Investor · Seattle, WA · Member since 2016 · 51 posts · 13 votes
I've been investing in SFRsin Tacoma for buy and holds and am looking into moving in multifamily. I'm looking for someone to bounce a few questions off re the Tacoma market in particular. I've seen someone's name come up a few times in the Tacoma forums but unfortunately can't recall who that is. If anyone knows or has recent experience w/ Tacoma apartments please let me know. Thanks
Olympia, WA · Member since 2016 · 22 posts · 20 votes
9y
I'm interested in Tacoma Multi-Family and would love to hear other investors opinions about the Tacoma market. I currently own a duplex in the central area and am actively seeking to acquire multi-family properties from duplex to small apartment complexes.
I have been seeking units mainly in the Central area (around 6th south), Proctor, and the north end. I still see those as the most attractive areas for a balance of value, rental demand, and appreciation potential. I have looked at a lot of units on the south end, cashflow is decent, but the renter pool and long-term appreciation / demand are less attractive to me.
I'm also really curious what folks think about multi-family in the Hilltop area. A lot of investors are rehabbing places and commanding premium rents and seeing what look to be strong returns via BRRR. With the announcement of a major upper market apartment complex coming in, are they concerned about that approach over the next couple of years?
UPS just announced a new shipping facility with several hundred jobs in Tacoma. That is another plus in the market. I'm targeting middle-income properties with strong cashflow (1% rule as a guide) with one exit plan to be rehabbing up market or preparing for sale to a turnkey/retail investor.
Rental Property Investor · Lake Forest Park, WA · Member since 2015 · 127 posts · 57 votes
9y
Hi Peter! Congrats on your decision to pursue multifamily! My wife and I started investing in the Tacoma and Lakewood markets about a year ago. We began with a 4 plex in the Midland area and just purchased a 12 plex in Tillicum back in January this year. We have learned a lot and I would be glad to share whatever information I can that might help you out. Feel free to PM me if you want but you might find that posting specific questions on the open forums will get you a wider array of responses. But like I said, feel free to shoot me any specific questions you may have.
Real Estate Broker · Tacoma, WA · Member since 2016 · 545 posts · 252 votes
9y
I would like to be apart of this thread because I, too, am going toward Tacoma/pierce/western Washington midsized Multi-Family in the nest 12 to 18 months so Im gonna leave this comment to make myself apart!
Olympia, WA · Member since 2016 · 22 posts · 20 votes
9y
I'm interested in Tacoma Multi-Family and would love to hear other investors opinions about the Tacoma market. I currently own a duplex in the central area and am actively seeking to acquire multi-family properties from duplex to small apartment complexes.
I have been seeking units mainly in the Central area (around 6th south), Proctor, and the north end. I still see those as the most attractive areas for a balance of value, rental demand, and appreciation potential. I have looked at a lot of units on the south end, cashflow is decent, but the renter pool and long-term appreciation / demand are less attractive to me.
I'm also really curious what folks think about multi-family in the Hilltop area. A lot of investors are rehabbing places and commanding premium rents and seeing what look to be strong returns via BRRR. With the announcement of a major upper market apartment complex coming in, are they concerned about that approach over the next couple of years?
UPS just announced a new shipping facility with several hundred jobs in Tacoma. That is another plus in the market. I'm targeting middle-income properties with strong cashflow (1% rule as a guide) with one exit plan to be rehabbing up market or preparing for sale to a turnkey/retail investor.
Real Estate Agent · Seattle, WA · Member since 2016 · 65 posts · 29 votes
9y
Totally agree with what you wrote. Not every property is a deal, but there are definitely some in the Tacoma market that can still cash flow and there is some appreciation on the horizon. I believe more people will be looking to markets like Tacoma as other neighborhoods and cities nearer Seattle continue to grow too expensive.
I haven't explored Hilltop too much, as I'm focusing on Northend, Lakewood,and Central. However, I know there are many flippers interested in this area, and apparently making some returns.
Real Estate Broker · Tacoma, WA · Member since 2016 · 545 posts · 252 votes
9y
@David Sweeney Do you really still see value in the north end? seems awfully pricey, low returns. especially considering what some of the other areas are doing around here.
Real Estate Agent · Seattle, WA · Member since 2016 · 65 posts · 29 votes
9y
Pricey, yes. I'm looking for nice multi-family properties that will be very desirable for renters looking for the best neighborhoods, still close enough to downtown. Might not get the best returns, but there is something to be said for great properties in great neighborhoods. In other words, I'd want to live there!
Residential Real Estate Broker · Tacoma, WA · Member since 2017 · 18 posts · 8 votes
9y
@Steve Abercrombie in my opinion hilltop is a great investment. I'm a realtor and it's become a desirable spot to move to because of its affordability and access to downtown/freeway. I think anyone who was in the hilltop in the 80's and 90's still holds a stigma about it, but my husband and I bought our first duplex there in 2011 and we have never had a shortage of quality renters. (and personally I loved living there!) You just have to know the streets...there are certain blocks to avoid (for now)...but so many young families live there and fabulous businesses are popping up all over hilltop. @Peter Grote I've purchased a duplex and two triplexes in Tacoma...happy to answer any questions.
Residential Real Estate Broker · Seattle, WA · Member since 2016 · 14 posts · 4 votes
9y
Hi Peter,
Tacoma is a great market to jump into for multifamily. There are lots of reposition plays and also quite a few turnkey opportunities.
@James Lusk - I just moved to Bothell in January! Lake Forest Park is a great little city. I have been looking at a number of duplexes in University Place. I'd love to know more about Midland and other surrounding neighborhoods and submarkets.
Investor · Kent, WA · Member since 2015 · 624 posts · 274 votes
9y
I second what @Ruthy Taylor said about Hilltop. I don't have any buy/holds in Hilltop but I did a flip there recently and made a bigger-than-expected profit.
Tacoma, WA · Member since 2017 · 14 posts · 11 votes
9y
I've lived in the Stadium district for the past 13 years and have generally felt division ave split the good neighborhoods from the sketchy ones. Then again, I don't spend any of my time in Hilltop, so take it with a grain of salt.
I am interested to see what the link expansion will do for the area. It will certainly make it easier for those looking to commute on the sounder train.
Investor · Seattle, WA · Member since 2016 · 30 posts · 17 votes
9y
@Peter Grote My husband and I bought a triplex in South Tacoma. We closed on May 26th so we are still rehabbing/waiting for current tenants to vacate. We dont know the specific price we will get from renters. Originally I wasn't looking in South Tacoma, but there weren't any great deals (that I found at least) in the more desireable neighborhoods that didn't need a complete remodel. The triplex we bought was in great shape and only needs minor repairs and upgrades. We have been pleasantly surprised by the neighborhood, and our neighbors say that it's becoming safer and nicer as people flip homes, etc. it's all families and has some nice little parks and is quiet. There is a flip going on right across the street from our house. If your looking for deals, I would check out South Tacoma.
Rental Property Investor · Seattle, WA · Member since 2017 · 383 posts · 248 votes
9y
My partner and I have a duplex on S. M and are working on a triplex around the corner. The cash flow is great, the renters we inherited...not so much. So be sure to budget for vacancies and rehabbing the carpets and paint - get a thorough inspection and if you need suggestions on that let me know.
Lastly, anyone have a GC down there that has some time? That's my current search!
Arbitrator-Mediator · Seattle, WA · Member since 2015 · 10 posts · 2 votes
8y
This discussion thread is dated by about six months and I am sure that the Tacoma Pierce County market has evolved. I need some “reality check” advice about this market. I am looking to invest in my first multi family rental property. I have 300k va or conventional borrowing authority and I am working on an additional 100k.
My current impression: a fourplex in Tacoma/Pierce county is just about out of reach at 400k assuming I get the borrowing authority. Assuming I remain at 300k, my most realistic goal is a duplex or a triplex. Any thoughts, suggestions, criticisms or insights would be greatly appreciated.
Investor · Wichita, KS · Member since 2016 · 133 posts · 63 votes
8y
That's about right Richard. Especially if you use VA as your funds as they will require the property to bee in good/great condition. If you go farther south to out of Tacoma you might be able to get a 4plex for less but not likely.