Intro: Newbie investor from Seattle, WA

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Intro: Newbie investor from Seattle, WA

Willy Lew
Member since 2019 · 6 posts · 5 votes

[WHEE I've been a long time lurker here until today!]

Hello BP,

My name is Willy Lew and I live in Seattle. I got my start in real estate back in 2012 when I bought my starter home and thought it was too good to be true to have roommates pay the mortgage. That home became part long-term rental and part Airbnb for the past few years. I was quite content with that rental until I came across BP. I got hooked on podcasts and RE audiobooks (the usual suspects), and I realized that instead of doing BRRRR I have only been BRSOMA -- Buy, Rent, Sit On My Arse. I now have a personal goal to expand my portfolio by a whopping 100% this year (which is more impressive than saying "one more rental", no?). :)

A little bit about me: I am a software engineer. I am married to my lovely wife who happens to be very supportive of REI, and we have a toddler who just learned how to say "clock" without the "l" today. I am a recovering addict from the frequent flyer miles and points game, but I am sure REI will keep me plenty busy!

My RE goal is to generate enough cashflow by buying-and-holding to reach financial independence. I am starting on SFRs, but commercial (especially single tenant NNN) will highly likely be in the picture down the road.

I am currently looking out of state because, well, Seattle. In fact, I am only looking at Pittsburgh at the moment and I am planning a trip out there in early/mid October to meet a few folks and build a team. If you're in the area and would like to talk shop, or if you have any referrals you trust there, please do reach out! :)

Cheers!

Willy

4Reply
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Most Popular Reply

James DainardPro Member
Real Estate Broker · Bellevue, WA · Member since 2015 · 415 posts · 1k+ votes
7y

Hi @Willy Lew welcome to BP! Seems like you're off to a great start in parenting and real estate. Just wondering why you're giving up on Seattle? I know it's an expensive market, but I've built my business here, starting with nothing. I would really encourage for you to come to my Investor 101 Class, the next one is September 30th at 6pm at my office in Bellevue. I would love to chat with you in person about some of the options available to you in the Seattle market. 

Podcast Guest on Show Seeing Greene: Paying Off Rentals, Partnerships Splits, & Using Home Equity
5Reply
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  • James DainardPro Member
    Real Estate Broker · Bellevue, WA · Member since 2015 · 415 posts · 1k+ votes
    7y

    Hi @Willy Lew welcome to BP! Seems like you're off to a great start in parenting and real estate. Just wondering why you're giving up on Seattle? I know it's an expensive market, but I've built my business here, starting with nothing. I would really encourage for you to come to my Investor 101 Class, the next one is September 30th at 6pm at my office in Bellevue. I would love to chat with you in person about some of the options available to you in the Seattle market. 

    Podcast Guest on Show Seeing Greene: Paying Off Rentals, Partnerships Splits, & Using Home Equity
    5Reply
  • Keyana Buckner
    Seattle, WA · Member since 2019 · 12 posts · 3 votes
    7y

    Hi Willy! Im a newbie investor in the Seattle are too! Who also plans to expand my portfolio by 100% this year. Love the way that sounds haha but I am planning on going from 0 REI's to 1 :). Out of curiosity, What made you pick Pittsburgh? I've been really interested in the Kansas City or St. Louis area. Seattle feels far out of my reach as far as it being approachable to a beginner.

    If you ever wanna grab a coffee and chat, I am looking for more local investor buddies to bounce ideas off of. 

    1Reply
  • Jamie DietzBusiness Member
    Lender · Pittsburgh, PA · Member since 2015 · 175 posts · 90 votes
    7y

    I grew up just north of Seattle but now live in Pittsburgh.  Feel free to reach out if need any local insights.  The weather in Pittsburgh is similar to the Northwest but the real estate market is totally different.  

    1Reply
  • Willy Lew
    OP
    Member since 2019 · 6 posts · 5 votes
    7y

    @James Dainard, I've seen folks say that "Seattle is expensive but deals can still be had" but, despite looking for quite some time, I couldn't find anything that can make the numbers work. I have not really given up on Seattle, but out-of-state seems more feasible at the moment and I wanted to give that more priority.

    Re: Investor 101 class

    Definitely attending that one! Signed up :)

    BTW, I just finished listening to you on podcast #338 -- crazy and inspiring stuff!

    0Reply
  • Willy Lew
    OP
    Member since 2019 · 6 posts · 5 votes
    7y

    @Keyana Buckner, nice bumping into you at the meetup today! :) I'll reach out to you offline

    0Reply
  • Willy Lew
    OP
    Member since 2019 · 6 posts · 5 votes
    7y

    @Jamie Dietz, thanks for posting! I'd love to hear your thoughts, and perhaps even meet up for a coffee when I'm in town if you're willing/free. I'll send you a message.

    0Reply
  • Lori Greene
    Specialist · Huntsville, UT · Member since 2015 · 458 posts · 249 votes
    7y
    Originally posted by @Willy Lew:

    [WHEE I've been a long time lurker here until today!]

    Hello BP,

    My name is Willy Lew and I live in Seattle. I got my start in real estate back in 2012 when I bought my starter home and thought it was too good to be true to have roommates pay the mortgage. That home became part long-term rental and part Airbnb for the past few years. I was quite content with that rental until I came across BP. I got hooked on podcasts and RE audiobooks (the usual suspects), and I realized that instead of doing BRRRR I have only been BRSOMA -- Buy, Rent, Sit On My Arse. I now have a personal goal to expand my portfolio by a whopping 100% this year (which is more impressive than saying "one more rental", no?). :)

    A little bit about me: I am a software engineer. I am married to my lovely wife who happens to be very supportive of REI, and we have a toddler who just learned how to say "clock" without the "l" today. I am a recovering addict from the frequent flyer miles and points game, but I am sure REI will keep me plenty busy!

    My RE goal is to generate enough cashflow by buying-and-holding to reach financial independence. I am starting on SFRs, but commercial (especially single tenant NNN) will highly likely be in the picture down the road.

    I am currently looking out of state because, well, Seattle. In fact, I am only looking at Pittsburgh at the moment and I am planning a trip out there in early/mid October to meet a few folks and build a team. If you're in the area and would like to talk shop, or if you have any referrals you trust there, please do reach out! :)

    Cheers!

    Willy

    Love your ambition Willy. Sounds like you will be all over it!

    0Reply
  • Michael HaasBusiness Member
    Real Estate Agent · Redmond, 🌧️ Seattle Investor-Agent | 🤑 Helped 400+ Clients Invest in Real Estate | 🏘️ Owns 23 WA Rentals & Airbnbs | 🏗️ Built 5 DADU's | 📈 You Can Do It Too · Member since 2016 · 724 posts · 3k+ votes
    7y

    @Willy Lew Seattle multi families are mostly over-priced, the big CAP rates in my experience are in large (6-8 bed or more) SFRs rented to young professionals by the room or STRs to tourists and business travelers. Both are less appealing to foreign buyers and the wealthy tech homeowners/beginner investors, so you have less competition and much lower $/Sq ft prices. The caveat there is they take a bit more management time, but as a beginner with 1-6 properties that's not much of an issue yet. Good luck, always open to grabbing a coffee or a beer to chat about the local market if your interested.

    [email protected]408-439-7873
    HouseHack Seattle | Michael Haas & Team572 Reviews
    WebsiteView Page
    4Reply
  • Willy Lew
    OP
    Member since 2019 · 6 posts · 5 votes
    7y

    Thanks for the insight @Michael Haas! I'll be sure to ping you back if I do decide to look locally again. :)

    0Reply
  • Gary Swank
    Real Estate Agent · Pittsburgh, PA · Member since 2014 · 821 posts · 255 votes
    7y

    @Willy Lew HI Willy, you are definitely looking at a strong market to invest in...Pittsburgh PA. Many investors see Pittsburgh as being more conducive to buy into as opposed to other more saturated markets. Many are also seeing properties that cash flow and have solid returns on investment. But of course, one must study the market very well as Pittsburgh changes, quite a bit, depending on neighborhood. Some areas are strong on providing a positive cash flow while others will drain the funds right out of you. So my advice is to get with someone very knowledgeable in the market. Feel free to reach out to me if you want to know more about the Pittsburgh area and market. Thanks, Gary

    0Reply
  • Account Closed
    Rental Property Investor · Sacramento, CA · Member since 2015 · 1k+ posts · 893 votes
    7y

    @Willy Lew 

    Your story sounds very familiar. I'll get you in touch with a friend of mine out there who has literally the SAME story as you. Software engineer, seattle, bought a house cheap in '12, rented rooms, used equity to purchase more deals out of state. @Steven Kwan has seen the good, the bad, and the ugly. The bad eventually became good, and the ugly seems like it's going to work out as well last I heard.

    I actually have a somewhat similar story too! House hacked for 6 years, still have a roomie here in Sacramento. I invest in a few select secondary and tertiary markets in the midwest. Here are a couple of things I would say to you, considering market trends, out of state investing strategy, etc...


    - Don't go with a major city. The saturation effect is very real. Remember, everything seems like a good deal when you live in Seattle, SF,LA, etc... but that doesn't mean you should go buy in Indy, Kansas City, Pittsburgh, etc... Look for maximum rent to value ratios- aim for a 10 cap. 

    - Target markets where working class assets work. This is where you'll make your cash flow in '19, and where you're going to see the least price volatility (think equity protection during a crash). Landlord friendly laws, easy eviction process, and high rental demand in working class areas are key to making the C+/B- property a successful endeavor.

    - Look for low expense ratios. Cheap property taxes, and preferably markets that don't reassess the tax value upon purchase. If you're buying small multi family (an option i recommend), look for markets with cheap water/sewer/garbage bills in the event they're owner paid.

    3Reply
  • Account Closed
    Rental Property Investor · Sacramento, CA · Member since 2015 · 1k+ posts · 893 votes
    7y

    @Keyana Buckner that above post is for you too!

    1Reply
  • Billy Linn
    Investor · Green River, WY · Member since 2017 · 122 posts · 59 votes
    7y

    @Willy Lew I like your humor! I’m a software engineer also, and my son says “sock” with a “c” instead of an “s” 😂.

    Sounds like you’re on the right track, I wish you good luck!

    0Reply
  • Willy Lew
    OP
    Member since 2019 · 6 posts · 5 votes
    7y

    @Gary Swank and @Account Closed, thanks for reaching out! :)

    @Billy Linn, thanks and good luck to you too... both in REI and in parenting ;)

    1Reply
  • Lakshmi Mahali
    Rental Property Investor · Pittsburgh, PA · Member since 2017 · 25 posts · 12 votes
    6y

    @Willy Lew Congratulations on taking the step to set up your RE goals!! I moved from Seattle to Pittsburgh an year ago and have been active investor. Happy to share with you on what I have learned about Pittsburgh market..

    0Reply
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