I am new here. This year I am looking to buy my first rental house. My ideal budge is Max $30K, if possible, duplex house, or maybe single family house. I plan to buy turnkey rental property. I live in Seattle Area, WA, and I want to buy my first rental house in WA, maybe the distance is driving 1-2 hours from Seattle area. Now I need everyone give me input / feedback for my first question:
Where and which city/area I need start to look around for this budge range? I noticed that Seattle Area is too expensive.
That is max purchase price. I may try to get as many mortgage I can. I know this price could not buy a house in Seattle area, I plan to buy another area and still in WA. So where do you recommend for this price range so I can start to do the research for that area. Thanks.
Seattle, WA · Member since 2017 · 275 posts · 223 votes
7y
the only place in WA you might find a house for $30K is small deeply rural agricultural areas in eastern washington. Anything you buy will need lots of work and probably won't have a good tenant or economic base.
Might make more sense to put $30K down on a $150K condo somewhere.
@Brian Hughes I think I made a mistake after I did some research. The max purchase price is $300,000. I thought $30K means $300,000, but it should be $300k.
Would you like to recommend that which location(s) would make sense to purchase max $300k-$350k rental peppery ?
@Jerry Padilla I made a mistake. It should be $300k, not $30k. Would you like to recommend which location(s) for max purchase price range $300k-$350k for a rental property?
Seattle, WA · Member since 2017 · 275 posts · 223 votes
7y
$300K will probably find you a respectable SFR or maybe a small duplex in some areas of Tacoma and smaller, further out cities and towns in western WA. If looking at stuff that isn't close to a large urban area pay close attention to the local economic conditions. If you aren't familiar with the area (assuming you arent owing to asking for where to find properties) be sure to budget for a LOCAL reputable property management in your income/expense calculations.
Investor · Seattle, WA · Member since 2018 · 9 posts · 0 votes
7y
As an alternative, there are condo's in the $150k range that as of right now would cash flow that are an hour outside of Seattle. We are talking maybe $50 - $100 cash per door with 25% down. This doesn't factor in management but maybe if it is close by you can manage it yourself. So you could get two of those. However, HOA dues and assessments could erase all that and it would be hard to depend on increasing rent prices to make up for it. So take that alternative with a grain of salt.