Looking for my first vacation rental in Washington

Seattle, Washington
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Looking for my first vacation rental in Washington

David Chang
Seattle, WA · Member since 2023 · 3 posts · 2 votes

Hey BP community!

I am thrilled to join this incredible forum of real estate enthusiasts and investors. My name is David, and my partner and I are on a journey to find our very first vacation rental property in Washington state.

We currently reside in North Seattle, and own a SFH (30 year mortgage @ 2.75%). We are looking for our vacation home that we can personally use a few times a year, and to rent out as a STR for the remaining times we're not there. Our investment horizon is longterm, and somewhat conservative as we're learning the ropes. Given today's interest rates, we're looking at paying > 50% down to minimize interest costs. Some areas that have peaked our interest include:

Packwood - Mount Rainier / Lax Regulations / Year Round, High Demand / 3 HR commute

Ashford - Mount Rainier / Year Round, High Demand / 2.5 HR commute

Goldbar - Stevens Pass / Hikes / Demand ? / 1.5 HR commute

Mason County (Brinnon/Shelton) -  Waterfront/Beach Cabins < 500k / Oyster Fishing / Seasonal Demand / 1.5 HR commute

Whidbey Island - ? / 1 HR commute

Port Angeles - Olympic National Forest / Year Round, High Demand / 3 HR commute

If you've ventured into the vacation rental market in Washington and have valuable insights to any of these areas or any general tips, I would be incredibly grateful for your input.

Looking forward to connecting with all of you!

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Sherief Elbassuoni
Realtor · Bellevue, WA · Member since 2019 · 882 posts · 1k+ votes
3y

@David Chang, I personally own STR and bought STRs for my clients.

You listed good options in here. We will need to run the numbers, check average occupancy rates, and for sure, double check the STR regulations since theyh keep changing

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  • Kelvin Urena
    Rental Property Investor · Austin, TX · Member since 2018 · 37 posts · 11 votes
    3y

    Washington is a fantastic market for STRs as far as I am concerned. My suggestion - regarding Short Term Rentals in general - is to do your Due Diligence on the laws regarding Short Rentals, similar to how you'd look at Tenant/Landlord Laws for Long Term Rental Units. The last thing you want to do is invest in a property with tens (or even hundreds) of thousands of dollars down, just to realize that the strategy you wanted to utilize isn't practical/possible.

    If you know the Laws and Regulations in the areas you are considering, then my next suggestion would be to grasp a full understanding of what you can do to automate the business as much as possible, while still retaining a sizable profit. This will allow you not only to have a piece of mind, but also minimize how much you have to work on your business day in and day out. 

    As far as acquisitions are concerned, there are a lot more creative ways you can go about dealing with that. I utilized such creative strategies to get my first STR units in Austin, TX. Let me know if you wanted more insight into what has worked for me in the past.

    1Reply
  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    3y

    @David Chang...thanks ...the closer to the city you can  be - the likely more renters you will have and the more  times  you will decide to use it for yourselves ....so I  would  recommend  Hood Canal 

    0Reply
  • Grant SchroederPro Member
    Lender · OR ID AZ CA WA CO NV TN MT · Member since 2018 · 598 posts · 312 votes
    3y

    Hey @David Chang! Thank you for posting about your search for an STR! I sent you a connection request and would be glad to connect with you on the phone next week if you have availability! My wife and I are investors in LTRs and STRs here in the PNW, and I am also a loan officer at Academy Mortgage and specialize working with investors and house hackers.

    [email protected]541-231-1256
    0Reply
  • Lawton Coursey
    Property Manager · Snohomish Pierce, King Counties · Member since 2022 · 2 posts · 0 votes
    3y

    Hi David, 

    I have had allot of luck with STR in the areas surrounding Seattle (Specifically Skagit County, Randell, and Skykomish). I have personally found that I can avoid seasonal vacancy with properties along the HW 2 Corridor due to year round traffic and activities. In the winter we are close to 100% occupancy due to Stevens Pass which I have not found in my Randle/Skagit investments. I will send you a connection request if you want to DM and discuss further!

    0Reply
  • Julien J.
    Investor · CO · Member since 2016 · 757 posts · 1k+ votes
    3y

    Welcome @David Chang@David Chang

    @David ChangSeattle is indeed a great market for STRs, achieving cash flow does require creativity or a significant downpayment. The long term appreciation has been wonderful, an equity rather then cash flow market.

    I echo the recommendation of getting to know local ordinances for STRs and keeping an eye on proposed legislation. 

    0Reply
  • Sherief Elbassuoni
    Realtor · Bellevue, WA · Member since 2019 · 882 posts · 1k+ votes
    3y

    @David Chang, I personally own STR and bought STRs for my clients.

    You listed good options in here. We will need to run the numbers, check average occupancy rates, and for sure, double check the STR regulations since theyh keep changing

    2Reply
  • Account Closed
    Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
    3y
    Quote from @David Chang:

    Hey BP community!

    I am thrilled to join this incredible forum of real estate enthusiasts and investors. My name is David, and my partner and I are on a journey to find our very first vacation rental property in Washington state.

    We currently reside in North Seattle, and own a SFH (30 year mortgage @ 2.75%). We are looking for our vacation home that we can personally use a few times a year, and to rent out as a STR for the remaining times we're not there. Our investment horizon is longterm, and somewhat conservative as we're learning the ropes. Given today's interest rates, we're looking at paying > 50% down to minimize interest costs. Some areas that have peaked our interest include:

    Packwood - Mount Rainier / Lax Regulations / Year Round, High Demand / 3 HR commute

    Ashford - Mount Rainier / Year Round, High Demand / 2.5 HR commute

    Goldbar     - Stevens Pass / Hikes / Demand ? / 1.5 HR commute

    Mason County (Brinnon/Shelton) -  Waterfront/Beach Cabins < 500k / Oyster Fishing / Seasonal Demand / 1.5 HR commute

    Whidbey Island - ? / 1 HR commute

    Port Angeles - Olympic National Forest / Year Round, High Demand / 3 HR commute

    If you've ventured into the vacation rental market in Washington and have valuable insights to any of these areas or any general tips, I would be incredibly grateful for your input.

    Looking forward to connecting with all of you!

    You picked all of the rainy places. Im not familiar enough, do people want to stay where it rains constantly?
    0Reply
  • Julie MarquezPro Member
    Investor · Skagit County, WA · Member since 2016 · 1k+ posts · 807 votes
    3y

    @David Chang This is a fun thread! Where do you want to to vacation too? Do you plan on managing it yourself or hiring that out? I'm also thinking of remoteness and the amount of work you might have to do with it, being close to a home depot, etc, and yours and the cleaners convenience. I'd vote for Camano Island (drivable island) or Skagit County, but that's just because I prefer the beaches and know this area. What area do you personally want to go to the most?

    1Reply
  • Abigail AltPro Member
    Investor · Seattle, WA · Member since 2017 · 4 posts · 1 vote
    3y

    Those are certainly areas where you can find a vacation rental home. It might be worth looking for places with STR ordinances already in place. That way you don't get a nasty surprise when a new ordinance comes in to effect. Seattle lets you have one stand alone STR and you can have a second if it is owner occupied. Location for a vacation home depends on where you like to vacation and what you like to do if you are planning to use it from time to time. If you want to minimize the wear and tear on the property, then 60-55% occupancy might be advisable. Other's are correct that if you are not too far out from the Seattle area you can do quite well with regard to vacancy. Due Diligence is definitely advisable. Will you be managing it or do you need a property manager? Always happy to chat. Feel free to reach out.

    0Reply
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