Newbie buying in WA Puget Sound area

Newbie buying in WA Puget Sound area

Bremerton, WA · Member since 2016 · 19 posts · 6 votes
Hi all, I've been listening to the BP podcasts for a while, but this is my first time using the forum! My wife and I live in Utah right now as I finish up school, but we plan on settling in the Tacoma area this time next year. I grew up in University Place, but didn't pay attention to real estate enough to learn anything when I was in high school. We're interested in buy and hold properties in the area, but I don't know what a good deal looks like for the area or where to look to find good deals. I've been using Zillow to find foreclosures and auction homes, and ive reached out to a few agents. Does anyone have suggestions for resources? Any good wholesalers in the area? Also, what is a good deal for the area? How much can you charge for rent in a standard 3bd 2bth single family? Also, how important is the neighborhood when buying rehabbing and renting? Most of the foreclosure deals I've seen are in Lakewood or South Tacoma, but I'd prefer to work around steilacoom, north Tacoma, UP, some areas in Lakewood, Fife. Any good areas around there that you know of? Love to get your thoughts so I can soak up the knowledge and experience that's out there! Thanks!!
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Engineer · Seattle, WA · Member since 2014 · 59 posts · 35 votes
10y

welcome.  Anything a bit better than the 1% rule is decent buy in the area.  A true deal of course will be better.  Rents are in the 300 to 400 a bedroom for a rule of thumb. So you want to see a 3 bedroom below $120k if its turn key ready.  That may be tough off mls right now.  It really depends on what you are trying to accomplish.  Feel free to contact me if you would like more specific help.

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  • Engineer · Seattle, WA · Member since 2014 · 59 posts · 35 votes
    10y

    welcome.  Anything a bit better than the 1% rule is decent buy in the area.  A true deal of course will be better.  Rents are in the 300 to 400 a bedroom for a rule of thumb. So you want to see a 3 bedroom below $120k if its turn key ready.  That may be tough off mls right now.  It really depends on what you are trying to accomplish.  Feel free to contact me if you would like more specific help.

  • Michele FischerPro Member
    Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
    10y

    Christian, welcome to BiggerPockets!  Be sure to stay active now that you posted, setting up key word alerts can help with that.

    I can't help with the specifics of Tacoma, but I might suggest researching school quality, as that is a key factor in desirability.  Also, I go out to Craigslist each week and look to see what is for rent in my areas.  It helps see quality of the competition, prices, practices that are specific to the area.  In my opinion it is never too early to get a good understanding of the rental market.

    Cheers!

  • Bremerton, WA · Member since 2016 · 19 posts · 6 votes
    10y

    Thanks for the tips! Just curious, what are the most common rental types? 3bd 2bth? 

  • Engineer · Seattle, WA · Member since 2014 · 59 posts · 35 votes
    10y

    3 bed 1 bath.  2 bath is more desireable but in the era of the housing stock in the area they just arent common.  I have seen a few 3/1's converted to a 4/2 in fact i own one.  I also have a 4/1 a 3/1, And a 1996 infill house thats a 3/2.5 in the same neighborhood, it doesnt command a premium on rent as the prospectice pool cant seem to afford much more.  But that's just the situation on my "farm".  Your results may vary.

  • Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    10y

    @Christian Bateman

    Welcome. You have received some great advice. Fill in the foundation below.

    Check out the Start Here page http://www.biggerpockets.com/starthere

    Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.

    Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 100 past ones to catch up on.

    Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers (cash buyers). Find them through Google and meetup.com

    Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbook

    Consider checking out HUD homes for small multi's owner occupied gets first crack.

    You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

    Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

    http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

    Good Luck

    Paul 

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