Operating a Clean and Sober House

Hello and Happy Thanksgiving!
I may be the worst blog updater in history… Lately, I’ve had a lot of questions about the clean and sober house that I own. I talk about it in depth on this podcast episode, but for those of you who don’t want to listen/want a quick idea of what the heck I’m talking about, here it is!

Long story short, my dad and I formed an LLC to purchase a single family residence a bit north of Seattle, WA. It was already operating as a clean and sober/transitional/halfway house, but was run rather poorly (violating lots of building codes and occupancy laws). We bought it knowing that we would need to finish the basement, getting proper permits and bringing everything to code. In fact, there was actually a cloud on the title when we purchased- the basement had been condemned, and the owner fined enough times that it was pretty clear he had no intention of fixing anything. We were able to get the cloud removed so that we could purchase the property free and clear. This required us to have a notarized letter agreeing that we were going to apply for permits and get everything fixed up within 6 months of purchasing (more about this and my contractor horror story later!)

At that time, the bid we had to get the basement livable was $14,000 and 2.5 weeks- not too much for a high priced area and some significant renovation work. Our total cost, after getting totally screwed (our fault! Valuable lessons learned…), getting fined twice, and having multiple contractors work on the project is about $42,000. Luckily, the rest of the house (8 tenants) were able to more than cover the costs of maintaining the house for the year the basement has been under remodel.

Now, for the FAQ!

1. What the heck is a clean and sober house?
b. Our tenants are pretty much the bottom of the barrel. They have no credit, oftentimes they have criminal histories, a drug-laden past, homelessness, have been a victim of domestic violence, you name it. However, many of them are great people who completely deserve a second (or third…) chance.How do you get paid? Seems like you would never be able to collect rent from these people.

2. How do you get paid? It seems like you would never be able to collect rent from these people.
b. Totally valid! Many of my tenants are on vouchers. Snohomish County (where the house is located) has a lot of great programs for people in recovery, with bad backgrounds, disabilities, limited or fixed income, etc. Generally, about half my tenants pay me in cash, and the other half is on some sort of voucher or program that mails me a check. I have only had one issue with non-payment. It was right after I bought it, and I kept letting the woman in question pull one over on me. Months went by, and I realized she a) was not going to pay, and b) owed me about $4,000 in rent and late fees. Since then, I have had a very strict policy- rent is technically due on the first, but I collect on the 5th. If it is not paid in full (with a couple minor exceptions for those who have a good history), they get a 3-day pay or quit notice (Washington’s official beginning to the eviction process). The vouchers generally take 2-3 weeks, so I do make exceptions for those, since I know the rent will be coming.

3. Do you accept criminals?

b. I do! Within reason. Anyone who is convicted of a violent offense or is a Level 2 or 3 sex offender is not someone who I will accept. Petty theft, drug use, etc generally is ok. I always ask people about their histories, and they have generally been pretty honest with me (I also look up their record on the database to cross-reference).

4. How many evictions have you had?
b. Officially, none. I have had to kick people out, but no one has ever refused to leave for more than a week at most. The thing is, when one person is acting out, it causes disharmony among the rest of the tenants, and they do not make it a fun living environment for the offender. They also know that they don’t need to have any reservations about calling the cops if they strongly suspect drug use or illegal activity in the house.

5. The big question… Is this profitable?
b. Very. We financed the deal with a commercial, 30% down loan. The seller financed a small portion of our down payment. For the last year, with 2 double rooms ($450 each) and 5 singles ($600 each), our monthly income has been $4,800. Our mortgage is $1,360 and utilities+ insurance generally run about $650, and management is 9% ( I self-managed the first 10 months, but recently hired someone to manage, as I’m having a baby). Oddly, the city required us to operate as a non-profit, so we don’t pay property taxes. Once the basement is finished (I’ve been saying in two weeks for the last 2 months, I think! But for real, it’s almost done.) it will add another $1,800. With a $99,000 downpayment and $42,000 in rehab, that ends up being a 45% annual cash on cash return. We purchased the house for $375,000, and based on the way the original appraisal evaluated it, it will be worth about $600,000 when completed, which is nearly an 11 cap… Completely unheard of in this area. (Note that I did not account for maintenance, cap ex, vacancy, or other expenses here, simply because our actual additional expenses have been nearly non-existent thus far. I always recommend setting aside 3+ months of reserves for maintenance and capital expenditures.)

Well, I think that about sums it up! Don’t hesitate to reach out with any questions.

I’m on a podcast!

Recently, I had the awesome experience of being interviewed for a podcast. I was super nervous, but my interviewers did a fantastic job of editing out my “umms” and likely panic-induced mouth breathing (I’m sure THAT’S why my boyfriend often calls me a dragon…) Anyway, we primarily chatted about my experience owning and managing clean and sober housing, but we also delved into construction projects gone wrong and building wealth at an early age.

Check it out here and let me know what you think!

mil rei.jpg

Buying a House- And Why You Should, ASAP

Buying a home is something many Americans dream of. Sounds like the life, doesn’t it? A home with a fantastic spouse, great backyard, maybe a kid or a dog running around… #goals, amirite?


Now, I don’t know where you live, and maybe rents are $200 a month while the average home price is $750,000 in your area. I have no clue. But in the vast majority of cities and suburbs, it is quickly becoming much cheaper to buy than to rent. Of course, the closer you get to a downtown area, the more expensive both rents and homes will be. However, in many areas (Seattle certainly included) you can rent a place 10 minutes from downtown for not a heck of a lot more than the same place 20 minutes from downtown. Or worse, you have to drive 15+ miles away (and around here, that’s about 45 minutes with traffic) in order to get something affordable. If you’re really lucky, you have a nice landlord or you’ve been in the same apartment for years or you have rent control and have a great place for a great price.

Closing day!!


When I moved into my old two bedroom apartment with my old roommate, we were pumped to pay $1,450 a month to get a crappy 1950s apartment with terrible parking and 0 amenities about 10 minutes from downtown Bellevue (a city/suburb of Seattle) and 25 minutes to Seattle proper. Long story short, she ditched me and the lease a few weeks after move in, and by the time the year lease was up, I knew I needed to renew. At that point, I was starting to think about buying a place, and didn’t want to have to deal with moving, losing my deposit (who ever gets their deposit back?!) and being locked into another year long lease. They informed me that they were raising prices, and the new lease price was $1,950 for month-to-month, or $1,850 if I wanted to sign up for 6 months or more. WHAT?! Well, at that point, I had no choice (and no roommate!! Eek). I signed for 6 months (thought I would save money, I did…. hmm. Not so much). I was able to rent the spare room on AirBnb and stay with friends/family a few times to make ends meet, since I couldn’t exactly get a new roommate for the 2 or so months I would be living there and then say hey, sorry, you either have to take this monster lease over or leave.

Right off the bat, I knew I wasn’t going to be able to live in the location I wanted. Even at $1,850, my apartment was pretty cheap for the area (it’s a place where you can easily pay $2,000 for a crappy, 250 square foot studio), so I knew there was no way I would be able to buy something and keep my payments lower than that. I wanted something well under $1850, with a spare room or two so I could rent it out if needed. I ended up moving about 30 minutes north (which was actually nearly equidistant between Seattle and Bellevue at 25 [no traffic] minutes). It’s an area that is slated for a ton of development in the coming decade, but has a somewhat higher crime rate (still well under national averages, lucky me) and affordable housing.

Guess what my mortgage is? $981 per month, including property taxes. Yep. And guess how much I rent my spare room for? $675 a month. So I am essentially living for $300 a month, compared to the $1,850 I was paying before. Not only that, but I actually have a third room that I can use as a tax-deductible office. And I can write off a reasonable portion of my electricity bill and other costs as part of my rental expenses, to keep my taxes even lower. I could live this way, eventually getting paid to live in my house (thank you rent raises!), for the rest of my life. If I want to, I never have to pay more than $300 a month to live. If I really wanted to, I could rent each room for $600, and MAKE $300 a month. But I don’t like roommates.

This is maybe my favorite chart ever… SO SCARY.


To be fair, I got really, really lucky with this place. I bought it right before the market in my city blew up- the same day we went pending, the sellers received a full-price CASH offer (thank goodness I had already signed everything and they were stuck with me!) I paid 5% under market value, and got the seller to cover my closing costs, which actually paid for most of my remodel (this is why it is so important to have an awesome real estate agent- like me!). The seller also agreed to pay one year of HOA dues, so in August I will have to start paying my own WSG. My final purchase cost on my three bedroom, two bath condo was $175,000- while I realize this is a lot in many markets, around here, it’s unheard of. The neighbor’s identical floor plan condo (last remodeled in the early 1990s and filthy) just went pending for $220,000+, just 9 months later. I have made $55,000 in 9 months, just by living. If I were to rent my condo out right now, it would be worth about $2,000 a month.

buying v renting

Like I previously mentioned, I pay about $300 a month to live in my remodeled, lovely, spacious condo, 25 minutes from two major downtown areas, 15 minutes from the ocean, 5 minutes from stores and a giant shopping mall… I am so happy! My apartment was great and I often miss being so close to the city, but I would happily pay the amount I was paying in Bellevue to have the same set up I have here, and again, it’s less than $300. And I don’t have a landlord! No one is ever going to raise rents on me, or evict me, or kick me out, or say I can’t paint the walls. Sure, I don’t have anyone to call when there is a maintenance problem, but I’m pretty handy, and I have yet to encounter any issues, to be honest.

But Briana, I don’t have any money for a down payment!

I totally get it. With rent prices so high, it’s really hard to save money. But, did you know that you can get an FHA loan (more flexible on credit and income restrictions) for 3.5% down!? And conventional loans are as low as 3% down? Did you also know that many states have programs for down payment assistance, so you may not have to put any money down?


A year outdated but still super useful. Note: interest rates are rising.

home buying myths

Briana, what if the market crashes again!

I feel you. It could. BUT, here’s why we won’t experience something like 2008 again:

*disclaimer: I am NOT an economist, lender, or financial analyst, and I have had no formal training in any of those topics. But I do a lot of research and am in the industry 24/7.

  1. Lending standards have drastically changed. Back in the day, just about anyone could get a loan. You could tell them you made 6 figures and they’d pretty much be like okay, cool. You’re approved up to a million. This is subprime lending. That is super not the case now.
  2. Many of the loans that were given to people prior to 2008 simply didn’t exist. I’m not kidding. The money wasn’t there. The Big Short is a pretty fun way to understand this.
  3. People are scared. No one wants to be caught in an underwater mortgage.
  4. And nor do banks! Appraisers are a lot more conservative now.
  5. The market is cyclical. This means that yes, we will see prices at the very least, level out. They may dip. This isn’t anything to be afraid of. This just means that we’re restarting the cycle.

Yeah, but you forgot how much you are going to pay in interest.

Aha, you’ve invalidated my entire article! Kidding, you didn’t. Yes, right now, I pay a lot in interest (the longer your loan goes on, the more you pay towards your principal [actual price] and the less you pay in interest [what the bank charges to loan you the money]). Yes, interest adds up. But rates are lower now than they have been in decades, or pretty much ever. If you plan to buy at any point in your life, you will have to pay interest. This is a good reason why it’s important to not over-leverage yourself when you buy- if you pay less for your mortgage than you are paying for rent, it’s much easier to make additional payments towards your principal and pay less in interest.

Well I would rather just keep renting and invest in the stock market instead.

Someone actually told this to me once. Are you planning on living in a box? Because if not, this is not a valid argument and please re-read this entire page. Kthxbye.

I like to travel/don’t want to be tied down/am only going to live here for a couple years.

Some or all of those may be very valid. It is definitely case by case. If I were going to move every two months, I would not buy a place. But if I were going to live in this area, and travel for six months out of the year, or travel one week a month, or whatever, I would put it on AirBnb or use it as a traditional rental. You can easily hire a property manager (for both long and short term rentals) and use the extra income to help fund your worldly lifestyle.

Overall, I like to plan for the worst case scenario. But if you let your fear keep you from doing something that could be really great for your future, you will likely regret it. What I recommend is to have a back-up plan- can you rent out a room if times get tough? (For this reason, I don’t recommend a one-bedroom condo, unless you are buying it for a rental or with cash, or it is significantly less than you are paying now). Are you paying a premium for new construction? (It’s important to realize that a building devalues over time. The land and space the building is sitting on goes up. The steepest decline is in the first couple decades- i.e. no one will pay the same price for an identical 2018 build and a 2004 build, but they may pay the same or very close price for identical 1960 and 1974 builds.)

There is a lot that goes into home buying. And this is a lot of information! I hope it is easy to understand and helpful for some of you. I am a huge nerd and this stuff is my forte. It just makes sense. If you have any questions, especially if you are in the Seattle area, feel free to contact me here and I will help you however I can. I love making the dream of home ownership a reality!



Blogging… what is that?!

Thanks for joining me! It seems that everyone and their grandmother has a blog (mine definitely does not, for the record!) so I thought I’d better jump on that train or risk seeming uncool (side note: I’m definitely uncool). My first blog post was actually back in January, when I posted some tips for DIY remodeling. However, my intention for this blog is to be less about remodeling a condo, and maybe more about how to get that condo in the first place. No one ever knows everything about lifing, but I do feel like I can consider myself well on my way.

The only thing predictable about life is it’s unpredictability. – Ratatouille, 2007


Allie, my retired 21 year old ex-racehorse, me, and Scout, my 3 year old Australian Cattle Dog/Kelpie/German Shepherd/Husky/baby angel mix

You’re probably thinking, ‘WHY SHOULD I LISTEN TO YOU?!’ And to that, I will answer that there is no reason you should, or shouldn’t. However, I will tell you about my accomplishments, and you can choose. I am a big believer in making educated and thought-out decisions! (#lesson1).

  1. I started college at 16, got my Associate’s Degree at 17, and I did not have to pay for it (and nor did my parents). I’ll do a post on that later.
  2. I moved out from my parent’s house and started paying my own bills shortly after my 18th birthday.
  3. At one point, I had sorely underestimated the cost of lifing, and been really, really poor.
  4. I got myself out of that poor-hole, and worked 39 hours a week, commuted 15, had a horse, and was in my junior year of college full-time. That SUCKED.
  5. I own two investment properties (one is my personal residence, but a) I rent out a room for 70% of my mortgage, and b) when I move on, it will net me about $500+ a month in profit, after all my expenses.
  6. I own and manage a HALFWAY house (yes, a halfway house! This is investment property #2).
  7. Although I would consider myself beginner-to-intermediate in terms of stock investing, I have done decently, despite being extremely conservative in my stock portfolio.
  8. My highest credit score (when I was working really hard to qualify for my house) was 799, and my average score is 750.
  9. I remodeled my condo mostly by myself, saving about $15,000 in labor and construction costs.
  10. I live in one of the hottest housing markets in the country (Seattle)
  11. I work full-time, from home! Yay pajamas!
  12. Oh yeah, and I’m 21.

Okay, DONE humble-bragging! Or is that straight-up bragging?! You decide… Anyway, I do think it’s really important to take stock of your accomplishments, and allow yourself to be proud of them. I’ve worked hard, yo! I deserve to brag! And you know what? You do too! Even if you live in a box on the side of the road, you have a shelter! (And amazingly, an internet connection). Or maybe you just got your first apartment. Congrats, that’s super exciting! Or you’re going to college in your 40s, or you mastered the art of cake decorating, or you just got a hamster/house plant, or you learned how to do laundry, or you just got a credit card, or WHATEVER. You have to be happy with your accomplishments, no matter how small or insignificant they are. Someone will always, always be doing better than you. But someone will also always be doing worse. We all come from wildly different backgrounds and life experiences, and unfortunately, many of us can’t hit the ground running. Public education doesn’t exactly prepare you for being an adult, that’s for dang sure.

Anyway, the point is, read my blog or don’t. It’s all good, I won’t be offended (mostly because I will actually be shocked if I end up with even one reader 😉 ). I will strive to provide you with useful information, that isn’t “save each and every penny” or “never order a Starbucks again”. We could always be doing better financially, but we could also always be doing worse. Why not work at it together? There is more than enough of the pie to go around! 🙂