Would you buy in Seattle?

Question

Here's my situation: 24, recent MIS grad from East Carolina University. Solid GPA but around ~3.5.

I want to move to a city with tech opportunities and somewhere that is clearly growing. I don't want to waste my time renting because I'm already invested in property elsewhere and I just can't see wasting any money in rent at all, even if the market isn't prime for breaking even on cash flow.

I am considering buying a property in Seattle but I can't find anything that will cash flow. I guess that's why most people are not buying there. But, I would be investing in myself. I would use money I make from a (hopefully) good job to aggressively pay off the mortgage. The problem is I live literally completely across the country and I can't just go apply to jobs every other day.

My plan is to do short term vacation rentals on Airbnb to help cover costs while working full time to pay it off. I feel I could have something great there once it's paid off.

Zach Schwarzmiller · Answer

Arlington, Marysville (less than 1% physical vacancy), Stanwood, Everett, Mukilteo, Snohomish, Monroe, Sultan, University Place, Fircrest, Lakewood, Tacoma, Puyallup, Sumner, Gig Harbor, Milton, Allenmore, Midland, Spanaway, Bonney Lake, Dupont

Andrew Kniffin · Answer

I agree with @Zach Schwarzmiller . As someone who just moved to Seattle from Minnesota, I'm amazed at the difficulty in getting reasonable rental rates (versus purchase price). Outside the Seattle area the numbers are more reasonable.

Brandon Turner often is able to achieve the 2% rule, but he is ~2 hours SE of Seattle metro.

Zach Schwarzmiller · Answer

That would be great; however, I don't have a physical office anymore. Bothell is smart, they saw that Mill Creek worked and took the City Planner and said do this again, but bigger. Were working on a couple really cool projects there right now actually - excited to see this play out.

Kirill Chervets · Answer

@Zach Schwarzmiller Yes! Bothell landing is going to be the next Mill Creek Town Center. I just closed on a MH in Holly Hills which is about two miles off of main street in Bothell. Rents are through the roof and so is competition but the opportunity still exists. Zach I still need to make it to your office for a cup of coffee and chat with you...

Zach Schwarzmiller · Answer

@Kirill Chervets has a great point with Bothell, can't get as good of a "deal" but the growth Bothell is anticipated to experience over the next 2-3 years more than makes up for a "deal" now. If you don't know what's going on there take a look at Mill Creek now then research Bothell Landing.

Kirill Chervets · Answer

There is so much opportunity "just" outside of Seattle. Even look into Bothell, Juanita, Mill Creek and South Everett. The 1% rule seems achievable for sure and is a good start. All within 20-30 min to Seattle but has much more reasonable price vs rent ratios.

Nghi Le · Answer

I second Zach's suggestion. Seattle and Tacoma (about 40 minutes south of Seattle) are completely different markets. I believe there will be more tech companies popping up in Tacoma over the next decade because of rapid population growth (last I heard 40% expected by 2020). I also recommend multi-family if you're planning to live in the property and want to cash flow better.

I'm also an IT consultant working in downtown Seattle with an educational background in business and computer science. If you're interested in that field, I can answer any questions you have.

Zach Schwarzmiller · Answer

Brandon Tuner is in a very different area, I was more thinking go north to Snohomish or south to Pierce. Pierce still has the most rapidly rising rents in the Seattle MD Area currently and foretasted over the next 2 years.

Ricky Stafford · Answer

Does anyone know of any specific neighborhoods?

Ricky Stafford · Answer

Single family, I would be renting out a private room.

Would you buy in Seattle?

Would you buy in Seattle?

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