Puget Sound - First Purchase (short term rental vs SFR vs duplex)

[Casey Kernan]

I would like to make that first move and purchase a property.  I'm working towards preapproval and have been following the market here in the Puget Sound for a few years now and prices have certainly climbed.  I am hoping to make that first move into real estate and with this climate (raising rates, prices, competition, etc) I have some hesitancy.

Currently living in Bremerton/Silverdale (Kitsap Peninsula) with multiple navy bases, hospital, college and short ferry to downtown Seattle. I'm starting to see some price reductions finally. I have also been looking at areas outside Olympic National Park up in Port Angeles, both places you can still find some decent sub 400k homes 3b homes. I have considered both STR/Airbnb (airdna reports >$3k revenue monthly in Port Angeles -? how accurate this is) vs a long term tenant situation in a SFR or duplex. Using some cash flow calculators, the homes in Bremerton don't cash flow as well as STR but do have more potential for appreciation....with these crazy prices in Puget Sound I do think about out of state investment too...hmmmm

What type of property was your first purchase and would you have done it different?

[Sherief Elbassuoni]

@Casey Kernan, Bremerton is a pretty strong market because of the naval base. Vacancy is typically low there as well because of the high and consistent demand from the naval.

Even if STR is grossing $3K, the net may be way less. If you do not manage yourself, some STR management companies charge 25%-35%. You also need to take into consideration all the other fees like cleaning fees and if this is part of the management % or not