof. It was then that we decided to cash out on our properties in Bellingham and move those funds into more passive properties.

The Magnolia House sold in December of 2020.