Multi-family investing in the Pacific Northwest

[James Terrell]

Looking to get in to multi family real estate investing in the Seattle, Tacoma and Olympia Area after BRRRR A duplex or 4-plex.

Any thoughts and advice on the PNW multi-family market?

[Michael Haas]

Multi's are competitive out here- we have a growing SFH portfolio in Seattle and have been trying to buy a few Multi's for about a year now but nothing has penciled out. Even without considering the Seattle City Ordinances, Tacoma and Olympia may be better neighborhoods for you - our SFH's in Seattle have been getting great returns but I haven't found anything comparable for Multi's. Some good high 5% and low 6% CAPs in both those neighborhoods, which after improvements and raised rents might be 7% CAPs - the properties I'm seeing in Seattle tend to be .5% lower CAPs than that and often have less potential to add value.

I'd check out Renton too - I'm pretty bullish there.

Cheers and good luck! I don't work much down in Olympia, but we're actively investing in Seattle, Renton, and a bit of Tacoma so shoot me a message if you'd like to grab a coffee and chat in more detail.