Where to focus in Washington

Question

I am based in California and looking to make some new investments in Washington State / WA, ideally within 1 to 2 hrs form Seattle.  I am looking for sub $100k rentals, single family or small duplex, for profitable cashflow.

Any recommendations for which areas or neighborhoods I should focus on? Or how I should go about doing more research on it?I am also interested in partnering with locals.

Many thanks,

Timothy Tooker · Answer

@JT Johansen

Going to be difficult to find sub 100k Rentals within 1-2 hours of Seattle. You did not mention if that was with or without renovation? You might be able to find something for 100k, but it is going to need to be renovated.

Jay Hinrichs · Answer

concentrate were brandon turner has his rentals out in the Abeerdeen area there are many sub 100k homes there... Long beach ocean shores.... centralia and the little towns around them

JT Johansen · Answer

@Timothy Grothuesmann  Thank you for your feedback.  That is what I was suspecting. I understand that I need to add value with renovation to achieve my goal.  I am about to do more detailed research myself, and would like to pick your brain some further, once I have done my initial study of the region.

JT Johansen · Answer

@Michael Lee thank you for your suggestions. It is very much in line with my plan.

Michael Lee · Answer

Hello and welcome to this website!  If you don't know anything about the state of Washington I would suggest that you locate within an hour's drive and it needs a diverse economy and growth of population.or a location that has the most closings.  Don't worry about the competition.  Some of them may end up being your friends.  Try to get a property management company to keep up with the maintenance and other phone calls so you do not have to worry about it.  Learn as much as you can before starting.  Mistakes and fear are pretty normal.

Do what is working with others in that area.  YouTube is another site you can use to learn.  Try to locate your prospective properties away from high crime and drug areas.  A good partner that complements you might be a good area to work in.  If you can make positive cash flow and get property management that would be great.  If you have to travel are you talking about driving or flying?  One way to fing an acceptable market area ask experienced city building people, agents that have been around for a while, and talk to the local Chamber of Commerce to give you present and future plans that will effect you.

One of the things you ought to do before starting investment is to form some type of a corporation or a LLC, depending on your wealth and what you have to take.  You might want to hire a lawyer and/or a CPA (or tax accountant) to advise you on which way to go once you have selected your niche and market.  ("'House Hacking") is a cheaper way to go if you get conventional loan.  There seams to be more lenders that make themselves visible.  They are trying to defeat the cash buying that is getting more popular today. Whoever you use get a loan letter before you start and figured out who you are going to use.

Always do the math analysis and try to look at your prospective properties or at least have a clause in the sales contract that allows you some time (usually about 10 days) to make a detailed inspection and possibly back out of the deal without a penalty that makes you hurt.  Do what is average in that neighberhood.  Investment takes marketing and salesperson abilities. You might ought to look for primary Team members who are local to your property before starting.  Primary Team members are Attornies, real estate Agents, a CPA (or accountant), Inspectors, General Contractos, and Handymen.

I am 60 years old and have a bunch to say.  Track what you do to review it regularly to help you informed and try to decrease expenses and how you might increase the income.  Talk to as many as you can from around where the property is located like a real estate agent and an attorney.  The bulk of my experience is in construction.  I have been in the construction business since I was 17.  I also held an active real estate broker license for about 30 years but never did that full time.

Good luck to you!

Where to focus in Washington

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