Cash Flowing Duplex's in the Seattle Area Market

Starting Out
3yFollow

Cash Flowing Duplex's in the Seattle Area Market

Jim Doyle
Member since 2021 · 37 posts · 19 votes

Hello, I'm looking to purchase my first home in the Seattle area market and understand with the expensive market that I'm in it would be hard to cash flow a property after I move out after 1 year. The intent in living there would be to lower the amount of money that I'm currently paying in rent to myself and be able to take advantage of the FHA loan for a primary residence within the duplex. My question is are there any markets that would be considered slightly undervalued or would provide me with the best opportunity to cashflow after 1 or 2 years. I'd consider most markets, but wouldn't move to Tacoma as my girlfriend is not a fan. We're both outdoorsy and actually like Bellingham a lot, so wonder if anyone has any experience up there as well?

0Reply
31 views

Most Popular Reply

Corine Rosado
Investor · Seattle, WA · Member since 2015 · 14 posts · 9 votes
3y

Hey Jim,  Check out Snohomish County, north of Seattle.  I've done very well in that area with duplexes and 4 plexes.  Nice properties will get the rents you need.  :-)

2Reply
See this reply in the discussion

10 Replies

Jump to latestLatest
  • Brandon VukelichBusiness Member
    Real Estate Broker · Tacoma, WA: 🏢 27 LTRs 🏡 3 STRs · Member since 2018 · 546 posts · 456 votes
    3y

    Hey @Jim Doyle, house hacking a SF with ADU/DADU or small MF is the way to go. If you go FHA, yes, it will be tough to get properties in the Puget Sound region to cash flow after a year or two with only 3.5% down. Properties in our area need a good chunk of down payment (equity) to reach +CF. Otherwise, you would need to find something that is really underpriced (with maybe great seller financed terms) with room for rehab and catching up the units to market rents. If you're new to investing locally, I urge caution for Seattle. Landlord-tenant laws are nuts in our area, particularly Seattle and now Federal Way with many other cities following their lead. Western WA is still a great place to invest. Historically strong jobs, good appreciation, rent growth, etc. If you're trying to stay near to Seattle core, you may want to consider the better areas of Renton or Kent. Best wishes on your journey!

    Broker at Multifamily Properties519 Reviews
    WebsiteView Page
    2Reply
  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    3y

    @Jim Doyle- thanks  ...you will need to  remain closer to  towns and  cities to locate MF  options ....Bellingham  likely  has  some   options  ....you might also  consider the OLY penin   )  bremerton /  Port Angeles /   Port orchard   etc......

    1Reply
  • Jim Doyle
    OP
    Member since 2021 · 37 posts · 19 votes
    3y
    Quote from @Brandon Vukelich:

    Hey @Jim Doyle, house hacking a SF with ADU/DADU or small MF is the way to go. If you go FHA, yes, it will be tough to get properties in the Puget Sound region to cash flow after a year or two with only 3.5% down. Properties in our area need a good chunk of down payment (equity) to reach +CF. Otherwise, you would need to find something that is really underpriced (with maybe great seller financed terms) with room for rehab and catching up the units to market rents. If you're new to investing locally, I urge caution for Seattle. Landlord-tenant laws are nuts in our area, particularly Seattle and now Federal Way with many other cities following their lead. Western WA is still a great place to invest. Historically strong jobs, good appreciation, rent growth, etc. If you're trying to stay near to Seattle core, you may want to consider the better areas of Renton or Kent. Best wishes on your journey!

     Thanks @Brandon Vukelich, I'm planning on putting 10% down on any property that I purchase in the Seattle Area. I have heard from other landlords that the Seattle laws are not landlord friendly, so that is some good insight. I haven't looked for homes with ADU or DADU's yet; but I remember looking to purchase ADU's or DADU's when I was initially looking for a SF or Townhome in Seattle, and they were still well north of $500k for less thank 1000 SF; in general it seems very cost prohibitive for newbies to invest in the Puget Sound Region, which is a bummer. I think I missed the boat in the last couple of years with the astronomical appreciation that our region has experienced, I will be curious to see where the dust settles in 2023 with home prices; I assume they will depreciate, but not by much.

    0Reply
  • Jim Doyle
    OP
    Member since 2021 · 37 posts · 19 votes
    3y
    Quote from @Dave Skow:

    @Jim Doyle- thanks  ...you will need to  remain closer to  towns and  cities to locate MF  options ....Bellingham  likely  has  some   options  ....you might also  consider the OLY penin   )  bremerton /  Port Angeles /   Port orchard   etc......

     Thanks @Dave Skow - Outside of Bellingham; it would be tough for me to actually want to live in any of those locations; I'm trying to balance finding a market that makes financial sense, with a place that I'd want to live where I'd be able to have a little bit of a social life; all my friends experiences are in the Seattle area.

    1Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    A house hack i only as good as your deal, if your market is overpriced and rents don't reflect it defeats the purpose. Texas has reasonably priced homes with rents that match  

    0Reply
  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    3y

    Understood ….  Bellingham is a hike from seattle as well …..2 hours plus 

    2Reply
  • Corine Rosado
    Investor · Seattle, WA · Member since 2015 · 14 posts · 9 votes
    3y

    Hey Jim,  Check out Snohomish County, north of Seattle.  I've done very well in that area with duplexes and 4 plexes.  Nice properties will get the rents you need.  :-)

    2Reply
  • Jennifer Harder
    Real Estate Agent · Tacoma, WA · Member since 2021 · 8 posts · 11 votes
    3y

    Bremerton, WA is also a good spot is your looking for a duplex. We have the Puget Sound Naval Shipyard here which employs thousands of people and people are always needing rentals. I specialize in this market and I'm happy to help!   

    0Reply
  • Nathan Harden
    Real Estate Agent · Puyallup, WA · Member since 2022 · 551 posts · 379 votes
    3y

    Puyallup is a strong market. Close to the freeways, hospitals and public transportation. It's a lot more bang for your buck, also helps that it's Pierce County and not King.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free