Looking for suggestions on where to find MFRs for cashflow in WA

21 Replies

Hi all,

I'm an interested investor currently living in the greater Seattle area.  With the Seattle market as it is, I'm looking for the suggestions on where to hone my searches for multi-family properties for cash flow.  If people are having success with these numbers in Seattle, that's great, but I'm also thinking looking elsewhere is worth it--to areas like Spokane, Tacoma, Yakima, etc.  While I'd love to jump straight into a 30+ apartment complex for economies of scale, I figure it may be better to bite off a smaller 2-4 unit property to start, which will help me learn the ropes, build the systems to scale, and establish a track record.  I have some equity and conventional loan pre-approval already, so I'm ideally targeting properties under $600k (preferably much lower, as I don't want to blow all of my equity on the first buy), 2-4 units, mostly cosmetic facelifts (will entertain more thorough work, but don't have an established team in said area yet, obviously).  Since I'm working full-time w/ W2 income, I'll need to use a PM.

Thanks in advance.

There are a half a dozen large apartment complexes around Lakewood, from 10-56 units.

@Seth Borman Thanks for the suggestion!  I haven't looked in that area yet.  Do you have any experience in that area?

I should also mention I'm meeting with a broker tomorrow morning who specializes in MFRs for investors around WA state, but wanted to gather other opinions to good areas to focus on.

@Pete Mathias , if you are on Facebook, make sure to join group called: WA Real Estate Investing.
There are alot of active investors there, some who may have off-market properties that match your criteria.

Originally posted by @Pete Mathias :

@Seth Borman Thanks for the suggestion!  I haven't looked in that area yet.  Do you have any experience in that area?

I should also mention I'm meeting with a broker tomorrow morning who specializes in MFRs for investors around WA state, but wanted to gather other opinions to good areas to focus on.

Talk to Ted Sipila hes a good guy at Kidder Matthews Tacoma, let him know I sent you.

He's been doing multi-family there for over 20 years if there is someone who knows whats coming up, who the smith's are, who the McConnley's are, and such it would be him.

Albert Bui, Lender in CA (#345453), WA (#345453), TX (#345453), and TN (#345453)
949-514-5106
Originally posted by @Seth Borman :

There are a half a dozen large apartment complexes around Lakewood, from 10-56 units.

 Those are great but its probably all under the 5 (CA talk) or I5 (WA lingo) and extremely high maintenance for his first deal unless he's up for that challenge.

I know investors who do well down there as well, but just not sure if its a first deal type of thing.

Albert Bui, Lender in CA (#345453), WA (#345453), TX (#345453), and TN (#345453)
949-514-5106

@Ruth Bayang Great idea, and thanks. Just put in my request to join that group. I'm also making the time to attend some local REIAs and REI clubs, too.

@Albert Bui Definitely will reach out to Ted--thanks for the suggestion!

Besides the Tacoma area, any other areas people are having success with?

Originally posted by @Pete Mathias :

@Ruth Bayang Great idea, and thanks. Just put in my request to join that group. I'm also making the time to attend some local REIAs and REI clubs, too.

@Albert Bui Definitely will reach out to Ted--thanks for the suggestion!

Besides the Tacoma area, any other areas people are having success with?

 @Jan Wanot are you going to accept pete into the group WA REI? Ready set... Go.

Albert Bui, Lender in CA (#345453), WA (#345453), TX (#345453), and TN (#345453)
949-514-5106

@Pete Mathias  

I Whoslale a handful of Multifamilies in the spokane market. Usually 2-10 units.  If your are interested pm me. I also work closeluy with the biggest Brookrage for Comercial properties in Spokane and can connect you with thw broker/Partners if you are serious about some Multifamily. We are seeing a shortage of supply here as well. 

@Pete Mathias Besides the Tacoma area, you could look further south like Dupont (near JBLM) or communities in Kitsap county around the naval base(s). I personally like Mason county for buy/holds because my partner grew up there and is very familiar with the area. We currently have 5 units there ... it's a landlord's paradise and there is currently a shortage of rentals.

I know @Brandon Turner acquires buy/holds in Grays Harbor co.

@Pete Mathias lots of success in Everett. I suggest 4plex in North everett for 500-600k.

@Dan G. Awesome, thanks!  I'll reach out separately with you to connect.

@Ruth Bayang Thanks for more great recommendations.  Are you buying SFRs or MFRs in Mason County?  Having a local contact would definitely give you an advantage.  Wife and I moved to the PNW not quite two years ago, so we don't have those local tried-and-true connections to capitalize, unfortunately.

I understand Seattle is more tenant-friendly than landlord-friendly; does this change drastically as you get away from Seattle/King County?  I'll admit my knowledge is lacking as to how much the landlord/tenant laws change per city or county within a state.

Thanks.

@Grant Fosheim Thanks, I was wondering if/when Everett might come up!  Do you manage your own properties up there, or use a PM?

What kind of cashflow (after PITI + all other expenses) should I be reasonably expecting? Listening to the podcasts and talking to others, it's all over the map...

@Pete Mathias I started off managing my own and have since expanded into getting my license and managing for others. Cash flow is all over the map because it depends so much on condition of property and repair budget associated with that. You’d be lucky to get $1,000/mo with a Fourplex and outsourced mgmt in this market. Conversely, everett had lots of appreciation potential unlike a Yakima or Lakewood that would cash flow better.

MFR in Tacoma is really competitive right now as there are so many people thinking the same thing as you right now. But you can still find great deals out there if you look hard enough. The area has a lot more upside potential than some of the cities to the north, in my opinion at least!

Originally posted by @Albert Bui :
Originally posted by @Seth Borman:

There are a half a dozen large apartment complexes around Lakewood, from 10-56 units.

 Those are great but its probably all under the 5 (CA talk) or I5 (WA lingo) and extremely high maintenance for his first deal unless he's up for that challenge.

I know investors who do well down there as well, but just not sure if its a first deal type of thing.

 We've got two apartment buildings in Lakewood. One is pretty easy, the other is a pain in the ***, but one is from 1977 and the other from 1928. One was built as an apartment, the other was not.

With the right PM a newer apartment building shouldn't be too hard.

PM me your email address and I'll send you our wholesale deals as they become available. We continuously prospect multi-fam properties for investors. 

There's a helluva deal in Everett currently on MLS

Multi lot property with 13 units total for $750k. I think it's 5 studios and 10 - 1 beds. Obviously needs some work as reflected in price. But in the location it is in Everett a studio should rent for about $800 in mediocre condition, 1 bedrooms about a grand.

If you search redfin you'll find it easily.

Originally posted by @Pete Mathias :
@Ruth Bayang Thanks for more great recommendations.  Are you buying SFRs or MFRs in Mason County? 

Hi Pete. Yes, I have one SFR and one fourplex in Mason co. Currently looking into build a fourplex next to the one we currently own.

Hi Pete,

Like everyone else said Everett is a pretty solid market for Multi family investments. I I'm a broker who lives in DT North Everett and have been watching the growth. There a lot of potential. Let me know if you have any particular about areas! 

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