Properties that cash flow in western WA in 2023

Seattle, Washington
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Properties that cash flow in western WA in 2023

Daniel Ulie
Member since 2021 · 11 posts · 6 votes

Hi all,

Relatively new investor here, i've completed a few single family flips. My intention now is to acquire properties to rent and looking for advice on current strategies that cash flow best in western WA now and into 2023 as we continue to see high mortgage rates.

What are you favorite strategies in both single family and multi family? What makes sense in current market conditions?

Any investors, realtors, lenders etc who would be interested in chatting for a moment about their experiences in this sector?

Thanks!

-Dan

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Michael HaasBusiness Member
Real Estate Agent · Redmond, 🌧️ Seattle Investor-Agent | 🤑 Helped 400+ Clients Invest in Real Estate | 🏘️ Owns 23 WA Rentals & Airbnbs | 🏗️ Built 5 DADU's | 📈 You Can Do It Too · Member since 2016 · 724 posts · 3k+ votes
3y

@Daniel Ulie

In our region I'd say the most powerful strategies to get started with are HouseHacking, ADU / DADU Development (or BRRRR), STR, Flipping, Townhome development, in about that order. Happy to chat more - we've got a dozen or so properties up here in our portfolio and work with investors, so have seen a lot of what works (and what doesn't haha). Shoot me a message!

[email protected]408-439-7873
HouseHack Seattle | Michael Haas & Team572 Reviews
WebsiteView Page
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  • Will FraserPro Member
    Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
    3y

    Hi Daniel!

    For context I am a realtor, property management company owner, and investor.

    My favorite strategy for buying small multifamily properties (2-4 units) is to house-hack.

    My favorite way to pick up single family homes is BRRRR with an emphasis on buying properties that have some form of mis-marketing happening or some other thing that gives me an edge.

    I also started out in a cheap market because that's where I lived.  It worked out well, and now I've discovered what I think may be the best overall strategy out there (for me at least):  marry cash-flowing properties in cheap markets with excellent properties in better markets that tend to be cash-flow negative.  Your cheap workhorses end up buying you nice properties.  The net affect is pretty awe-inspiring looking over a 10-year horizon, and dumbfounding when looking further out than that.

    2Reply
  • Adrian Chu
    Real Estate Broker · Seattle, WA · Member since 2014 · 1k+ posts · 427 votes
    3y

    If you are willing to put in the extra work, co-living (room rentals) and short term rentals provide more cash flow.

    0Reply
  • Joseph Crunkilton
    Rental Property Investor · Oregon City, OR · Member since 2020 · 324 posts · 780 votes
    3y

    Hi Daniel, 

    I grew up in Western WA and currently live in the Portland area. Cash flow is tricky in our markets. Most investors have to use creative strategies to make it work. Renting by the room, adding ADU's, etc. I searched for deals locally for a while before I discovered how accessible out of state investing is.

    Now, I have multiple cash flowing rentals in out of state markets. The best part? I've paid less out of pocket than I would've for one house here. And they all appreciate well. 

    Have you ever considered out of state investing? I can answer any questions you have. It's much more accessible than people think.

    1Reply
  • Sara Levy-Lambert
    USA · Member since 2022 · 879 posts · 109 votes
    3y
    1. Buy and hold: This involves purchasing a property and holding onto it for the long term, with the intention of generating rental income and potentially seeing appreciation over time. This can be a good strategy if you're able to find a property that generates positive cash flow and is in a desirable location.
    2. Rent-to-own: This involves purchasing a property and allowing the tenant to rent with the option to purchase the property at a later date. This can be a good strategy if you're able to find a tenant who is interested in eventually owning the property but isn't ready to purchase it yet.
    3. House hacking: This involves purchasing a multi-family property and living in one unit while renting out the others. This can be a good way to offset the cost of homeownership and potentially generate positive cash flow.

    In terms of which type of property to invest in (single family vs. multi-family), it really depends on your goals and the specific market conditions. Single family homes may be more suitable if you're looking for a more hands-off investment, while multi-family properties may offer the potential for higher rental income and more cash flow.

    It's also worth considering the current market conditions and economic trends when choosing a rental strategy. For example, if mortgage rates are expected to remain high, it may be more difficult for potential tenants to qualify for a mortgage and they may be more likely to rent. On the other hand, if mortgage rates are expected to decrease, it may be a good time to focus on rent-to-own or other strategies that allow tenants to eventually become homeowners.

    I hope this information is helpful as you consider your options for rental properties in western Washington. Best of luck with your investments!

    1Reply
  • Nathan Harden
    Real Estate Agent · Puyallup, WA · Member since 2022 · 551 posts · 379 votes
    3y

    Daniel,

    I am a local realtor and investor from Western WA and would love to help anyway that I can! Just getting started is a perfect time to do a House Hack. While rates are high, so are rents in WA. Buy a duplex, triplex or quad, live in one of the units and rent the others out. Then in a couple years, move out and rent that unit to another tenant. As for SF investments in this area, it is going to be hard to cash flow. I know of investors who are buying SF homes with the possibility of adding an ADU in the future. Hope this is useful!

    0Reply
  • Joseph Crunkilton
    Rental Property Investor · Oregon City, OR · Member since 2020 · 324 posts · 780 votes
    3y

    Daniel, 

    Probably going to have to get a bit creative or find off market deals. Our market is tough to buy standard rentals and cash flow. I'm from western WA but currently live outside of Portland. REI became way more accessible and fun for me when I started investing out of state.

    I have multiple rentals for what I could've bought one place for. We're turning our primary into a rental in the next year or two to take advantage of the sweet appreciation. But I'll continue to primarily invest remotely. 

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    3y

    You should understand the cashflow, appreciation and tenant profiles differences between Class A, B & C properties.

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
    0Reply
  • Marcela Hoag
    Real Estate Broker · Seattle, WA · Member since 2020 · 62 posts · 33 votes
    3y

    Hi Daniel,

    My company has focused mostly on properties surrounding Seattle to the North and South. 

    Thats where a lot of the flow of people are going, and if you couple that with off market deals & aggressive negotiation, you can create amazing rentals with built-in equity and multiple exit strategies.

    Our buy & holds are in Tacoma & Des Moines. 

    Flips in Tacoma & Everett. 




    1Reply
  • Levi DobsonPro Member
    Member since 2019 · 69 posts · 36 votes
    3y

    @Daniel Ulie My favorite strategy in Seattle is the house hack. I was priced out of multi family where I wanted to live so I ended up purchasing a single family. I rent room by room and make more than I would if I rented it out as a typical rental. Renting by room is probably the most affordable option in our market when it comes to renting. My rooms are always occupied. This is a not everyone's choice of lifestyle, but it's a great way to cash flow in our market for the newer investor. 

    0Reply
  • Michael HaasBusiness Member
    Real Estate Agent · Redmond, 🌧️ Seattle Investor-Agent | 🤑 Helped 400+ Clients Invest in Real Estate | 🏘️ Owns 23 WA Rentals & Airbnbs | 🏗️ Built 5 DADU's | 📈 You Can Do It Too · Member since 2016 · 724 posts · 3k+ votes
    3y

    @Daniel Ulie

    In our region I'd say the most powerful strategies to get started with are HouseHacking, ADU / DADU Development (or BRRRR), STR, Flipping, Townhome development, in about that order. Happy to chat more - we've got a dozen or so properties up here in our portfolio and work with investors, so have seen a lot of what works (and what doesn't haha). Shoot me a message!

    [email protected]408-439-7873
    HouseHack Seattle | Michael Haas & Team572 Reviews
    WebsiteView Page
    5Reply
  • Jin Zhang
    Rental Property Investor · Member since 2019 · 137 posts · 42 votes
    3y
    Quote from @Joseph Crunkilton:

    Daniel, 

    Probably going to have to get a bit creative or find off market deals. Our market is tough to buy standard rentals and cash flow. I'm from western WA but currently live outside of Portland. REI became way more accessible and fun for me when I started investing out of state.

    I have multiple rentals for what I could've bought one place for. We're turning our primary into a rental in the next year or two to take advantage of the sweet appreciation. But I'll continue to primarily invest remotely. 


     Hi Daniel, I am curious what markets you are buying properties in? 

    0Reply
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