I'm currently looking to buy my first rental property, but after running some numbers nothing seem to cashflow in the greater Seattle area. Is there still deals in Seattle or should I look oos?
I'm currently looking to buy my first rental property, but after running some numbers nothing seem to cashflow in the greater Seattle area. Is there still deals in Seattle or should I look oos?
@Ryan Lam, we get cash flow with creative ways like STR, rent by the room, split level homes that get rented to two families, .....
If you are just renting one house to one fmaily, it will not cash flow
Real Estate Agent · WA · Member since 2021 · 254 posts · 173 votes
3y
The only way you can cashflow in Seattle is if you find some off-market opportunity to do so, a very convenient house-hacking scenario, or some heavy TLC. Median home prices are just shooting up while rents are not following. That is why we see a massive standstill in the market - low inventory and buyers refusing to get out of their investor holes.
If you really want to find something:
1) I would recommend that you go and try to speak with multiple agents and wholesalers to find off-market opportunities. Anything that you'll find on the market will just lead you astray.
or
2) Wait until interest rates drop. I don't have a crystal ball but this will probably happen during the next presidential election in 2024.
I'm currently looking to buy my first rental property, but after running some numbers nothing seem to cashflow in the greater Seattle area. Is there still deals in Seattle or should I look oos?
@Ryan Lam, we get cash flow with creative ways like STR, rent by the room, split level homes that get rented to two families, .....
If you are just renting one house to one fmaily, it will not cash flow
The only way you can cashflow in Seattle is if you find some off-market opportunity to do so, a very convenient house-hacking scenario, or some heavy TLC. Median home prices are just shooting up while rents are not following. That is why we see a massive standstill in the market - low inventory and buyers refusing to get out of their investor holes.
If you really want to find something:
1) I would recommend that you go and try to speak with multiple agents and wholesalers to find off-market opportunities. Anything that you'll find on the market will just lead you astray.
or
2) Wait until interest rates drop. I don't have a crystal ball but this will probably happen during the next presidential election in 2024.
I'm currently looking to buy my first rental property, but after running some numbers nothing seem to cashflow in the greater Seattle area. Is there still deals in Seattle or should I look oos?
@Ryan Lam, we get cash flow with creative ways like STR, rent by the room, split level homes that get rented to two families, .....
If you are just renting one house to one fmaily, it will not cash flow
@Sherief Elbassuoni are you still able to find split level homes around $500k?
I'm currently looking to buy my first rental property, but after running some numbers nothing seem to cashflow in the greater Seattle area. Is there still deals in Seattle or should I look oos?
@Ryan Lam, we get cash flow with creative ways like STR, rent by the room, split level homes that get rented to two families, .....
If you are just renting one house to one fmaily, it will not cash flow
@Sherief Elbassuoni are you still able to find split level homes around $500k?
It all depends on which city or neighborhood and what is the property you are willing to buy
Real Estate Agent · Puyallup, WA · Member since 2022 · 551 posts · 379 votes
3y
Seattle is tough for cash flow. I know the old saying "If you put down enough money, anything will cash flow" I think that's a dumb way to look at it because then you are just tying up a bunch of capital into one property. Not a good way to see growth.
Short answer, you will need to look into STR or MTR.
I don't see how you can, but why would you want to invest in Seattle anyway? For example, If you rent to a family with school kids(even daycare) you can't evict them during the entire school year. 9 months no rent! In Seattle it's open season on landlords. Forget it.
I don't see how you can, but why would you want to invest in Seattle anyway? For example, If you rent to a family with school kids(even daycare) you can't evict them during the entire school year. 9 months no rent! In Seattle it's open season on landlords. Forget it.
Rental Property Investor · Everett, WA · Member since 2015 · 458 posts · 386 votes
3y
@Ryan Lam are you just looking for this to be and investment property or could you look at doing a house hack? If you have the option to do a house hack, that could be a good way to buy an ugly property in a good area and force appreciation. After two years you can claim your tax free gains and move to the next one.
You are trading the cash flow in the short term for growing the equity which could be far greater in a couple years. This also gets you out of having to deal with the worst of the landlord tenant laws. Obviously it's not for everyone but just a thought.
@Ryan Lam are you just looking for this to be and investment property or could you look at doing a house hack? If you have the option to do a house hack, that could be a good way to buy an ugly property in a good area and force appreciation. After two years you can claim your tax free gains and move to the next one.
You are trading the cash flow in the short term for growing the equity which could be far greater in a couple years. This also gets you out of having to deal with the worst of the landlord tenant laws. Obviously it's not for everyone but just a thought.
John
Is it more difficult to do it through investment property instead of house hacking?
@Ryan Lam are you just looking for this to be and investment property or could you look at doing a house hack? If you have the option to do a house hack, that could be a good way to buy an ugly property in a good area and force appreciation. After two years you can claim your tax free gains and move to the next one.
You are trading the cash flow in the short term for growing the equity which could be far greater in a couple years. This also gets you out of having to deal with the worst of the landlord tenant laws. Obviously it's not for everyone but just a thought.
John
Is it more difficult to do it through investment property instead of house hacking?
With investment property route, you need to put higher down payment (15% for single family, and 20-25% for small multifamily, compared to starting 3.5% for house hack route). Also, interest rate for investment properties are 1 to 1.5% higher than house hack primary residence