Buy a Houseboat

Root Vegetable Houseboats

Biz description:
I purchased & renovated/built these houseboats that I now rent out. All 4 boats are located in the same marina for management convenience.  I also am putting up for sale 4 other houseboats (w/FOWR plaque) I rent out that are good candidates for replacement with a new houseboat.

Offering price and terms:
  • Why am I selling? 
    • I am selling because I am ready for something else.  This has been a wonderful ride and I have benefited greatly in many ways and I am ready for the next round with more of the same if I am so fortunate.  To any who are contemplating purchasing a houseboat, whether one of mine or someone else's, I do highly suggest.  It is a sweet life on the water.
  • Floating on Water Residences (FOWR)
    • In 2014 a law passed by the state legislation that grandfathered all houseboats and floating homes in Washington, and that includes Seattle, and at the same time put a cap on any new houseboats or floating homes.  So no new houseboats or floating homes are permitted.  Consequently, they have turned into a really great investment opportunity in Seattle and elsewhere.  The city established, at that time, a few designations and subsequent policies to manage these residences, primarily on Lake Union.  FOWR's are now the official designation for all houseboats (house barges are the same for all intents and purposes) and floating homes. 
    • You can read more information about FOWR's here: floating-on-water-residences.p
  • Expansion and Replacement
    • The city of Seattle permits a 1 time structural expansion of the house of up to 120 sqft over the life of the FOWR without any substantial restrictions.  You cannot expand the hull footprint - it can be the the same size or smaller. If you would like to expand the house beyond 120 sqft (adding a 2nd bedroom, etc) then you need to design in catchment for all grey water (sink, shower water) or be hooked up to city sewer.  Other restrictions is you cannot go higher then 18 feet, starting at 3 feet above the water line.  Last, you need to demonstrate that the structure will be safe and essentially will not tip over by being too tall and too skinny.  
    • You can references the Shoreline Master Program for regulations on expansion or replacement of existing FOWR's here: www.seattle.gov/sdci/codes/codes-we-enforce-(a-z)/shoreline-master-program
  • Renting
    • Historically and at present, I rent out many of my houseboats as short-term rentals and will continue to do so through October 2019 when the city's new Airbnb regulations go into effect and will limit short term rental over the water.  Long term rental will still be permitted. 
  • Contents of sale
    • All furnishings and items (minus a few personal items)
  • Terms & Financing
  • Prices (all good and reasonable offers will be considered for individual boats and the lot)
    • Rutabaga - $385K
    • Turnip - $239K
    • Carrot - $169K
    • Ginger - $399K
  • Ownership
    • They are documented as personal property. 
  • Tax
    • The seller pays excise tax upon sale.  Buyer pays Annual Personal Property tax, which is approximately 1% of replacement cost. 
    • More information: https://www.seattle-houseboat.com/fowr/ 
  • Example of Monthly Expense
    • Rutabaga
                   Moorage: $950
                   Insurance: $125
                   Propane: $10
                   Blackwater pump out: $80
                   Total Expense: $1,205
  • Moorage 
    • Moorage is transferrable upon marina owners approval. 
    • Fees are to be negotiated with marina owner. 
      • Rutabaga: $950
      • Turnip: $1050
      • Carrot: $950
      • Ginger:$1400
    • Moorage includes electrical, water, and the agreement to rent short and long term.

Strengths and Competitive Position:
  • Each houseboat has a Floating on Water Residence (FOWR) permit to be in Seattle.  In 2014, a law was passed in WA that put a cap on no new houseboats allowed in WA, and more specifically in this case, in Seattle.  The consequence is a stable market for houseboats in Seattle that far exceeds market values seen elsewhere.
  • Great equity potential.  Houseboats are listed on the MLS and appreciate in value just as other residential real estate. 
  • FOWR plaques can be used for replacing an existing houseboat with a new one.
    • I have 4 other houseboats that I am open to selling for replacement, in addition to the 5 outlined.  Feel free to inquire. 
      • (2) 41'x12.5' houseboats - $150K each
      • (1) 47'x14.1.25' - $165K
      • (1) 31x12.5' houseboat - $120K
    • The city of Seattle has a few basic requirements for replacement and expansion that you can review in the Shoreline Code.  1) The structure square footage of the FOWR cannot be expanded beyond 120 sq ft over the life of the vessel; if you would like to expand more than 120 sq ft then all grey water must be contained and disposed of. 2) The hull dimensions cannot be expanded beyond what it was permitted as.  3) Must be no higher than 18 feet (starting at 3 feet above the water line, e.g. the deck level), plus a 3 foot addition for roof railings.
    • For example, Ginger has 55'x15' hull with lots of room to expand existing sq footage from present 565 sq ft to potentially 1350 sq ft. ~$1M market value all said and done.

Closing remarks:
  • Will pay standard brokers commission.
  • All good and reasonable offers will be considered.
  • Contact to schedule showing.
  • Serious inquiries only.

Thanks for looking,

Mike
michael.schmautz@gmail.com
509.863.3146