Real Estate Agent · Seattle · Member since 2015 · 34 posts · 6 votes
Hi everybody, Im currently in a position to buy my 2nd house. I live in Seattle and will not be able to buy anything here or in the surrounding areas due to the market and high prices.
This leads me down the path of out of state investing. I am wondering what some good places are to start looking for rentals that are out of state and maybe someone who has done it them self's to let me know the ins and outs of it.
Where do you recommend looking for property's?
What are some things I should take into consideration?
How should I move forward now that I know what i want to do?
I'm looking for a single family or Duplex/Triplex that cashflows at a minimum of $500 a month with a purchase price under 100k (more cashflow for Du/Triplex)
Let's apply some common sense here ... why on Earth would a duplex or triplex sell for under $100k retail and cash flow $500/mo on paper? If it is such a great deal, then how could an out of state buyer waltz right into a market that they have literally no familiarity with and pick it up right of the MLS for that price? Does that make any logical sense, or is it that maybe, just maybe, all of the locals passed on it even at that price for a reason and there is some other reason(s) it is priced so low that you are not fully considering ... you my friend have some serious flaws in your thinking IMHO ... I know this probably sounds harsh, but not nearly as harsh as the lesson you will likely receive if you carry out your plan. Stay local and hands on ... if you can't afford Seattle, then either find a nearby market that you can or save, educate, and wait OR move to one of those "high cash flow" markets and invest there as a local after you familiarize yourself with the lay of the land ...
Sorry, it's my first time posting on my phone and I posted that early.
I meant to say, I am curious why you say not Yakima if you don't mind expanding on that.
Let's apply some common sense here ... why on Earth would a duplex or triplex sell for under $100k retail and cash flow $500/mo on paper? If it is such a great deal, then how could an out of state buyer waltz right into a market that they have literally no familiarity with and pick it up right of the MLS for that price? Does that make any logical sense, or is it that maybe, just maybe, all of the locals passed on it even at that price for a reason and there is some other reason(s) it is priced so low that you are not fully considering ... you my friend have some serious flaws in your thinking IMHO ... I know this probably sounds harsh, but not nearly as harsh as the lesson you will likely receive if you carry out your plan. Stay local and hands on ... if you can't afford Seattle, then either find a nearby market that you can or save, educate, and wait OR move to one of those "high cash flow" markets and invest there as a local after you familiarize yourself with the lay of the land ...
I live in Yakima and there may be other views but what I see or know is that Yakima has very low inventory of properties for sale lately which has resulted in a 9-10 % gain in avg prices (SFR) here the past year. We usually don't experience those kinds of swings in market (Yakima area typically doesn't see the BIG gains and dramatic drops in RE market historically). So for investors, cap rates are pretty compressed. Also, since we're only a few hours from the crazy Seattle RE market, some investors have migrated over to this side of the mtns to try and buy SFR/duplex/MF etc that are or may appear to be better deals than what they can find in their 'hood. As a result there are more buyers chasing relatively little inventory. In Sea the avg home price is like $550k or thereabouts and in Yak I think it's around $200k (I'm using real general #'s) so on the surface Yakima looks like a steal. Duplexes, MF etc are also a lot less $ on a relative basis. The vacancy rate in Yak a few months back was around 2-3% I think so demand is basically outpacing supply right now and only so much land and zoning is avail or zoned for new MF development. Enrique Jevons is a BP member. He owns properties in Yakima in addition to a PM company so if he sees this thread he may have more input based on his day to day dealings with the market, trends etc.
In a good market like now. The tide floats all boats including tertiary markets. Not saying they are not good for now but it's my personal criteria. There are plenty of secondary markets with Cashflow. Why re create the wheel.
I am a lender and real estate investor. I see rent rolls for properties all over the USA on a daily basis. Some of the best cash flowing area are Philadelphia, Indianapolis, Kansas City, and Chicago. Give me a call or email to discuss further. I can help grow your real estate portfolio sooner rather than later.