I think both Kirkland and Bothell would both have good future outlook. Kirkland being closer to Bellevue and with a waterfront will almost always be more expensive. Bothell is growing pretty quickly. All the new development in DT Bothell and Totem Lake would help with demand and appreciation as well in that area.
Yes, I agree DT would have much better appreciation, the problem is that part might already be priced in, which makes the downtown rental properties cash flow very negative
I've been working with a couple clients looking to find a property to purchase then rent in downtown Seattle. Honestly, its an effort in futility IMHO. I would shoot for bothell, or North Seattle. I've had a couple clients think outside of the box and look to areas where you'd have a consistent flow of renters Everett (boeing) bremerton (naval base) South tacoma (JBLM).
Can also take you through the BRRR strategy to get something below market and rehab it. Would be a good way to get into the Seattle area and maybe pencil out. Feel free to DM me.
I am planing to hold more than 2 years, probably 3 years
I don't know these neighborhoods, so can't comment on which would likely to be better, and would be skeptical of anyone claiming they can predict this in a 2-3 yr time period, but I will say that this is a really short holding period. So short, in fact, that I'd be looking at the deal more like a flipper than a buy and hold investor, because to me this would be more of a slow flip than a buy and hold. A flipper would probably go wherever they could find the best deal and do the max forced appreciation.
There is a huge condo inventory coming live in Seattle area this year..On top of that condos are poor investments in general. You will run into assessments, HOA increases, unforeseen rental cap, and during the downturn condos are the first one get hit and last one to recover.