North Seattle Multi-families

[Timoteo Guy]

Hello BP community,

I am very curious to see what investors are doing North of Seattle. What the status is on multi families everything north of Seattle currently doing? Has anyone seen a lot of opportunity in Mt Vern, Bellingham areas? Have you seen any increase in the area because of Seattle being so aggressive? Truly looking for properties 4-20 unit range. All inputs are welcome! 

If this Question is in the wrong form I do apologize. 

[Patrick Britton]

@Timoteo Guy I would look very closely at Mount Vernon, Burlington, Blaine and Ferndale. Bellingham is commanding a premium price point these days so in terms of cash-flow it is not as appealing. Medium cap rates for Bham are around 5.25% - 5.75%, and that's before a second review of the financial information by an unbiased third party. Whenever looking at anything you'll need to double and triple check the numbers posted by the listing broker. Of the 9 MLS listed MFR in Bellingham, only 3 provide enough financial info to make any sort of reasonable analysis. The rest are missing cap rate, gross monthly income, NOI, etc. I guess basic arithmetic is a little too taxing for some.

Some buyers I have worked with who started in Seattle or King Co have actually moved their attention to Tacoma for cashflow as opposed to looking north.  I've been finding that the demand for Whatcom and Skagit CO MRFs from King CO investors to remain tepid.  So yeah, probably a good time to invest before the word gets out :)