Hello! I have been spending my last year of college educating myself on rental real estate and plan to purchase my first property through the house hacking method after 1-2 years of working. I will be moving to Seattle in the next couple of months. However, I know that most houses in the area are currently listed for less than a week, a TON of the sales are paid entirely in cash and it truly is an expensive house market.
Any tips for a first time investor in Seattle? Should I try holding off and investing in another city (not house hacking in this case) as a first time investor since it will most likely be an easier market?
@Valeria Boesch connect with a real estate agent that knows your market in and out. You are correct, homes are selling fast and usually for way over asking. With that said, this is where you need to get creative as an investor. Nail down your specific niche and criteria so, when the opportunity presents itself, you're ready to pull the trigger. Also, since you mentioned you still need two years of taxable income via your W-2, you've got time. Continue to educate yourself and keep an eye on the market. Best of luck!
@Valeria Boesch , welcome to the PNW. Yes, the market here is pretty hot, but we can still get great house hack deals.
Feel free to reach out to discuss more.
Is there any specific area or neighborhood your looking at in the Seattle area?
@Valeria Boesch For our Seattle house hack, we were looking and offering during the holidays to avoid the competition a bit. It has a basement unit that we're running as a STR and worked perfect for us, though it sat on the market for a while because of the lower ceilings in the basement. I would suggest looking for properties that may need some renovations or that have some oddities that you can work with.
It’s true the housing market is crazy in Seattle. Supply of listings is half what it was a year ago which means demand will go up.
It all depends on your criteria and what you are looking for in a househack. There are great house hacks if you are willing to drive a little bit or like Kat said put in a little work to make it nicer. Since you will need W2 income to qualify for a loan (I’m assuming) I would spend the time exploring different neighborhoods and going to open houses to try to nail down your criteria for a house when you are ready to start looking.
@Kat He Thanks for your advice! Do you mind me asking what neighborhoods you were looking at?
@Valeria Boesch We were looking at Maple Leaf, Phinney Ridge, Fremont, Wallingford, Ballard, Central District and Cap Hill. We personally wanted to live closer to downtown, but we found that these areas were close to tourist attractions and neighborhood shops and had a healthy amount of STR activity.