Tacoma, WA · Member since 2012 · 11 posts · 1 vote
Hello everyone,
Just thought I introduced myself. Currently eager to find my first deal but not exactly sure where to start or how long it would take to generate my first deal in the WA area. Talked to a few real estate agents already in the King and Pierce County areas, but none of the four-plexes met my criteria. I saw a few properties in the Auburn and Tacoma area. But haven't seen any properties that compelled immediate action. Was wondering if anyone else had similar issues? Thanks.
@Thanh Nguyen Welcome to BP. One thing I've heard from other people about Seattle rentals, is that the city is requiring landlord registration plus heavy handed regulation on landlords. I hear city regulations are favoring tenants tremendously that compliance is driving up rents or landlords are considering exiting the area. Perhaps other Seattle landlords can chime in on this. This issue can be mitigated with a competent property management company or with real good tenant screening plus rental lease agreement. So take these factors into consideration when working the numbers. Good luck.
Welcome to BP. I am based in Seattle and happy to recommend some real estate agents who have been very helpful. Shoot me a note if that would be helpful.
Big welcome to the site @Thanh Nguyen , thanks for introducing yourself to everyone! Just curious what your criteria is and what kind of deal would compel you to take immediate action.
You may want to reach out to @Brandon Turner , he's there in WA and is quite the savvy investor!
Welcome to the seattle market! So you live in utah or seattle? Are you a long distance investor? Either way welcome! The seattle market is tough to find cash flowing properties. Most multifamiles have much lower cap rates then the rest of the states. Rent rates are really great though, combined with really low conventional mortgage rates, with a little
Magic and patience I'm sure you will find something.
I will definitely reach out to @Brandon Turner as suggested. Thanks for replying.
My criteria are:
1). At least 1% yield of the property's asking price in cash flow.
e.g. 500k property would yield 5k annually or $416.67 monthly
2). At least 10% cap rate
e.g. NOI / (property asking price)
3). Fourplex (preferred), trilex, or duplex that is less than 20 years old
4). According to Kidder Matthews (2014), the regional market vacancy rate is 3.8% so I would like to see documentation reflecting this statistic or at least find out why this is or isn't happening at the prospect MF property.
Please PM if you are interested, thank you for reading my post. Have a great day.
I am currently living out of Renton, WA but do a lot of traveling. While I am traveling, I find time to meet with real estate meetups and look for investors. Make my my best attempt to aim and look at potential markets where ever I go. My last business trip was in Phoenix, AZ and there were a lot of opportunities down there but I was a bit tied up with my job so I didn't have a chance to close any deals. I prefer to be a backyard investor until I meet and network with other investors across the US. I grew up in CA and have no problem investing in CA, but there is a high barrier for entry in those markets.
Wold you happen to know any MF properties in WA that meet these criteria? Thanks in advance. Someone (@Mehran K. ) suggested you were the go-to person in WA.
1). At least 1% yield of the property's asking price in cash flow.
2). At least 10% cap rate
3). Fourplex (preferred), trilex, or duplex that is less than 20 years old
Hi and welcome to BP! I lived in the Seattle are for 21 years, and I now in Oregon. Seattle area can be very difficult to achieve the criteria you've laid out, and can much likelier be achieved in other markets, particularly in the Midwest, South, and certain northeast location such as Philadelphia.
@Thanh Nguyen Welcome to BP. One thing I've heard from other people about Seattle rentals, is that the city is requiring landlord registration plus heavy handed regulation on landlords. I hear city regulations are favoring tenants tremendously that compliance is driving up rents or landlords are considering exiting the area. Perhaps other Seattle landlords can chime in on this. This issue can be mitigated with a competent property management company or with real good tenant screening plus rental lease agreement. So take these factors into consideration when working the numbers. Good luck.
Welcome @Thanh Nguyen ! I am in central WA, but WA nonetheless and would like to welcome you! Like @Steve K. points out, King county is a tough one. Only county in the state requiring us to show cause to terminate a month to month agreement. Ugh! Hey, if you are interested in the sunny side of the state (sorry, coasters!) I can get the numbers you are looking for, but in older properties that are a little larger unit-wise (7-10 units). 1% per month gross, with vacancy less than 3%. Is residential financing the reason for seeking a quad or less? Just curious. Good luck either way!
Perhaps with larger multi-family properties (7-10 units), I may need to adjust my strategy ever so slightly. Because I plan to use a VA loan, which disqualifies all units above 4 units (Please correct me if this is a mistake). I will be more than willing to meet you at the halfway point to discuss possible opportunities &/or make arrangements to make things happen. Please PM me if you are interested, Thanks.
Thank you everyone for reading and posting, I'm pretty excited to be here on BP. Finding my first deal and sharing my success story.
@Thanh Nguyen there aren't any specific properties that come to mind, but you should be able to achieve that criteria south of Seattle - specifically in Tacoma where I invest, there are some great deals. My MF cashflows well and I haven't had a day of vacancy. May be tough to find newer properties though. Many in Tacoma are older. Maybe try the south sound in general.
Hi Thanh. Welcome to BP. I am based in Seattle. Have you looked into condos? In many cases, price per unit for a condo is lower than price per unit for a 4-plex. Even taking into account the HOA dues, there are opportunities to find high cash flow opportunities in the condo space. Typically, deals are approximately 8% and upwards, but 10% cap is achievable. Let me know if you have any questions. Best of luck.