Leavenworth, Wa Short Term Rentals Market

Short-Term & Vacation Rental Discussions

Leavenworth, Wa Short Term Rentals Market

Rental Property Investor · Member since 2017 · 12 posts · 4 votes

Hello! I'm moving to the Seattle area in Spring 2019 and looking to potentially enter the STR market in the Leavenworth/Lake Wenatchee area sometime next year. I currently own a multifamily in Charleston, SC and am very unfamiliar with the STR game. I'm looking for any insight into STR in the highway 2 to Leavenworth area. It seems like a Tacoma multi family is going to be the safer route but I'd be interested in taking with anyone who has experience here.

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Nik Moushon

Architect · Wenatchee, WA · Member since 2018 · 843 posts · 907 votes

Originally posted by @Ben Freeburg:

Leavenworth is a great and fun town. However, it does not allow STR rentals in order to support its lodging industry. Something to consider in your analysis. You'd have to look outside of town. Unfortunately, the STR market is getting tougher in the NW due to city ordinances...

Partially correct. There is no STR allowed in the city limits of Leavenworth BUT only in residential zones. This does take most the housing out of consideration but I know there are some in town that are not in residential areas and you can build SFR in no residential zones. Some have exemptions built in already and other would require a CUP. The good thing though is the city limits are actually very small and it doesn't take long to get into the county and then STR are allowed.

http://cityofleavenworth.com/col-assets/uploads/20...

You only need to read the second section on the first page. The rest doesnt concern STR.

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Natalie KolodijBusiness Member
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Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
7y
Leavenworth is an awesomeeee little town- Sometimes highway 2 closes due to snow though so I'd factor that into your occupancy rates.
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Bjorn AhlbladPro Member
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
7y
Tacoma is way over priced in my view; and they are passing laws that ape Seattle's tenant centric legislation.
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Brandon VukelichBusiness Member
Real Estate Broker · Tacoma, WA: 🏢 27 LTRs 🏡 3 STRs · Member since 2018 · 547 posts · 457 votes
7y
Originally posted by @Christian Pirotte:
Hello!
I'm moving to the Seattle area in Spring 2019 and looking to potentially enter the STR market in the Leavenworth/Lake Wenatchee area sometime next year. I currently own a multifamily in Charleston, SC and am very unfamiliar with the STR game. I'm looking for any insight into STR in the highway 2 to Leavenworth area.
It seems like a Tacoma multi family is going to be the safer route but I'd be interested in taking with anyone who has experience here.
I'd be happy to provide a little more insight into the Seattle-Tacoma MF market but would need to know more about your short or long term investment strategy/goal. Buying a property for STR in Leavenworth is much different than going for MF in Tacoma. Send me a PM if you'd like.
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Jon Latorre
Real Estate Broker · Boise, ID · Member since 2017 · 101 posts · 41 votes
7y
Leavenworth is one of the best STR markets in the nation. Relatively cheap property that can generate solid ROI.
https://www.vacasa.com/real-estate/leavenworth-was...
https://www.usatoday.com/story/travel/2018/08/14/these-top-25-markets-buy-vacation-rental-usa/984513002/
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Ben Freeburg
Rental Property Investor · Seattle, WA · Member since 2011 · 47 posts · 12 votes
7y
Leavenworth is a great and fun town. However, it does not allow STR rentals in order to support its lodging industry. Something to consider in your analysis. You'd have to look outside of town. Unfortunately, the STR market is getting tougher in the NW due to city ordinances...
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Nik Moushon
Architect · Wenatchee, WA · Member since 2018 · 843 posts · 907 votes
7y
Originally posted by @Ben Freeburg:

Leavenworth is a great and fun town. However, it does not allow STR rentals in order to support its lodging industry. Something to consider in your analysis. You'd have to look outside of town. Unfortunately, the STR market is getting tougher in the NW due to city ordinances...
Partially correct. There is no STR allowed in the city limits of Leavenworth BUT only in residential zones. This does take most the housing out of consideration but I know there are some in town that are not in residential areas and you can build SFR in no residential zones. Some have exemptions built in already and other would require a CUP. The good thing though is the city limits are actually very small and it doesn't take long to get into the county and then STR are allowed.

http://cityofleavenworth.com/col-assets/uploads/20...
You only need to read the second section on the first page. The rest doesnt concern STR.
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Ben Freeburg
Rental Property Investor · Seattle, WA · Member since 2011 · 47 posts · 12 votes
7y
@Nik Moushon Great clarification on this. The county is desirable, but I think in town is where a STR would thrive. Just need to find the right place! My family has a place outside of town and we love it over there.
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Nik Moushon
Architect · Wenatchee, WA · Member since 2018 · 843 posts · 907 votes
7y
Originally posted by @Ben Freeburg:

@Nik Moushon Great clarification on this. The county is desirable, but I think in town is where a STR would thrive. Just need to find the right place! My family has a place outside of town and we love it over there.
In town is always the most desirable but until these little towns start realizing that Airbnb is here to stay going just outside is going to be the only option. Unless you do an actual BnB business. Theres also a couple other ways around this that would able you to do something similar but its pretty much becoming part of the lodging business at that point.
Anyways, I digress back to my main point...Leavenworth is a unique vacation town because of its location. And because of the law of no STR in the city that is forcing everyone, both owners and renters, to look just outside of town for STR. This is where you need to look if you are wanting to get into STR here. Those both houses and land are at premiums there. For both this reason and just development in general. Acreage can easily get into the millions of dollars and SFR lots are in the low to mid 6 figures.
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Ben Freeburg
Rental Property Investor · Seattle, WA · Member since 2011 · 47 posts · 12 votes
7y
@Nik Moushon what's the general cost to develop in Chelan County? Say the lot has septic power, etc, just need design, permits, then go vertical w/mid range finishes. Any thoughts? thanks!
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Nik Moushon
Architect · Wenatchee, WA · Member since 2018 · 843 posts · 907 votes
7y
Originally posted by @Ben Freeburg:

@Nik Moushon what's the general cost to develop in Chelan County? Say the lot has septic power, etc, just need design, permits, then go vertical w/mid range finishes. Any thoughts? thanks!
It can vary pretty easily. Land is going to be your biggest factor and that depends on location, regardless of what infrastructure is there or not. The next big factor is actually getting a contractor. We are actually short on contractors out here so they either jack their prices up or flat out are too busy. Its been a royal pain for everybody, not just residential builds.

As for construction cost just on going vertical I would think for a "modest" house you are looking at a range of $120-150/sq ft. Again some of that varies because of what I said above. If you are building on the cheap to keep the costs as low as possible (i.e. for affordable housing projects) you could probably get that down to $100-110 but thats pushing it. Everyone is taking advantage of this crazy market. Hopefully next spring will bring a correction and bring this all back to reasonable prices.
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Ben Freeburg
Rental Property Investor · Seattle, WA · Member since 2011 · 47 posts · 12 votes
7y
awesome, I've got the land covered, just need to figure out the vertical side and see if it all makes sense! thanks for the insight.
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Nik Moushon
Architect · Wenatchee, WA · Member since 2018 · 843 posts · 907 votes
7y
Originally posted by @Ben Freeburg:

awesome, I've got the land covered, just need to figure out the vertical side and see if it all makes sense! thanks for the insight.
No problem. Let me know if you need any other help. I'm an architect and work in a firm that is in downtown Wenatchee.
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