Curious on investor's view on owning MF in Bremerton WA. we own there but curious what others think of the area. thank you for your time
Hi Mike- I own 1 sfr in Bremerton and am pursuing more small MF there. I like the market for cash flow and the idea of building a "platform" of properties. It's unlikely to have equity gains but should be steady on cash. So it's like hitting doubles, but not swinging for home runs.
How many properties in Bremerton do you own? Why did you first pursue it as a strategy?
I dont have Multifamilies although i have multiple families in one SFH. I think Bremerton is a pretty decent little town/city. with 40K people and with a currently pretty decent rental market. Most 2-1s are $700-$1K which is pretty sweet. The shipyard is a blessing and the biggest fear. If for any reason that was shrunk we could be hurting so we are super reliant on one industry. Hopefully other businesses that are here will expand and we can attract more and more people that are commuting from Seattle to Downtown Bremerton. I personnally feel very connected to the entire Puget Sound region. I dont have to get stuck in heavy trafffic everyday and instead i just jump on the ferry and cross over with little to no head aches and i get to enjoy everything thats offered. Great food, Suzy's Kitchen is bomb diggity, Saibieeds, a couple fantastic mexican joints and more. The other major factor for investing in Multifamiliys is the type of renter. In bremerton it is mostly blue collar. So the normal "can i do work for rent" question is always asked and confusion and lots of reminders is all part of the game.
I have 3 properties in Bremerton.. 2 of them do ok and I'm probably breaking even long term on the other if you factor in loan pay down..
As Alex said and I'm sure you know the entire city is totally reliant on navy/shipyard which seems to offer both a little protection in that here is so many guaranteed high paying jobs going to people who actually want to rent not buy so keeps rents high and strong... The flip side to that coin is obviously if the navy/shipyard scales back or goes away (imo highly unlikely but it happens, shipyards close and things change) the entire city would be devastated..
There may be some small appreciation coming our way near term though, with the huge boom Seattle has been going through and the fact that nobody wants to drive in Seattle means a trickle down effect in surrounding areas and a ferry ride is a pretty good commute option for people. Bremertons piece of this Seattle boom trickle down will probably be pretty minor though compared to the areas around Seattle already on the other side of the sound.
thank you for the replies!
That would be Bremertons money shot. That would count big time i think in the downtown development. Although parking will continue to be an issue and will be a larger issue if this is implemented, i believe people will deal with the parking and park a few blocks back and enjoy a nice walk in and grab some coffee at The Coffee Oasis or the Corner Coffee and Cafe. Im most looking forward to the foot ferry and to the continued development of downtown INCLUDING Mannette. I love that the buildings are getting taller and that new community centers are being developed and roads are being repaired and bicycle lanes are being put in. I think all of this translates into a successful market. I love all of the downtown homes and i do believe there is appreciation there as well as the area between Bremerton and Silverdale off the hwy 303. Its an interesting place that has great values and hasn't really been totally developed although is on its way, alot of opportunity out there as well and a good place to pick up a home and have it appreciate as the community continues to be developed around it. Tons of Value add possibilities.
We do have some super awesome multifams though and it seems like people hold on to them until they can barley hold them and you've got some cleanup/value ADD! BOOM! MONEY MONEY MONEY! IMHO duplexes in Bremerton truly suck! After duplexes they start to get good. Again Manette and downtown Bremerton Multis are usually very cool and have alot of style and personalities that is really cool.
@Andrew Kniffin is dead on. Not much appreciation but definitely a solid rental market with inexpensive properties.
love how excited you are!!
We own a MF near DT off 11th and it is taking some time and $ to set it straight but it's getting there. We bought there because we buy into the idea that Bremerton will benefit from the growth i n puget sound and commuters to Seattle. In fact we had a tenant that worked in DT Seattle and did the boat everyday. The boat is WAY better than driving and the commute drive times are only increasing. Also where else can you pick up a home with good bones, spend a reasonable amount of $ to rehab and end up with a really nice home with reasonable and enjoyable commute to seattle for well under $200k.
Personally I'm not too worried about the navy going away. Not easy to just shift navy boat around like you can shift folks and equipment from JBLM. Love the navy renters we have. Everyone of them are nice people, keep the place neat and clean, respect the neighbors and pay on time. Hate the turn over when the transfer to a new base but I would take navy folks all day every day
I also like the Navy renters in Bremerton. Bremerton is a solid area and I'm unapologetically enthusiastic about Bremerton. There is a strong community feel and many neighborhoods have strong neighborhood coalitions. I'm a board member on the Manette Neighborhood Coalition. There's also a Union Hill group and several others. I agree that Seattle will continue to get more congested. Commutes on the Seattle side will get longer and more tedious. We are already seeing Seattlites moving to DT Bremrton and Manette because the ferry commute is faster and better than their former commute from West Seattle to Pioneer Square. Bremrton properties are well built and the city is forward thinking enough. We have great momentum, a solid set of leaders and we are attracting younger families who are investing their time and heart into our Bremerton community.
I own quite a few duplexes in Bremerton, along with some SFR and a 4-plex. Rental market is very strong, lots of infrastructure improvements and like others have said we are seeing more people move over from the Seattle side of the water. @Alexander Zeisberg , I know you don't like duplexes, but I think they're awesome and will buy up any reasonable deal you can send me. Bremerton has struggled for a long time to figure out the downtown issues, but I really think we're on the right track with new development and improvements.