Investment Property near Seattle area under $800k

Member since 2022 · 2 posts · 3 votes

Hello all!

I recently moved to Lake Forest Park from SF Bay Area. I am looking to purchase an investment property under $800k. I am a layman and I am unfamiliar with the rental market around Seattle.

1. Which area should I be looking at?

2. Which yields the most return-- single residential home or multi units?

3. Is it worth it to hire a management company?

Thank you,

Ken

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Steve Anderes

Real Estate Agent · Seattle, WA · Member since 2019 · 4 posts · 3 votes

Welcome to the Evergreen State Ken!

Lots of great opportunities in the greater Seattle Area in the price point you are looking at. I think it will be important for you to have a bit of a lengthy conversation with someone that can dial your questions in better and guide you in the path of making some money on your investment, not just selling you on the investment. I would be happy to talk with you and help you identify better parameters for your search, but here are some brief answers to your 3 questions.

1. Which area should I be looking? If you are going to do some of the improvements, upgrades and management, the closer to you the better. I look for areas that will be improving - think new light rail or urban villages nearby for an example.

2. Which yields the most return-- single residential home or multi units? Glad there was an easy question... the answer is both. Both yield the most return so long as you evaluate them accurately, purchase correctly, update, maintain, and manage correctly.

3. Is it worth it to hire a management company? I love having a property manager for my properties. The ones that cashflow well, I really don't even mind paying for property management. I do have some properties that don't cashflow well and I do self-manage some of those until they produce more income.

I hope some of this helps and I would be happy to chat with you in more detail.

Steve

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Steve Anderes
Real Estate Agent · Seattle, WA · Member since 2019 · 4 posts · 3 votes
4y
Welcome to the Evergreen State Ken!
Lots of great opportunities in the greater Seattle Area in the price point you are looking at. I think it will be important for you to have a bit of a lengthy conversation with someone that can dial your questions in better and guide you in the path of making some money on your investment, not just selling you on the investment. I would be happy to talk with you and help you identify better parameters for your search, but here are some brief answers to your 3 questions.
1. Which area should I be looking? If you are going to do some of the improvements, upgrades and management, the closer to you the better. I look for areas that will be improving - think new light rail or urban villages nearby for an example.

2. Which yields the most return-- single residential home or multi units? Glad there was an easy question... the answer is both. Both yield the most return so long as you evaluate them accurately, purchase correctly, update, maintain, and manage correctly.

3. Is it worth it to hire a management company? I love having a property manager for my properties. The ones that cashflow well, I really don't even mind paying for property management. I do have some properties that don't cashflow well and I do self-manage some of those until they produce more income.
I hope some of this helps and I would be happy to chat with you in more detail.
Steve

2 Reply
Adrian Chu
Real Estate Broker · Seattle, WA · Member since 2014 · 1k+ posts · 427 votes
4y
Hi Ken. My clients from California have had incredible success with new and newer construction townhomes in City of Seattle.

Granted, prices have gone up in the past few months, most 2 bedrooms in class A locations are fetching $3300-3500 per month. Purchase price in the high 6s to low/mid 7s.

Almost every single tenant we have encountered is a software engineer.

Let's connect.
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Jess Haas
Realtor · Seattle, WA · Member since 2019 · 117 posts · 165 votes
4y
Hey Ken,

Welcome to Washington. I am also originally from the south Bay area(Mountain view). with 800k there are a lot of options. You could go North or South Seattle. The question is what are your goals? Do you want to park your money in an investment(townhome) or do you want to rehab and refinance and pull more of your cash back out for another investment? The market is hot and inventory is low right now. With interest rates hiking up competition is as fierce as ever. If I were you I would try to find something off market.
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Sherief Elbassuoni
Realtor · Bellevue, WA · Member since 2019 · 882 posts · 1k+ votes
4y
@Ken Chen, welcome to the Seattle area
1- WIth this budget, you have a lot of options. North/South Seattle. You can also consider North Pierce County or South Snohomish county if you did not want to spend all the budget
2- It varies a lot, but in a general way, single family appreciates a little more than small multi-family. Once you go to big multi-family, it all depends on cap rate and Net Operating income
3- If it is only one house, may be it doesn't worth it and it will be a good learning experience for you to manage at least one house.
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Andrew HoganPro Member
Rental Property Investor · Indianapolis, IN · Member since 2016 · 559 posts · 463 votes
4y
@Ken Chen what do you want to get out of this investment property? Passive income and no headaches?

I'd consider investing in syndications with experienced operators. That can offer you the best diversification and yield in the long-run if you want to be truly passive.
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Aaron NelsonBusiness Member
Real Estate Agent · Seattle, WA · Member since 2016 · 307 posts · 191 votes
4y
Hey @Ken Chen! Welcome to the Pacific NorthWest. The best answer to your question is…it depends on your goals. The City of Seattle itself is pretty unfriendly to landlords, but there are some opportunities further outside of the city. My clients have had a lot of success in Tacoma and the surrounding areas. Let’s chat!
[email protected]425-880-2580
White Coat Realty534 Reviews
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