Washington state rental property investment
I am just starting to look for rental investment properties (condo/town-home/apartments < 300K) in Seattle suburbs of Washington state. Any areas that I look for, nothing is cash flowing. I am considering following amounts as operating expenses for the property:
1. Mortgage (4% interest rate)
2. HOA
3. insurance
4. taxes
5. vacancy rate of 1 month per year
6. CapEx {5000$ per 7 years for paint and replacing cabinets}
7. Repairs (5%)
8. Prop management fees (10%)
Any suggestions with respect to numbers that I am using above (do they look right or are they too conservative)?
Can anyone suggest any areas/locations with properties that cashflow? Just want to take an example from Redfin, run numbers and see if it cashflows.
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- Real Estate Broker
- Cody, WY
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You should seriously consider investing in another market. Check out Podcast #257 with David Greene and consider buying his book where he explains everything you need to do. Instead of buying a $300,000 rental in Washington that doesn't cash flow, you can find a market where you can buy 3-4 decent houses that cash flow $100 - $200 a month.
- Nathan Gesner
