All Forum Posts by: Zach Schwarzmiller

Cap rates typically range between 6-6.5%, or $70,000 - $90,000 per unit; however, as the other broker you've been speaking with indicated properties in better locations/conditions will go lower and properties in worse locations/conditions higher. I've got a off-market 31 unit that the seller would consider selling for $1,850,000. It's adjacent to the college with Whole Foods going in across the street. Interested?

Troy,

Core Seattle cap rates range between 4.0% - 5.0% typically depending on age, quality, and location. As you move away from the core market, the cap rates do increase. I don't necessarily see a correlation with age as you have indicated, but rather with location (most important) and quality of the asset. Core Tacoma & University Place both have colleges and larger employers driving demand, especially with the rising rents in Seattle forcing renters to move outside Downtown Core Seattle.

I don’t necessarily see the trends you’re referring to by your three sales comparisons. Tacoma to Olympia has a lot of multi-family between that would skew your comparisons; however, there are some transactions that fit within them as well.

A couple months ago I brokered a fractured 46 unit conversion at $35,000 a door in Lakewood, which frankly I hadn’t anticipated trading that high. Only 6 of the units were rentable, the rest ranged from needing light rehab to black mold and studs. This demand price was mainly drawn by the proximity to the JBLM base and the fact that the transaction was completely off-market.

Seattle is a competitive market – with companies like Starbucks, Boeing, Amazon, Microsoft, ect there is a large amount of local money in CRE. Most recently we've also seen a lot of outside investors move in because of how the market has been performing, especially on the multi-family side of things.

I always prefer First American Title & Escrow, there are others who are great as well and others which are not great.

My friend owns rentals in Seattle and uses Integrity Energy Systems, 425-419-4676

Hi Adam,

I also work out of Everett! Fantastic homemade pie?? Yum!

Welcome Dana! I am working on an interesting transaction up in Bellingham right now!

I had this exact same thing happen - I had the church co-sign his lease.

Welcome Geremy! I've never invested in Colorado but what a pretty state! Wish you the best of luck in your endeavours!

Welcome Kimo,

You should try and join our next Snohomish County REI meetup. I went to school at Kings in Shoreline and used to live in Edmonds. Currently trying to buy more land to build small apartments in Shoreline & Edmonds. Love that area!

http://www.meetup.com/SnoCo-Connected-Real-Estate-Investors/events/138912582/

Brandon has great feedback. I know a lot of our tenants in the 26 unit fit criteria as well. Were renting small studio's fairly cheaply so it's easy to keep them full with individuals with lower income.