Property developer Pete Sikov bought it eight years ago for $30,000 (roughly £20,000) and planned to turn it into a music centre. That plan failed and he then moved the house to a trailer park close in nearby Renton where Hendrix is buried.
But despite negotiations, Renton officials demanded the house be demolished as it was an "eyesore."
Sikov managed to save parts of the house including kitchen cabinets, a bath and the back door.
"Can you imagine a guitar made out of wood from Jimi's house? Who wouldn't want that?" he said.