Advice for Seattle newbie looking at Whidbey Island

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Advice for Seattle newbie looking at Whidbey Island

Kimberly Dawn
Homeowner · Seattle, WA · Member since 2015 · 7 posts · 1 vote

Hi my name is Kimberly, and I've just entered the 'interested with enthusiasm growing exponentially' phase of real estate investing. I live on the beach in Magnolia, a smaller community in Seattle, with ridiculous views of Puget Sound, Bainbridge Is and the Olympic Mts. My ideal would be to buy and hold rental properties here in Magnolia, but options are very few and prices are out of my range...for now.

So I am looking to more outlying areas, specifically Whidbey Is, where my brother has just purchased 2 properties that he is deciding whether to long term, or vacation rent. Prices on Whidbey are easily within my means, even with homes that are in solid condition that may only need some updating. I have been researching rental prices and it sounds like there is some passive income to be made here.

Does anyone have any experience with the surrounding island areas? And what is the thinking around owner managing properties 40 miles and a ferry boat ride away?

Thanks in advance!

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  • Paul Timmins
    Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
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    @Kimberly Dawn 

    Welcome.

    Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

    Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and all the cash buyers (rehabbers) you will need.

    To find out about an area go to IREM.org search for ARM certified property managers. Call 5 ask them what sides of the city they like/dislike and why. Ask what they see them selling for and what expenses are by category. Ask for market occupancy and rents. Ask if they know anything coming up for sale.

    You can also search narpm.org for the RMP (Residential Management Professional) and MPM (Master Property Manager) certified.

    You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

    Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

    http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

    Good luck

    Paul

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  • Yinan Q.
    Engineering Consultant, Investor · Seattle, WA · Member since 2013 · 213 posts · 61 votes
    11y

    @Kimberly Dawn Welcome to BP!

    I am sure other members in the Seattle area with experience investing in Whidbey island and surrounding area will be able to give your more first hand experience. 

    As for your question regarding self managing properties 40 miles away, I think it is not a big deal if you know what you are doing. There are some BP members invest in out of state and self manage. It really comes down to two things: quality of your tenant and your system.

    I would account PM fees in the analysis so if self management doesn't work out you could turn to plan B and still cash flow. 

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  • Zach Schwarzmiller
    Investor · Snohomish, WA · Member since 2013 · 629 posts · 84 votes
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    Hi @Kimberly Dawn - I personally don't like being more than 2 hours away if it's residential. I'd prefer 3 hours if commercial but there's much more flexibility in the commercial realm. When your headed up there, you'd likely be driving against traffic and you'd have a beautiful ferry ride. Doesn't seem that bad to me!

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  • Scott Babcock
    Seattle, WA · Member since 2015 · 36 posts · 9 votes
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    @Kimberly Dawn I'm in Magnolia, too, and have been researching Whidbey some as well. It seems like around Oak Harbor with its population and Navy base would be good for keeping rental units more filled than vacant. Distressed flips dot the island. You may be covered with an agent but I know a CB agent native to Oak Harbor if you need.

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  • Kimberly Dawn
    OP
    Homeowner · Seattle, WA · Member since 2015 · 7 posts · 1 vote
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    Thanks Scott.  I connected very briefly with a Langley property manager who said that right now she has more renters than houses available for them.  I definitely want to explore local professional input further.  I haven't ventured to Oak Harbor yet, just explored Langley, Clinton and a bit of Freeland.  

    What do you mean by "distressed flips dot the island?" Are you saying there's good potential for flipping, or that it has not been successful for investors who bought hoping to flip?

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  • Scott Babcock
    Seattle, WA · Member since 2015 · 36 posts · 9 votes
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    "Potential" is what I meant to say! :) What makes me cautious about the island would be location and holding time (esp flips) but what you've heard about supply-demand on the south end for rentals sounds very promising. And I really like those areas! When I've run some numbers in the past on properties right in Langley they don't seem to cash flow but I could be off on rents now. 

    I don't know enough about vacation rentals. It seems like potentially a lot of out of pocket if it's not rented most of the year, though maybe some properties can break even at 6 months. I'm going to search BP about that topic. So much info here. Good luck!

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  • Steve K.
    Bellevue, WA · Member since 2014 · 69 posts · 20 votes
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    @Kimberly Dawn   Also check out west Seattle, Burien, or Normandy Park for views.  Up north, try Everett and surrounding area.  Downside for Everett is that traffic is bad coming into Seattle in the morning.  Burien and Normandy Park is usually wide open in terms of traffic.  Good thing about Everett: It has Boeing and a naval station over there.  And it's going through some infrastructure renovation.  

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  • Scott Babcock
    Seattle, WA · Member since 2015 · 36 posts · 9 votes
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    @Steve K. Hey Steve, any idea on Everett growth next 5-10 years? Infrastructure improvements are always good!

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  • Account Closed
    Rental Property Investor · Everett, WA · Member since 2013 · 389 posts · 222 votes
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    @Kimberly Dawn 

    I live in West Seattle and invest in Everett. I manage 16 units that are mine in Everett as well as 4 more for another investor. I do all the landscaping and show the units and it is not bad at all. Throw a ferry ride into that though.....I have had several folks approach me about buying their place on Whidbey Island and I have turned them down as I am not willing to take that extra run across the bay.

    If you are able to outsource maintenance, landscaping and showing the units and just do the book work that could work.

    My two cents.

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  • Scott Babcock
    Seattle, WA · Member since 2015 · 36 posts · 9 votes
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    @Account Closed hi Grant, is your focus mostly SFH or multi in Everett?

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  • Account Closed
    Rental Property Investor · Everett, WA · Member since 2013 · 389 posts · 222 votes
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    @Scott Babcock  The city has a growth management plan to increase the city's population by 60,000 residents by 2035. A bit (actually very) aggressive in my opinion but I think it will see an increase of at least 20-30k by then.

    There are too many projects to even list happening in Everett right now and they are all high end luxury type housing which raises the value of surrounding areas. I am a big supporter of invest in Everett though so my opinion may be a bit skewed ; )

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  • Account Closed
    Rental Property Investor · Everett, WA · Member since 2013 · 389 posts · 222 votes
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    @Scott Babcock 

    All Multi. Fourplexes and up at this point in my investing. I have a pair of duplexes in the portfolio though.

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  • Scott Babcock
    Seattle, WA · Member since 2015 · 36 posts · 9 votes
    11y

    @Kimberly Dawn Hey Kimberly, I shot a message to my broker friend in Oak Harbor... the essence of his response was about Oak Harbor, for what it's worth.

    He said that "(Sale) inventory is low and rental inventory is low... I'm hearing that even the navy base housing has waiting lists. So opportunity's there if you can get in and get something rented pretty quick."

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  • David Truong
    Investor · Seattle, WA · Member since 2014 · 37 posts · 13 votes
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    Originally posted by @Scott Babcock:

    @Steve K. Hey Steve, any idea on Everett growth next 5-10 years? Infrastructure improvements are always good!

    The new Boeing 777X plane is being designed and built up there and is scheduled to enter service in 2020 with around 300 orders so far. That in itself will keep the growth of Everett and surrounding areas strong.

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  • David Truong
    Investor · Seattle, WA · Member since 2014 · 37 posts · 13 votes
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    @Kimberly Dawn  check out podcast 59. The guest on there invest on Whidbey. Maybe you can reach out to him for some advice.

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  • Scott Babcock
    Seattle, WA · Member since 2015 · 36 posts · 9 votes
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    @David Truong Thanks for the Boeing news, David, as well as pointing out the podcast about the Whidbey investor. I haven't made it to that one yet ;).

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  • Jason Wagner
    Real Estate Agent · WA · Member since 2014 · 10 posts · 3 votes
    11y

    I am a realtor in the area and just finished showing a home to a military couple in Anacortes.  They said they are having difficulty finding a rental so are buying.  The entire area has very low inventory now in both the rental and sale sides.  I am seeing a lot of new people from the Florida base moving up here right now and they are a bit turned off from buying because of what happened to the prices in the Florida market at the downturn so rentals are a great proposition.  I have owned rental properties 3 hours from where I lived at the time and a home warranty made this much easier for the emergency repairs that come up periodically.  I am happy to help you out if you need anything.  Feel free to PM me and best of luck!  

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  • Kimberly Dawn
    OP
    Homeowner · Seattle, WA · Member since 2015 · 7 posts · 1 vote
    11y

    Thanks Scott.  I connected very briefly with a Langley property manager who said that right now she has more renters than houses available for them.  I definitely want to explore local professional input further.  I haven't ventured to Oak Harbor yet, just explored Langley, Clinton and a bit of Freeland.  

    What do you mean by "distressed flips dot the island?" Are you saying there's good potential for flipping, or that it has not been successful for investors who bought hoping to flip?

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  • Kimberly Dawn
    OP
    Homeowner · Seattle, WA · Member since 2015 · 7 posts · 1 vote
    11y

    @Paul Timmins thanks for the newbie advice.  It sounds like it comes from some great experience.  I am reading through the rewind ebook you suggested and it's perfect for where I and my partner are at in our beginning phase.

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  • Kimberly Dawn
    OP
    Homeowner · Seattle, WA · Member since 2015 · 7 posts · 1 vote
    11y

    @David Truong Thanks David.  Episode 59 will be my next listen!  And we'll do some checking in Everett in the meantime.

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  • Scott Price
    Rental Property Investor · Coupeville, WA · Member since 2011 · 135 posts · 52 votes
    11y

    @Kimberly Dawn , I own multi-family, SFR, office, retail, and land on Whidbey within my portfolio. So if you ever have a specific question as you investigate there, feel free to PM me anytime.

    Best Regards,
    Scott Price

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  • Paul TschetterPro Member
    Lender · Freeland, WA · Member since 2012 · 103 posts · 23 votes
    11y

    @Kimberly Dawn I also live on Whidbey Island.  I own numerous rentals and a coupe vacation rentals.  Feel free to contact me if you want some feedback.  I also know @Scott Price and he is a great resource as well!

    [email protected]Podcast Guest on Show #59
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  • Scott Price
    Rental Property Investor · Coupeville, WA · Member since 2011 · 135 posts · 52 votes
    11y

    Thanks, @Paul Tschetter .

    @Kimberly Dawn , also note that Paul is the guest who was interviewed in the podcast that @David Truong mentioned earlier in this thread.  Paul's an experienced local investor who knows the area well, and a nice guy too!  :-) 

    Best Regards,

    Scott Price

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  • Kimberly Dawn
    OP
    Homeowner · Seattle, WA · Member since 2015 · 7 posts · 1 vote
    11y

    @Scott Price 

    Perfect.  Thank you.  I will connect further with David.

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  • Kimberly Dawn
    OP
    Homeowner · Seattle, WA · Member since 2015 · 7 posts · 1 vote
    11y

    @Account Closed Hi Grant. Thank you for your comment here (2 months ago!). Now how did that happen?!  I appreciate your input regarding your experience in Everett and would love to hear more about how you came to acquire your multiplexes there.  I am inclined to agree with your thoughts on Whidbey, especially since we'd like to try our hand at self- property-managing first, and would need to account for the extra travel time. We are looking at Everett now more closely ourselves and I remembered your comments from my first Forum entry.

    Should you have time, I would love to hear more details about your experiences.

    Thank you!

    Kimberly Dawn

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