1% Rule in Tacoma

[Rudy Manna]

1% rule anywhere around Seattle is impossible long since. Now it looks  very tight in Tacoma/Lakewood too, as far SFHs are concerned.

I have been actively looking and almost all of SFHs are around 0.7-0.85% range. Even fixers are lower than 1%. The old formula where get something around 100k, put 10k in rehab and charge $1100 pm looks like long gone.

Are other investors having better luck now? Any strategy I should be using?

[Justin Peila]

We get them on the MLS (still foreclosures) and at auction. But all of ours are at least 3 bedrooms. We can rent 3/1 for $1500-$1600. The rental market is very tight right now as well. We have not had to list our last three rentals - we get tenants from just the neighbors word of mouth before they are even ready to rent we have people stopping by wanting to put down deposits. If you throw an extra bath in there for a 3/2 you can get 1% all day long.