Hey Spokane Investors!
My name is Sean and I wanted to introduce myself to you. I currently live in Boise, Idaho but have been looking to invest in Spokane and the surrounding area. I was born and raised in Spokane and am currently looking to network a little more. When covid-19 restrictions go away I would love to come up for some meet-ups. I do have some strong contacts in the area due to living in the community for a long time and would love to help others out if they need some connections.
Enough about me. Everyone knows inventory is tight right now, but has anyone found success or traction in some of the outskirts cities? or even the historically "less desirable" (not intended to be insulting) neighborhoods due to the high demand?
(Example cities: Deer Park, Cheney, Chewelah, Medical Lake)
(Example neighborhoods: Hilliard, Nevada Lidgerwood, Otis Orchards)
Hi @Sean Thompson ! Builders saw this coming and have staked claim to the outlier cities beginning a few years ago. Deer Park and the West Plains are being developed rapidly. They're still not quite as popular as Spokane due to being more rural, but still a lot of activity, rising prices, and low inventory. Hillyard and Lidgerwood are in high demand right now for both investors and owner/occupied, Otis Orchards less so.
There is not an area of or around Spokane that is a hidden unknown gem of opportunity anymore, as it was three to five years ago and beyond. There are some pockets around town that were or are still not desirable neighborhoods, high crime etc, that are being rehabilitated where some general investment opportunity lies. That all being said, opportunity is everywhere if you look and work for it. Figure out your investment plan and then pursue it, you'll find plenty.
Sean - thanks for the post ..if you will be needing financing for your investment plans ....make sure you have a WA based lender lined up and get yourself pre approved before you begin house hunting
I'm in a similar boat just getting started out in Spokane and looking forward to post-Covid networking in the area.
I just purchased my first property here in the GU district and somewhat lucked into the off market deal. You mention having some strong contacts here, I'd recommend putting the word out about what you are trying to do with some of those contacts and see if you might be able to luck into a deal through that network.
Speaking of which, what is your goal and what type of property are you looking for?
Medical Lake - I bought a 12-plex here for dirt cheap. I would consider expanding my inventory if I find more opportunities, but I haven't seen any yet.
Cheney - I'd be happy to invest here, but generally want a 1% cap rate premium over neighborhoods like south hill. Haven't seen that in 2020. In 2018/2019 there were some good deals. Deer Park is also in this category.
Hillyard - This is where my family grew up so I have an affinity for the neighborhood, but it was the first neighborhood I sold out of. The tenants are tougher, the neighborhood is tougher, and the prices aren't much cheaper. Don't know about Nevada / Otis.
Troy - what sort of deal did you get? I'm entering into Logan with an 8-plex and 9 units across three parcels, would be curious to hear your experience.
@Jonathan McKay it is a single family rental that I am working through the BRRRR process with. Still working through the rehab process, but should be on schedule to attract students for the 21-22 school year. Long story short, still building that experience portion!
@Troy Cosentino Congrats on the property! That is a really good idea I will definitely will put the word out. My goal is to buy 5 properties this year, and am looking at buying SFR and applying the BRRRR process much like yourself. If you don't mind I would like to pick your brain to see how the process went with your rental? I will PM you if that works.
@Jonathan McKay Thank you for sharing your thoughts, Good luck with your new properties.
@Sean Thompson Thank you! And yeah definitely PM me, I'd be happy to chat. I love the goal, you're making me think I need to be more ambitious 😅
@sean thompson & @troy consentino I am also starting to invest in local spokane are. I would love to get in on the chat about the BRRRR experience in spokane.
Hey @Sean Thompson . My take on this is that although the quantity of deals might be fewer in the Spokane outskirts relative to the heart of the city, you might have less investor competition because investors might not want to work a deal that is an hour away. That said, we recently funded a deal in Medical Lake. So the deals certainly exist in the areas outside of the City of Spokane.