Any investors with Seabrook, Washington Vacation rental experience?

Question

We are considering purchasing a STR in Seabrook, Washington. Prices are high but they claim some pretty impressive figures like circa 15% YOY value gains since they started in 2004 on average (I struggle to believe this). To be fair they have done a very good job of managing their growth, building out their commercial areas, and having things to do there year round. On the surface it also sounds like you have a lot of local support for managing and maintaining the property but I suspect that will kill off most of the returns.

The real information is somewhat hard to come by as the developer controls much of the market, the rental management, and a lot of the previous pricing data as they didn't report to MLS for much of their history.  We would love to hear from someone with first hand experience in this market.

Thanks

Christopher Price · Answer

Well hopefully someone here can shed some light on them for you. I haven’t seen too many people posting here from the PNW vs the east coast. If you’re on Facebook you could try this group, maybe someone there has some info for you. https://m.facebook.com/groups/325358012242591/?ref=share&...

Best of luck!

Jaime Cleveland · Answer

While we like Seabrook and would use it sparingly ourselves, this would be an investment so unless the numbers make sense, we would just rent if we want to go there and invest elsewhere.

To be fair, you can't use the STR numbers for the surrounding towns as they really are not that similar.  If you drive through the other towns, it's apples and oranges in terms of amenities, the architectural detail of all the properties, the feel of the place, and the things they have built into the town of Seabrook.

Again, that's all fine and good but the numbers have to work which is why I was hoping to speak to someone with first hand knowledge of owning a property or properties in the town without an axe to grind like the Seabrook sales people.

On the issue of negative STR regulations roughly half the houses in the town are in their rental program currently so I don't see that as an issue in the future as an investor as it's baked into the town's business model and not likely to change.

Lauren Yiu · Answer

@Bob B. Like most people on this post, I'm interested in the numbers for a vacation home in Seabrook.  Do you see 15% YOY value gains for the time you own a home there?  In terms of managing the vacation rentals and maintaining the property, how much do they take? What's your experience working with the Seabrook Hospitality?  Any information would help, Thanks!

Bob B. · Answer

Long time Seabrook homeowner here!

Happy to answer anything I can. ~

Michael Baum · Answer

Seabrook isn't that new. It has been in development for over 20 years now.

There is a lot of building going on and prices are quite high so I am not sure there will be excess appreciation. We saw at least 50 new homes in various states of construction as well as more lots all platted out and ready.

Michael Porche · Answer

Hey @Jaime Cleveland Great question. Seabrook happens to be one of those interesting phenomenon in regards to that location because it was essentially one guy came in and started developing it and leveraged really beautiful natural elements of it. I think it's still so new that you can be part of the hype and get a lot of growth in part of that. I just don't know where that stops or where that ceiling stops, but because it's still so new, there's probably going to be a lot of money moving into that area as a new vacation spot.

So chances of you buying there and doing well are probably in the positive. However, you really need to map out what returns that currently people really are getting there and what do those include? So whether it's appreciation what does that look like? It's cash flow what does that look like? Because both of those are affected by different metrics which you need to essentially measure each one individually before you can really come up with a good decision.

I hope that helps.

Michael Baum · Answer

Hey @Jaime Cleveland. So we were just there a few weeks ago. We are looking at various places on the beach to see how they pencil out.

I will tell you right now that Seabrook caters to a specific crowd. It is a bit plasticky in my opinion. It is not an authentic PNW beach town like Moclips and Longbeach. It is a manufactured town built to a spec.

Yes the houses look nice and I am sure they are. They have a lot of little shops here and there and the whole place is walkable to the nth degree.

I really don't see that place cashflowing. Everything I looked at didn't when I ran some base numbers.

I see Seabrook as a place to visit when you want and use the losses to offset high income net worth stuff. It almost seems like it was designed that way.

Christopher Price · Answer

I also struggle to believe that. I can’t speak for them or that area but I have had a few investors that wanted to be on the coast-pacific beach to ocean shores) and from what I’ve seen and researched there wasn’t amazing results based on COC numbers. Who know what regulations will come down the pipe as other local towns have implemented.

Just looked up Airdna and they have the lions share(289 rentals) in the area although they aren’t listed in the Top Properties category. They do own that town like you said from the looks of it. The top properties are local managers with under 15 properties.

Is there a reason you’re looking here? Trying to use it as well or just as an investment?