Investing Sultan WA is a good idea?

Question

Hello Folks,

I am a new bee and first time posting here. We are living near snohomish area. I’ve seen couple of multi family properties in sultan. Can anyone share some insights of this location and any experience.

Dave Skow · Answer

1) watch the  flood areas

2) if needing to use  financing - make sure you are  aware of the down payment and  loan  program  requirements   ( eg.  a  4 plex  would require a larger  down payment than a  SFR or  Duplex)

3)  Sultans fairly long   distance  from most  work centers   so you  would likely  get  local renters to the  area  and  not  a high monthly amount

Haley Anderson · Answer

@Althafuddin Shaik hello and welcome! What are your investment goals? Are you looking to buy a straight investment property or are you looking to house hack? Sultan is a cute, quiet town (population 5,000+ compared to Snohomish's population of 10,000+). As populations increase in cities like Snohomish, Lake Stevens, and Monroe, more and more people will be moving out to cities like Sultan, Granite Falls, and Arlington, thus increasing property value in those cities. The next investment property I purchase will likely be in one of those "further out" cities because of the anticipated appreciation in those areas, but not so much for the cash on cash return. LONG TERM BUY AND HOLD (Multi Family): There are 4 multi family properties available in Sultan right now - two duplexes, one 5 unit, one 7 unit. Depending on your budget and financing the numbers for cash on cash return and appreciation vary.

LONG TERM BUY AND HOLD (Single Family):Before taxes, insurance, cap ex, maintenance, and utilities long term buy and hold rentals bring in $2,500 - $3,000/month (on average) in Sultan for depending on number of beds/baths.

SHORT TERM RENTALS (Single Family):As Mike said, places by the river tend to do best for short term rentals. For STRs in Sultan, you're likely to get $100 - $300/night depending on location, how "guest friendly" the property is, and time of year. Most rentals currently on AirBnB/VRBO are closer to $150/night (conservatively). Using $150 as your nightly rate with 50% - 75% occupancy you're looking at  $2,250 - $3,375 per month in STR income before mortgage, utilities, taxes, cleaning fees, etc. It's important to note that STR income can be more volatile than long term income.

*I've lived in Snohomish my whole life (20ish minutes away from Sultan).

Investing Sultan WA is a good idea?

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