BRRR or other opportunities in or near Seattle?

Question

Hi there,

I've been a Bigger Pockets lurker off and on for about a year. I am interested in getting my foot in the door with my first BRRR. I have access to capital, but the market in Seattle is so expensive that I haven't found an opportunity that doesn't have a barrier of entry that I am uncomfortable with. Also, I have a full time job! I am an architectural designer pursuing licensure, but my firm doesn't do much residential, so I am not a residential remodel expert. I would like to learn more and eventually supplement my architecture income with a BRRR income stream, but I am looking to learn and find opportunities to invest. Any tips or leads are greatly appreciated! Thanks.

-Molly

Michael Haas · Answer

Congrats Molly- deciding to take action is the first step! There are lots of options for early-stage investors, even in the Seattle market- the key is to figure out what your competitive advantage is and exploit it. Our BRRRR advantage has been access to cheap labor, cheap capital, and being creative with our property layouts and rental arrangements.

A couple questions s for you: do you have enough capital to offer cash on non-Financeable properties? Do you currently own your primary residence and any other properties? Would you consider moving into this new BRRRR property as well?

House hacking your BRRRR can be a great tool to get you started, and the upside is even greater if you have cash or private money for the really hairy properties.

Aaron Nelson · Answer

Hi @Molly Taylor! Welcome to BP! My wife and I have BRRRR'd properties and own multifamily rentals in Pierce County. South King and Pierce are undergoing a lot of gentrification as people are priced out of Seattle and move South for affordability. Definitely consider talking with someone familiar with these areas as they are much more affordable than Seattle.

Dave Fulton · Answer

Maybe check out some of the outlying areas for value properties? Tacoma, Bremerton, Everett, etc? Lower barriers to entry if you find an area you like.

Whitney Hutten · Answer

@Molly Taylor Congrats! I agree...I work with a few investors in that area... Seattle is a tough market to get started in due to the speed of the transaction, the capital required, and the ability to get the property to cashflow well to qualify for the refinance to get your BRRRR money out. Hence why I see quite a few people go out of market to invest.

Do get qualified for lending now for your "carry-out" refinance loan. You don't want to get to the end of the project and discover you don't qualify for the loan terms you were expecting (though there are always work arounds). Also, get with a great realtor and PM in the area to survey the market and see what areas you can launch your strategy in.

You may find that going out of area is a good move since your goal is the create cashflow now. Check out David Greene's book on Long Distance Real Estate Investing.

PM me with Q's.

Robert Freeborn · Answer

@Molly Taylor

Hi Molly! Welcome to investing and BP.

Seattle is a great market, but it is also a hard market. When first getting started, it might be best to look north or south. These areas are seeing a lot of gentrification and growth as people expand out from Seattle. That means lots of opportunities for investors. (I also think it’s easier to find a brrrr in these areas).

I’d be happy to talk to you about these areas if you want, and I’m sure some of the other agents who already posted would be happy to help you as well.

Dave Skow · Answer

Molly - if you plan to use a loan to acquire a property - get pre approved .... if you plan to use your capital to acquire it - no need to get pre approved

BRRR or other opportunities in or near Seattle?

BRRR or other opportunities in or near Seattle?

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