Does Everett Have Affordable Housing Options? 3202 Lombard

After chatting real estate on the Live in Everett podcast last week, I wanted to see if there were any affordable home options available in Everett.

That’s when I came across: 3202 Lombard.

3 bed
1.75 bath
1,840 sqft (about 900 sq. ft. finished on the upper two floors, approximately 1,000 sq. ft. basement is only partially finished)
Built in 1920
price $329,000

As I’m writing this, the house has gone pending after being on the market for 16 days. I believe it still serves as a good example for our question: are there affordable home options available in Everett?

With a price tag of $329,000 I wouldn’t say that’s necessarily affordable in its own right (of course, affordability can mean different things to different people).

I believe this house could be made much more affordable using one possible tactic, though: rental income.

Any homes cost can be nicely 0ff-set with a few roommates. What particularly stood out to me about this house, though: the basement.

With a bathroom in the basement, nearly 1,000 sqft and its own entrance, this space could be a great candidate for a mother-in-law unit.

Let’s break down some cost examples.

And again, I’m just using this house an example as to how you could think of using rental income to make a monthly payment more affordable.

Let’s say the basement could be finished for $26k. This would bring the total purchase price up to $355k (If you rolled the basement construction costs into your mortgage and did a rehab loan).

If you did a 3.5% down FHA Rehab loan your monthly payment would come out to about $2300/month*. If you rented the 1,000 sqft basement for $1,000/month, your portion of the monthly mortgage would be about $1,300.

If you rented your two other extra rooms out on the main floor for $500 each, your portion of the monthly mortgage payment would be about $300.

(*Disclosure: I’m not a mortgage lender and factors such as interest rate, your credit score, etc would affect your exact payment amount and would need to be verified.)

Additionally, your mortgage payment will stay fixed while rents will likely increase over time making your portion of the mortgage payment even smaller.

Not to mention the appreciation in equity you’ll earn over time. Have you ever looked at what housing prices were 30+ years ago?

Owning a home, if you’re in the right position to do so, is a phenomenal investment. Using rental income is just one strategy to get your foot in the door.

If Everett affordable?

With a little resourcefulness and a few roommates, I believe it absolutely can be. I realize this isn’t an option for all, but it’s a fantastic option for some. It’s exactly how myself and many others have been able to afford their first home in Everett.

Any home you’ll want to get a good inspection and verify everything through the proper channels.

I haven’t seen 3202 Lombard in person, but again, it’s more the idea I wanted to convey. If you’re willing to rent some space, add a mother-in-law unit or even consider a duplex or multi-unit, rental income can greatly off-set your mortgage.

What do you think? Is creating a mother-in-law unit in a house or getting roommates a viable option for housing affordability?