Is anyone in the Seattle area?

Question

Hey guys! I’m brand new to real estate. I don’t know how close or probable I’d be able to buy my first multi family property given my current circumstances, however, I heard Seattle’s demand for rentals right now are very high. Would anyone know if the demand is just has high in the greater Seattle area? Tacoma for example? The properties down there would be much easier to get into because they can be as low as a third of the price of Seattle properties, but if they’re not filling up like Seattle, it might not be worth it.

Michael Haas · Answer

@Alex Palladino Pockets will always be more or less desirable, but you can count on reasonably strong rental demand and good occupancy rates anywhere between Tacoma and Everett. Seattle has a lot of single families w/ ADU's, but Multi's in the city tend to have pretty low returns and high prices. For true multi families, both Everett and Tacoma would be great places to look!

The first step is often to get your pre-approval nailed down to see what you can afford - that will definitely help you determine which neighborhoods would make sense to look in.

Aaron Nelson · Answer

@Alex Palladino - Welcome to BP! Demand for rentals in Tacoma continues to be high as there are several things driving the population growth. My wife and I just leased a studio in a triplex that we own in about 1.5 weeks and ended up pushing rents about $75/mo there compared to the prior year. There is still a shortage of housing in the area.

Marc Estepa · Answer

@Josh Vlach, thanks! I feel like I’m drinking from a fire hose. I just found BP about 2 months ago and there’s so much information, I feel overwhelmed! I’m listening to podcast after podcast, watched a webinar today and trying to make sense of everything and write everything down step by step - Barney style. I was searching for homes with an ADU or basement and noticed they all get scooped up quick. Anyway, I’m super eager to learn from everybody and happy to be here! Hopefully when CoVID does down, we can do meetups again!

Josh Vlach · Answer

@Marc Estepa Welcome back to the area!

@Alex Palladino Think about your vision long term. Any of the above options generate money. Consider what matters most in a year, two years, etc. A single family with an ADU, a duplex, and a fourplex all can generate money respectively. What do you want to live in? What kind of property do you want to manage? These questions unlock your answers.

Marc Estepa · Answer

Following! I’m just moving to the area again after being stationed elsewhere for a couple of years - but looking at it with a completely different set of eyes. Just found BP about 2 months ago. It’s basically an addiction and obsession right now. Anyway, good luck to you. I‘m right there with you, just trying to take all this education and build a proper plan.

Brendan H. · Answer

@Alex Palladino haha I’m in the same boat... my wife would never sign off on roommates. Our kiddos would likely drive any roomies insane anyway! :) Yes then, definitely recommend a small multifam. 2 - 4 units as you can still get the best interest rates and buy as a primary residence.

If you live in it for at least two years, then repeat the process, you’ll have multiple properties before you know it. By living in it for 2 of 5 years, you leave yourself the option of avoiding taxes upon sale (if you don’t want to mess with 1031 exchanges).

If you bought a 4-plex every two years as a newly married couple you’d be well on your way to building some long term wealth!

Alex Palladino · Answer

@Matthew Konsmo thank you for that little boost of confidence! Everett seems to be a great place to check out so I will do so. Thank you for your help!

Alex Palladino · Answer

@Michael Haas great recommendation for the pre approval first and for most, I will also check out the Everett area. Thank you for your help!

Alex Palladino · Answer

@Morgan Jones that is great to hear, thank you so much!

Alex Palladino · Answer

@Aaron Nelson that’s amazing to hear! Listening to the rapid growth of Seattle area, it will most likely continue which will be great for the market! Thank you so much for this information!

Is anyone in the Seattle area?

Is anyone in the Seattle area?

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