500k in Shoreline, West Seattle, Or Rainier Valley

Seattle, Washington
Seattle Real Estate Forum
7yFollow

500k in Shoreline, West Seattle, Or Rainier Valley

David Spencer
Member since 2018 · 7 posts · 5 votes

Hi There,

I am looking to by my first house. I will likely live there for a few years, and then keep it as a rental property. At the moment my price range is around 500k. After checking out houses all over Seattle I've found houses that interest me in Shoreline, West Seattle, and Rainier Valley.

I am in my late 20's and work in Fremont, but work location isn't a huge factor for me since I only commute a couple days a week. Ideally I will find a place that will allow me to have a roommate to help pay the mortgage. I also have a dog, so a small fenced yard is a requirement.

In terms of looking at the locations as a rental investment, what area would you pick? Shoreline has the link light rail coming in a few years, but Shoreline is very north, doesn't feel like being in a city. West Seattle is also getting light rail, but that is more than a decade away. Rainier valley has light rail, but the neighborhoods are a bit of an eye sore.

Obviously the house/neighborhood would make a big difference, but based on the locations alone, do you guys have any recommendations/advice?

Thanks!

4Reply
28 views

Most Popular Reply

Ashley Abramson
Wholesaler · Renton, WA · Member since 2016 · 93 posts · 30 votes
7y

I would pick West Seattle :)

2Reply
See this reply in the discussion

15 Replies

Jump to latestLatest
  • Account Closed
    Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
    7y
    Originally posted by @David Spencer:

    Hi There,

    I am looking to by my first house. I will likely live there for a few years, and then keep it as a rental property. At the moment my price range is around 500k. After checking out houses all over Seattle I've found houses that interest me in Shoreline, West Seattle, and Rainier Valley.

    I am in my late 20's and work in Fremont, but work location isn't a huge factor for me since I only commute a couple days a week. Ideally I will find a place that will allow me to have a roommate to help pay the mortgage. I also have a dog, so a small fenced yard is a requirement.

    In terms of looking at the locations as a rental investment, what area would you pick? Shoreline has the link light rail coming in a few years, but Shoreline is very north, doesn't feel like being in a city. West Seattle is also getting light rail, but that is more than a decade away. Rainier valley has light rail, but the neighborhoods are a bit of an eye sore.

    Obviously the house/neighborhood would make a big difference, but based on the locations alone, do you guys have any recommendations/advice?

    Thanks!

     I've done flips in West Seattle, Shoreline and Rainier Valley (before the light rail went in). Personally the gunshots and homeless people in Rainier Valley reminded me of the Bar scene from Start Wars. Shots go off and people look the other direction.

    West Seattle is a big area. I'd stay away from White Center. I'd focus on Fauntleroy and the Admiral district. Anything near Delridge is not a good choice. I'd stay West of 35th SW and the closer to the water the better.

    Shoreline is probably a good bet. The areas there and Edmonds tend to be family friendly. The commute to Fremont will be a bit of a bear in rush hour in the rain but with the Viaduct being torn down you lose any advantage West Seattle had for a commute. There are no "good" traffic solutions in Seattle.

    Magnolia & Upper Queen Anne are by far the best options but way over priced right now.

    1Reply
  • Jake Alger
    Real Estate Broker · Bellevue, WA · Member since 2017 · 172 posts · 107 votes
    7y

    Hi David,

    I’m a local broker and would be happy to chat about neighborhoods with you. Given your target price range, you’ll have some options. Being just on the edge where expansion is happening will bode the best investment opportunity in the long term. Have you thought about anything on the Eastside?

    Feel free to reach out. 

    - Jake 

    1Reply
  • Adrian Chu
    Real Estate Broker · Seattle, WA · Member since 2014 · 1k+ posts · 427 votes
    7y

    Your thoughts are accurate. Keep in mind that every neighborhood has specific nuances on a block-by-block basis. There are also different variables involved and in this case: lifestyle choice and also investment potential.  Born and raised here, I have a historic context of different neighborhoods (and biases) but that does not impact my selection process as an investor and builder.  Would be happy to chat more.

    0Reply
  • Jenna Lee
    Rental Property Investor · Seattle, WA · Member since 2018 · 66 posts · 21 votes
    7y

    It really all depends on whats important to you.

    Whenever I purchased my primary residences, I always looked at it as an investment and they have always been a good one, but I had other things that weighed in when I purchased them... 

    When I look at investment properties I look at cashflow and its appreciation potential and make my decision based on that, but with primary residences its a bit different.

    My last house that I purchased, I could have bought a larger home with a lot more rooms, in less expensive area and had my mortgage paid for that way, but I chose to purchase in more trendy/expensive area with less room. The house that I purchased was so small having roommates was not an option, so I paid a lot per month to maintain the house, but I really enjoyed living in the area with lots of amenities near by. In the end, it was still a good investment because the house appreciated a lot in value and I ended up selling it for a huge profit .... But I could have saved alot more on monthly payment if I had chosen to live in a bigger house at a different location. 

    If, gaining most bang for your buck is the most important to you, I would try to purchase a home with more rooms (More rooms, more rent) and I would also do some market research to see what the rooms are going for in the areas of interest. (I would think West Seattle would be higher than Shoreline) Shoreline is known to have great school district, so you will probably attract more families... If this is the type of demographic that you are looking to rent to in future, maybe that would be a good place for you...

    1Reply
  • Brian Hughes
    Seattle, WA · Member since 2017 · 275 posts · 223 votes
    7y

    Some of the neighborhood assessments given above may be a little dated.   Yes, 15 or 20 years ago I would never have considered it and today Rainier valley/beach is one of the last up-and-coming areas of seattle but has plenty of decent homes in respectable neighborhoods at some of the best prices in seattle.    South beacon hill, very nearby and with some comparable neighborhoods/homes/pricing, was recently determined to have one of the LOWEST property crime rates of any area of the city.   (you can dig up the seattle times article,  I'm too lazy)

    FWIW I am in the process of closing on a new primary residence for myself in upper Rainier Beach  (2300sf 2 story mid century,  $430k, mid block on residential street, needs a little spit and polish, but totally habitable).   I've met several of the neighbors,  and several of them are professional types and most have only been there for a few years;  others have been there decades.   The home is walking distance to groceries, dining,  and light rail,   and five minutes from I-5 via Ryan way.     

    There are still a few pockets I would not want to buy in,  but 90% of RB/RV is worth considering on a $500K budget.

    1Reply
  • David Spencer
    OP
    Member since 2018 · 7 posts · 5 votes
    7y

    Thanks for the responses everyone. I also spoke with some neighbors in RB/RV and they said the same thing.

    Regarding shoreline getting a light rail station in 6 years or so. If I get a house within walking range of the station would you expect an increase in the house's value once the station opens? 

    1Reply
  • Jake Alger
    Real Estate Broker · Bellevue, WA · Member since 2017 · 172 posts · 107 votes
    7y

    Hi David,

    As the transit systems hit more areas around Seattle, those areas will likely see growth.  Given our geographic layout, with the mountains to the East and the Puget Sound to the West, expansion can only go North or South.  We've seen huge appreciation the last few years in areas like Bothell, Kenmore, Kent and Renton.  Those areas are close enough for average commute times while remaining affordable for most families.

    Add Shoreline and the transit system and they could outpace other areas as there's room for growth.  However, I wouldn't put all your eggs in one basket so to speak.  Banking solely on the transit system for appreciation or rentability might not be a wise move.  Looking at an area for what's already there would be my first move.  Projects, in particular transit systems and roads (think the Alaskan Way Tunnel), always get delayed.  If the expectation is 6 years, it'll probably take 10 and cost twice as much.  That seems to be the way Seattle runs budgets and timelines :)

    If that were to happen, you may need to hold longer to achieve your goal.

    - Jake

    1Reply
  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    7y

    12/5/2018

    David - out of the 3 options you mention  and assuming the properties are relatively similar - I think that w seattle  would have the higher  future  appeal / resale  possibility  ….

    if you need a loan when you buy - and if you haven't already been approved by a lender for the purchase - make sure  you do this before looking further

    thanks

    1Reply
  • Ashley Abramson
    Wholesaler · Renton, WA · Member since 2016 · 93 posts · 30 votes
    7y

    I would pick West Seattle :)

    2Reply
  • Jared Fritz
    Seattle, WA · Member since 2017 · 2 posts · 1 vote
    7y

    Hey David!

    I'm in a pretty similar situation, but a little ahead of you. Excited to be closing on my first house in a few weeks. I went with South Seattle because you can get the most house for the money. Don't limit yourself to Rainier Valley though! There are lots of good buys in Beacon Hill.

    I'm just a beginner, but I'm happy to discuss my search more!

    1Reply
  • Christian Decker
    Real Estate Agent · Seattle WA · Member since 2018 · 22 posts · 5 votes
    7y

    Hi David

    I am in a very similar situation as you are and actually just purchased a home in Shoreline for around that price point. I would recommend being careful and looking at zoning before you purchase however, since all the "walking distance" properties to the light rail have recently been zoned high density multi Family (Officially MUR-35, MUR-45 and MUR 70) We purchased in the MUR 45 zone with the intention of developing it as well. However this area is fairly competitive. If you are looking for areas that can be rented out I would recommend staying near the light rail stations but out of the MUR zoning, as you will be competing with developers for those. Let me know if this helps or if you want to chat new invester to new investor :)

    Christian

    1Reply
  • Albert Bui
    Lender · Bellevue WA & Orange County, CA · Member since 2013 · 2k+ posts · 1k+ votes
    3y
    Quote from @David Spencer:

    Hi There,

    I am looking to by my first house. I will likely live there for a few years, and then keep it as a rental property. At the moment my price range is around 500k. After checking out houses all over Seattle I've found houses that interest me in Shoreline, West Seattle, and Rainier Valley.

    I am in my late 20's and work in Fremont, but work location isn't a huge factor for me since I only commute a couple days a week. Ideally I will find a place that will allow me to have a roommate to help pay the mortgage. I also have a dog, so a small fenced yard is a requirement.

    In terms of looking at the locations as a rental investment, what area would you pick? Shoreline has the link light rail coming in a few years, but Shoreline is very north, doesn't feel like being in a city. West Seattle is also getting light rail, but that is more than a decade away. Rainier valley has light rail, but the neighborhoods are a bit of an eye sore.

    Obviously the house/neighborhood would make a big difference, but based on the locations alone, do you guys have any recommendations/advice?

    Thanks!

    Id say to find a location that your heart and head can agree upon as one day it may no longer be your primary residence. The potential in west seattle is higher than shoreline because of seattle proper which gives you pre-approved development plans (ADU's, LR, NR, RSL zonings) and value from a real estate play and appreciation is more directly correlated with the employment markets in the proper city area however rainer valley has great location but it has its stigma. If you were to look at rainier valley and its proximity to the water and lake washington you'd think they value would be higher but its traditionally not. In the long term I think there is merit to rainer valley but short term its tougher.

    Shoreline has some ADU allowance but only for owner occupied I believe but you can also get a bit more for your money over there in terms of bedrooms for the $$$.

    The folks I've worked with tend to like split level homes that can be separated to create that attached ADU or AADU unit below and sufficiently add a DADU or detached ADU in the back (min lot required 3200 sqft in city of seattle). This doesnt mean they go into it day 1 with that intent but atleast you know you have potential gold lining up on your runway if you so chose to take that plan of action.

    The reality is these folks will buy the split level homes and house hack them, rent out rooms, separate lower level for separate rental unit, add bedrooms where feasible, and implement the first stage of the buying and house hacking journey.

    The stage 2 will be that DADU in the back which takes a bit more capital and planning to execute.

    Hope that helps 

    @Matthew Kwan

    @Carlos Valencia

    0Reply
  • Albert Bui
    Lender · Bellevue WA & Orange County, CA · Member since 2013 · 2k+ posts · 1k+ votes
    3y
    Quote from @Ashley Abramson:

    I would pick West Seattle :)


     me too Ashley but I am a bit biased

    0Reply
  • Ran Iarovich
    Real Estate Agent · WA · Member since 2021 · 254 posts · 173 votes
    3y

    As mentioned by the forum - I would also highly recommend Shoreline based around its great appreciation potential and existing safety/amenity value over West Seattle and Rainer Valley. As it is still developing, it would be fair to say that rental rates are going to keep increasing depending on how long you own the property. On top of that, I checked the current prices considering your budget in mind and Shoreline has the most inventory and options available out of Rainier, West Seattle, and Beacon Hill (view below). 

    0Reply
  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    3y

    @David Spencer- thanks ...in order of preference   1)  w  seattle   2)  shorleine   3) R valley ........commute is best  with shoreline  property but since you only need to do this  a couple of times - this isnt  that  imperitive .....future rental income  is solid in  both W Seattle and  Shoreline ...resale  value IMO is best in W seattle .   Lifestyle  is  best  with  W Seattle as  its close to the  sound / lincon park / alki / the city /   the  ferry   etc ..... many  younger  people  have  been  buying in w seattle for yrs  so the  demographic  is youngish ...good luck 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free