Good time to buy a personal home?

Question

Hi I’m new to Bigger Pockets,

We moved to Washington 6 months ago, renting in Bellevue, we have 4 Buy and Hold properties abroad but not even close to the 50% or 2% rule in Bigger Pockets, now we are learning...

We are interested to continue Buy and Hold done properly, but it makes sense for us to buy a place for us first, instead of paying rent, and if we have to move later on we can rent it or sell it depending on the market, not that we foresee moving any time soon.

Looking at the prices in Bellevue, Issaquah, Sammamish, Kirkland and Redmond, we are surprised how expensive it is. Is it really a good time to buy a personal home in these areas? Have they reached their peek or will it continue to mount?

What other areas can we look in that might get a good appraisal? School District is important to us.

Thanks for your comments.

Jason Emery · Answer

Looks like we're neighbors.  I've had a condo in Kirkland for about 10 years.  Can't say it's appreciated a whole lot.  Was up really high, but dropped down.  Only in the past year and a half has it drifted back up again.  Thing about HOAs is that they don't necessarily have the funds to fix everything.  Ours has been going through a lot of trouble.

Anyway, a lot depends on what you plan on doing in the area.  I've seen parts of northeast Bothell that weren't too badly overpriced.  However, Everett, Burien, and Auburn *seem* like better choices right now.  Probably not what you want to hear since for yourself you're eyeing wanting to be in a nicer area.

That being said, here's one that's been on the market a while.  I really ought to try to analyze it and see what it works out to, but condos make me nervous.  Assessments can be terrible, for one.

I'm just getting started with investing, myself.  But I bet with something like that which has been on a market a while there must be a good reason.  Might be workable.  Might not be. Could even have a hidden lien on it from a past assessment or back payments.

Joselyn Cespedes · Answer

Hi @Jason Emery, thanks for your feedback! As you, we would currently prefer a single family detached home, basically because we need a 3 bedroom. Maybe later on when we are ready to continue with buy and hold as a passive income we would look into Condo's that cash flow...

Good luck with your investments!! Thanks once again.

Joselyn Cespedes · Answer

Hi @Alex Chin!! Thanks for your comment, I like how the market looks depending on the eyes that see it: agent vs flippers :)

Thanks once again!

Joselyn Cespedes · Answer

Hi @Dan Chapman, thanks for the info, will take it into consideration.

Joselyn Cespedes · Answer

Thanks @Dave Skow for your reply, yes commute time is very important specially when you add it up and see how many hrs a week you spend on the road. Glad to see you are optimistic about the prices in the areas we are looking at. Thanks once again!

Alex Chin · Answer

Hey @Joselyn Cespedes. I would agree with you that home prices are sky-high throughout the Seattle area and climbing.

Remember that school district is important to a lot of folks, it is going to be very difficult finding anything low-priced in such an area that isn't a total teardown.

Have we seen the peak of the market yet? You'll probably get a different answer depending on whom you speak with. I know some agents definitely believe the continuing growth of jobs/population in the region will keep driving home values higher. I also know a few investors who believe we're only a year or two away from a correction and they are flipping as quickly as they can in order to not be caught in a buy-hold.

For me personally, Seattle is a little too hot for me to want to try any kind of small (sub-$5m purchase price) buy-hold investment. I would be looking a bit further afield, either north to Shoreline, Everett, etc., or south to Tacoma, Auburn, Kent. School district might not be what you want, but in order to find the "best" schools, you'll probably need to pay dearly for it.

Good luck and success to your investing! Be sure to ask questions so the community can offer input.

Dave Skow · Answer

Joselyn - thanks for the post ......prices in the area  you mention aren't  likely to flatten out anytime soon ..... as the other  reply to your post  suggests ...you might consider  north king / south king and  Snohomish county  for  less expensive options  ....not sure  about your commute needs ....due to consistent bad traffic and travel times - this could become a large  factor  in where you end up

Joselyn Cespedes · Answer

Thanks @Nick Rinnert for the pointers will look into these areas.

Nick Rinnert · Answer

Great area for buy and holds are: Everett,Snohomish,Marysville. Snohomish county is a good place to invest.