Outside investors' thoughts on buying MF in Washington State?

Seattle, Washington
Multi-Family and Apartment Investing
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Outside investors' thoughts on buying MF in Washington State?

Brandon VukelichBusiness Member
Real Estate Broker 路 Tacoma, WA: 馃彚 27 LTRs 馃彙 3 STRs 路 Member since 2018 路 549 posts 路 458 votes

Curious if any investors (outside WA) are watching or interested in acquiring MF props in the greater Seattle-Bellevue-Tacoma markets.  Are we even on your radar?  There are more than the following points but here are some quick pros/cons that I believe may be factors driving demand or preventing investment.

PROS

- Strong jobs, specifically in tech, Boeing, logistics.

- Strong rent growth/demand.

- Double digit appreciation in prices (when things are good).

- In addition to jobs, we attract many new residents due to access to a wide variety of recreational activities.

CONS

- Increasing number of new laws that favor tenants (top two most anti-landlord cities, IMO, are Seattle and Federal Way).

- When recessions hit or bubbles burst, double digit drops in value (depreciated prices).

- Prices are still a premium, CoC returns initially remain lower than what many average investors hope to achieve.

- Heavy competition.


I'd love to get a sense on investor sentiment on investing in multifamily in Washington State. 

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Austin S.
Investor 路 Ozark, MO 路 Member since 2016 路 14 posts 路 8 votes
4y

I'm looking but new to multifamily

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  • Austin S.
    Investor 路 Ozark, MO 路 Member since 2016 路 14 posts 路 8 votes
    4y

    I'm looking but new to multifamily

    1Reply
  • Perry L.
    Investor 路 SAN FRANCISCO, CA 路 Member since 2012 路 42 posts 路 10 votes
    4y

    I just sold a triplex in Seattle. Double the price I paid six yrs ago. Hard to let it go. But rather sell when I want or when I need. If you have a value-add venture, count me in as an equity partner. 

    0Reply
  • Julie Nealey
    Member since 2022 路 94 posts 路 22 votes
    4y
    Quote from @Brandon Vukelich:

    Curious if any investors (outside WA) are watching or interested in acquiring MF props in the greater Seattle-Bellevue-Tacoma markets.  Are we even on your radar?  There are more than the following points but here are some quick pros/cons that I believe may be factors driving demand or preventing investment.

    PROS

    - Strong jobs, specifically in tech, Boeing, logistics.

    - Strong rent growth/demand.

    - Double digit appreciation in prices (when things are good).

    - In addition to jobs, we attract many new residents due to access to a wide variety of recreational activities.

    CONS

    - Increasing number of new laws that favor tenants (top two most anti-landlord cities, IMO, are Seattle and Federal Way).

    - When recessions hit or bubbles burst, double digit drops in value (depreciated prices).

    - Prices are still a premium, CoC returns initially remain lower than what many average investors hope to achieve.

    - Heavy competition.


    I'd love to get a sense on investor sentiment on investing in multifamily in Washington State. 


     I see a lot of people investing in Ohio, Florida, Texas and Arizona. One thing I think you forgot in your pros, is that we are a no income tax state. This helps to level the field with our premium cost up front. IMO

    I have a multifamily mixed use development property, and I am finding that I am really sitting on a great piece of land, when I run the analysis, especially after the re-zone split. 

    1Reply
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