Looking to Invest in Spokane

9 Replies

Hello Washington!

I am a (somewhat new) investor interested in the Spokane market.  I currently live Portland and would like to build a portfolio of buy and hold properties.  I do own a rental property in Sandpoint, ID that was previously a primary residence, so I'm fairly familiar with the area but not necessarily the specific neighborhoods.

 If you have any thoughts on the following, I'd greatly appreciate the advice.

- What neighborhoods are good for SFH investing on a budget of $100k-$120k?

- I've also been considering multifamily. What's a typical price point for a B-class duplex?

- Does anyone recommend a good contractor, especially one who works with out-of-town investors?

- Do you have any recommendations for property management companies?

Thank you!

Hi Stacey... Thanks for posting.  Are you planning on staying in Portland while investing in Spokane?  I work accross the northwest including Portland however I am based out of a Spokane office.  I would be happy to answer any questions if you give me a call or email.   I also work in an office with a reputable brokerage, a property management company as well as a construction company.  Contractors are the hardest to find over here as like Portland.  However if you get going on a project, I'm sure you will be able to find some.  Just not the most timely.  Shadle area is great for the 100 - 200 range for a rental property or something like that.  There are also some great spots in the Spokane Valley.  Anyways, feel free to reach out anytime.

Thanks,

Rance Brown

Inland Capital

Hey Stacey,

I've been investing in the Spokane area full time since 2007 and am primarily focused on finding wholesale deals for investors at the moment. I'd be happy to help you out with any questions and/or point you in the right direction. 

- What neighborhoods are good for SFH investing on a budget of $100k-$120k?

I agree with Rance that Shadle is a good area for this price point. I would continue to pay particular attention to the neighborhood you buy in rather than the house because Spokane can have some rough areas that you'll want to stay away from as an out of town landlord.

- I've also been considering multifamily. What's a typical price point for a B-class duplex?

Multifamily is a very competitive subsect of Spokane at the moment. Most turn-key properties are selling with a 6% cap, but if you're willing to do an out of state rehab you should still be able to realize a 10% cap or better, after construction. A 100-120k multifamily property will certainly need to be a fixer that would require a 30k+ rehab. 

- Does anyone recommend a good contractor, especially one who works with out-of-town investors?

Contracting is also very competitive at the moment. If you find a good one, hold on tight and don't tell anyone about them. Also keep in mind that generally you get what you pay for. I wouldn't suggest taking the cheapest bid while managing the project from afar. 

- Do you have any recommendations for property management companies?

Someone posted recently about their property management search within Spokane and they had some good incite. I manage my own and don't have any recommendations at the moment. 

Hope that helps. Good luck!

~ Happy Hunting

@Rance Brown , thank you for your response. I plan to stay in Portland for now but my long term goal is to return to Sandpoint. Like so many people on BP, I am shifting my focus from the stock market to rental property investing to help me get there sooner. I really appreciate the suggestion on Shadle and Spokane Valley.  The area has changes since I lived there 7 years ago. I do have some more questions about the property management and construction company.  I'll PM you with more questions.  

Thanks again, Stacey

@Jacob Evans

Hey Jacob, I really appreciate all the advice you shared.  I'll dig in on finding both a contractor and a solid PM company.  

I've been researching average rents in the area but mainly via the internet but I don't yet have a good feel for average rents by neighborhood class.  Hypothetically, what size multi-family could I buy at the $100k-$120k amount above and how much rent per unit? 

Are you primarily wholesaling properties in B-class or C-class neighborhoods (if one is weighted more than the other)?

Thanks! Stacey

@Stacey Marsh I think it would be tough to get into a clean, rent ready Duplex for 120k. Most are selling in the 130k+ range. If it's clean and rent ready I would expect a 130k duplex to conservatively rent for roughly $800 per side.

We target any and all properties with our wholesaling efforts and have structured a lot of creative financing deals lately, which could allow you to leverage your cash. 

Man I would kill to have a buy a duplex for 130k and get 1600 rent out of the deal!!!

@stacey marsh, good day, yes the Spokane market has not changed drastically, continue to see cap rates from 6-9%, again depending on the broker/investor. Let me know if you are still in the market. Another great area that is rapidly growing is the tri-cities. I am a part of the tri-cities mls as well.

Hey @Stacey Marsh,

Hit me up if you'd like to talk shop. I've been investing and wholesaling in Spokane since 07' and would love to find you your next rental property.

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