Olympia,Tumwater,or Lacey???

Question

Hi everyone,

I am currently live just north of Seattle but am looking to relocate down towards the Olympia-Lacey area and to invest in a fix and flip (in lower-middle income neighborhood) then 1031 into a 4-plex, which will be owner-occupied. With these interests and goals in mind, does anyone have recommendations as to which of these cities would be a good place to move to for a beginning investor? Which city has a good inventory of fixer-uppers and 4-plexes and how fast are properties moving in those areas? I am also looking for a competent, Investor-friendly agent that I can work with and is familiar with this type of strategy.

Curtis Bidwell · Answer

@Carlos Oros I have been investing in these 3 towns and surrounding area for 15+ years. We have an excellent stable economy and solid rental base.  Each area has its pros and cons, some are better for cash flow others for appreciation. Lacey has done some excellent improvements and has a lot of new construction. Older areas are not so good. Tumwater is small town community.  Solid rental market - close to state offices. Olympia has a variety of new, old, established and eclectic.  feel free to connect with any questions you may have.

Charles David · Answer

Hi Carlos,

I bought my second single family home in Lacey in October 2015 and have been living here since then.  I also lived in Tumwater a few years ago, I was renting back then.  I could have bought a tri-plex but wasn't sure how to analize the deal and got cold feet.  So now I am in Lacey and am looking for a four-plex as well but I am not ready to move at this point as I am still using my rental here as my home and don't want to move on just yet.  I would be glad to have coffee with you sometime and I can also give you the phone number of the broker that helped me close the deal on my current place.  I like the Lacey area because it is near Joint Base Lewis McChord and there are a lot of military families that like to rent.  There is a single family home for sale in the subdivision that I bought my place in that could go for a reasonable amount when someone makes an offer on it.  It has been for sale since I moved in in October.  Contact my on BP or give my cell a call if your in the area.  My cell number is in my profile info on here.

Best regards,

Chuck David

Kerry Smith · Answer

@Greg Horn - Looks like Honolulu Greg

http://www.staradvertiser.com/breaking-news/army-moving-west-medical-headquarters-to-hawaii/

Bill Exeter · Answer

Properties acquired with the intent to rehab/fix and then sell/flip to not qualify for 1031 Exchange treatment.  Fix/Flip properties are actually bought and held for SALE and not held for investment as required for 1031 Exchange treatment.  It all boils down to your intent.  If your intent is to buy, fix and then flip, it would be disqualified under audit.  If your intent is to buy, fix and then HOLD for rental, investment or business use, you would qualify for 1031 Exchange treatment.

Kerry Smith · Answer

@Carlos Oros - Awesome post Carlos! I am active duty military and also an investor friendly real estate agent. My wife and I relocated here in September 2015, and we are currently house hacking a duplex in Lacey. Our plan is very similar to yours, 1031 exchange in to a larger 4-unit.

I would be more than happy to help you or @Charles David  @Curtis Bidwell in anyway possible.

Please feel free to contact me anytime to chat!

Ryland Taniguchi · Answer

I am active in Lacey-Olympia-Tumwater but have slowed down on acquiring rentals here as I have heard that JLB will be losing 16,000 jobs in the near future. That would strong affect Yelm, Lacey and Spanaway in my opinion as those are strong military rental markets.

Michael David · Answer

Ryland,

Thanks for the heads up. I'm wondering where did you find the article that stated that JBLM will be losing 16,000 jobs? Just out of curiosity! Thanks for the heads up and post!

---Michael

Greg Horn · Answer

@Kerry Smith where in Hawaii is the Western Regional Medical Command relocating to?

Kerry Smith · Answer

http://www.seattletimes.com/seattle-news/joint-base-lewis-mcchord-to-cut-about-900-civilian-jobs/

The base only has about 16,000 civilian workers - I do not think they are all going to be gone in the near future. In regard to active duty military personnel, yes downsizing is going on, but we are going from 490k troops to 450k - a total of 40,000 over 2016-2017. JBLM will lose a few thousand troops when the Western Regional Medical Command relocates to Hawaii, but otherwise will not be majorly affected.

JBLM will continue to be the largest employer in the Puget Sound for many years to come, and the greater JBLM area will remain an excellent area for flips and buy & hold investors due to the high rental demand.

Carlos Oros · Answer

@Julie Rossman I prefer to be in the Olympia/Lacey area so I will be relocating anyways.

Olympia,Tumwater,or Lacey???

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