Buying in Seattle/lack of cashflow

Seattle, Washington
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Buying in Seattle/lack of cashflow

James Jordan
Member since 2025 · 15 posts · 23 votes

I am looking to buy my first house hack in the greater seattle area, more south of seattle in puyallup, auburn, kent area and I am finding it incredibly hard to make any deals work in regards to cash flow. I have yet to find any property that will cashflow positive even once I move out of the house hack. I have had agents and lenders tell me "thats a pretty great deal!" When I would be getting -1400 dollars in cashflow.

In every real estate book, they talk about cash flow being the only metric you can really reliably bet on. So it is incredibly frustrating seeing that it is seemingly impossible to get any cash flow or even break even on a house after I move out and rent out the room I was living in. How am I supposed to continue to trajectory of buying a house hack every year or two if I am continuing to rack up more and more payments I have to make rather than assets that put money in my pocket? Am I just supposed to buy the house and hope that I can eventually raise rents and refinance so that I can break even and maybe make a little money on monthly cash flow? Help me figure out how I am supposed to make a deal in this expensive market.

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Henry Lazerow
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
9mo

In quality markets the cazhflow typically comes strong in year 3-5+ after rents have grown and mortgage stayed the same. You can cashflow year 1 but need decent downpayment and probably 3 or 4 unit buildings. Even cheap areas do not really cashflow in 2026 when run numbers accurately for turnover costs, etc. Those cheap midwest Ohio or Indiana are selling 400% higher then 10 years ago with the same junk tenants that cause costly turnovers. 

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  • Filippo SeraciniPro Member
    Investor · Indianapolis, IN · Member since 2024 · 22 posts · 14 votes
    9mo

    Seattle is really an appreciation market unfortunately. The only move to help is adding DADUs 

    0Reply
  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    9mo
    Quote from @James Jordan:

    I am looking to buy my first house hack in the greater seattle area, more south of seattle in puyallup, auburn, kent area and I am finding it incredibly hard to make any deals work in regards to cash flow. I have yet to find any property that will cashflow positive even once I move out of the house hack. I have had agents and lenders tell me "thats a pretty great deal!" When I would be getting -1400 dollars in cashflow.

    In every real estate book, they talk about cash flow being the only metric you can really reliably bet on. So it is incredibly frustrating seeing that it is seemingly impossible to get any cash flow or even break even on a house after I move out and rent out the room I was living in. How am I supposed to continue to trajectory of buying a house hack every year or two if I am continuing to rack up more and more payments I have to make rather than assets that put money in my pocket? Am I just supposed to buy the house and hope that I can eventually raise rents and refinance so that I can break even and maybe make a little money on monthly cash flow? Help me figure out how I am supposed to make a deal in this expensive market.

    I'm from Seattle and I've sold all of my properties there, because of a couple of things. It's hard to make it cashflow, it's renter friendly,  property taxes are high, they tax you when you sell, the politics make profiting from real estate very difficult and why keep banging your head to try to make things work? If you agree with the politics, it's a "great place", (he says sarcastically), invest there, don't bother us.

    But if you are actually looking to make an honest profit, where you won't be harassed, you will need to invest in AZ or TX where I invest, ID or OH or some place that appreciates the effort and risks to the investor. Proximity is something I push for, but it needs to make sense.

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  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    9mo

    In quality markets the cazhflow typically comes strong in year 3-5+ after rents have grown and mortgage stayed the same. You can cashflow year 1 but need decent downpayment and probably 3 or 4 unit buildings. Even cheap areas do not really cashflow in 2026 when run numbers accurately for turnover costs, etc. Those cheap midwest Ohio or Indiana are selling 400% higher then 10 years ago with the same junk tenants that cause costly turnovers. 

    1Reply
  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    9mo
    Quote from @James Jordan:

    I am looking to buy my first house hack in the greater seattle area, more south of seattle in puyallup, auburn, kent area and I am finding it incredibly hard to make any deals work in regards to cash flow. I have yet to find any property that will cashflow positive even once I move out of the house hack. I have had agents and lenders tell me "thats a pretty great deal!" When I would be getting -1400 dollars in cashflow.

    In every real estate book, they talk about cash flow being the only metric you can really reliably bet on. So it is incredibly frustrating seeing that it is seemingly impossible to get any cash flow or even break even on a house after I move out and rent out the room I was living in. How am I supposed to continue to trajectory of buying a house hack every year or two if I am continuing to rack up more and more payments I have to make rather than assets that put money in my pocket? Am I just supposed to buy the house and hope that I can eventually raise rents and refinance so that I can break even and maybe make a little money on monthly cash flow? Help me figure out how I am supposed to make a deal in this expensive market.


     James - it is going to be harder for you to cashflow on a 3.5 to 5% down house-hack especially in Seattle. The point of house-hacking is to use leverage to own/operate a 2-4 unit multi-family that is hard to buy with standard 25% down because newer homeowner/investors don't have the capital. 

    In other markets, it is possible to stabilize/make self-sufficient multi-family but it will be much harder in markets like yours. However, the appreciation is there. 


    I would buy an off-market 2-4 unit that 15 to 20% under market value regardless of rent rolls/stabilization. Live in it for a year and then potentially re-sell within 1-2 years and cash out the profit with appreciation. 

    [email protected]614-802-5698
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  • Tre DeBragaPro Member
    Real Estate Agent · Worcester, MA · Member since 2022 · 107 posts · 48 votes
    9mo

    whats up James, 
    I hear you and the struggles. Cash flow is very tough to come across nowadays especially in a tough market like yours. The point of house hacking is not always cash flow though. Would you be paying much less living in the house hack then you would be on rent?
    I would suggest looking at value add properties.. Maybe a 203k loan that has under market rents. Once stabilized your numbers would look much better. You really gotta get out to real estate meet ups, be in FB groups, etc to find these savy deals. They are not always on the market.

    0Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    9mo

    Historically Seattle RE has been a great investment. However, RE is more challenging than in recent times.

    However it is my view there are only a few paths in Seattle RE at this moment 1) patience. I am thinking years of patience. Seattle has historically out performed most other markets. Over the long term I believe this will continue. Other markets have the same challenges contrary to the posts from OOS agents. I am not that patient. 2) value adds. For the most part these require work and have risk but seattle can produce great returns via value adds. 3) alternate rent models (rent by room, STR, MTR). These require work. Pay a pm and the profit is significantly reduced 4) alternative below market financing such as assumable, owner finance, wraps, sub to, etc 5) path of progress.

    You can achieve cash flow by minimizing leverage. However, historically the Seattle return is via appreciation. Leverage magnifies the return from appreciation. Lower leverage equates to lower return. Low leverage is a conservative approach that will be reflected in the returns achieved.

    If you purchase a rent ready property without a value add using market rate financing at OO high LTV, you likely need to be patient to achieve a return that justifies the effort and risk.

    Good luck

    0Reply
  • Xan RobertiBusiness Member
    Real Estate Agent · Seattle, WA · Member since 2025 · 5 posts · 1 vote
    9mo

    Hi James, I'm in Seattle, and have a cash flowing property here, so it IS possible. But it depends on so many factors. While the market out here definitely runs more towards appreciation, it's a win-win when you get both.  I'm happy to chat if you'd like.  Are you on the south end? 

    1Reply
  • Brandon VukelichBusiness Member
    Real Estate Broker · Tacoma, WA: 🏢 27 LTRs 🏡 3 STRs · Member since 2018 · 549 posts · 458 votes
    9mo

    @James Jordan welcome to the crux of the Puget Sound market. Historically we have been a strong appreciating market, cash flow takes patience. Investors in the greater Seattle-Tacoma market play the long game. If you want decent immediate cash flow, look to the midwest. If you're attempting to house hack in WA, are you using less than 20% down in your analysis? Unfortunately most deals, even in Puyallup, Auburn, Kent, etc. take 30%+ to cash flow because nearly all are owned by small mom & pop landlords that have little to no debt and have kept their rents low to reduce turnover. Not to burst your bubble but unless you have significant cash for acquisitions, you're going to struggle to acquire a property every year or two in Western WA and expect them to cashflow decently. It's just the reality of our market. I'm hoping things improve for investors but prices are not dropping quick enough to offset the new rent control regs that new owners will need to deal with. Best wishes on your journey!

    Broker at Multifamily Properties519 Reviews
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  • Michael HaasBusiness Member
    Real Estate Agent · Sammamish, 🌧️ 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 · 725 posts · 3k+ votes
    8mo

    As others have mentioned, appreciation is a key ROI driver in Seattle, although I don't expect to see much of any appreciation over the next 2-3 years. In our experience break even deals with a low downpayment are possible, although you shouldn't expect to cashflow with low money down in this market. If you can find a break even deal Househacking has a lot of benefits - lower loan costs and lower down payments primarily.

    Others have mentioned Out of State investments - you loose a lot of leverage when going out of state though. For example, lets say you have $40,000 to put down as a down payment & you negotiate seller paid closing costs; you can buy a $800,000 house in Seattle (5% down) or a $160,000 house in the Midwest (25% down, pretty much a requirement when buying non-owner occupied properties). Your loan for the investment property in the Midwest will also be about 0.4% higher interest rate, as there is a rate discount associated with owner-occupied properties.

    Real Estate will likely be flat for the next 2-3 years, but when things start appreciating again would you rather own the $800,000 rental property with a lower interest rate or the $160,000 property with a higher interest rate if they cost you the same cash to purchase? To get a 100% return on your $40k downpayment the $800k Seattle are property only has to appreciate 5% - and our long term average rate of appreciation here is 5.5% / year. To get the same return on equity in the midwest the property would have to appreciate 25% - quite a bit more, especially given annual long term appreciation rates in many midwest markets are lower at 2% - 3.5%.

    Happy to chat HouseHacking strategy with you if you're interested- we're on HouseHack #5 and although it wasn't easy have managed to buy a property or two every year for the last decade as you mentioned trying to do.

    [email protected]408-439-7873
    HouseHack Seattle | Michael Haas & Team572 Reviews
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  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 957 votes
    8mo

    @James Jordan

    Hey James, I hear you,  that’s exactly the challenge in high-cost markets like Seattle. Cash flow can be almost impossible unless you stretch way beyond comfort. That’s why a lot of new investors find the Midwest appealing, lower purchase prices, strong rental demand, and realistic cash-flow-positive house hacks or small multifamily opportunities without needing to gamble on huge appreciation. Even conservative numbers often produce positive monthly cash flow from day one. For someone trying to scale and avoid negative carry, it’s a way to build a portfolio that actually pays you instead of costing you.

    [email protected]614-418-6081
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