STR Markets in Pacific NW? Is anything viable for cash flow?

Question

Hey everyone - first time real estate investors here. My wife and I are looking to purchase a STR property to rent out for cash flow. My wife has a background in property management and we have owned LTRs previously. We would prefer to have our first property be in the Pac NW area as we live in Seattle and this would be our first experience with STRs, which we plan to self manage. We don't necessarily need a place that we want to visit frequently ourselves. Cash flow is more important.

After some initial research, the market in WA in particular seems tough. Lots of regulations in some of the more popular vacation destinations, very high prices, etc... Anyone having success buying STRs in the Pacific NW in today's market?

Jay Hinrichs · Answer

there are counties in WA that still have no Zoning and as such no STR rules and regs  now if they will attract visitors thats the question. I just bought one and will give it a whirl..  But the income from it was a secondary consideration was not the primary goal so there is that.. I will either be a visionary or it will be a dud LOL

Dado Vucak · Answer

@Rick Buenaventura have you looked at Ronald/Cle Elum at all? About 90 minutes East from Seattle. Prices have sky rocketed within the last 12-18 months (like everywhere else) but if you can get into something for a decent price, it’s a great market to get into with year-round activities, and cash flow!

I’ve also heard there’s supposed to be some major development to the snoqualmie pass area. Might be a good time to get in there. You can use airdna to get a general idea of any market for free. You’ll need to subscribe to the city to get more granular data, which you’ll definitely want to do when you have a market locked down.

I was looking in Ronald/Cle Elum before the prices spiked and was too scared to pull the trigger and now I’m kicking myself!

We ultimately made the decision to look elsewhere and after many hours of research, we decided to go with Coeur d’Alene! Currently under contract there and set to close in a couple weeks!Best of luck! Happy to help if you have any questions.

Ashlie Greising · Answer

@Rick Buenaventura Hey Rick! My husband and I are trying to do the same thing. We went under contract on a condo downtown that legally allows STR, but the building had quite a few issues so we backed out and now we are waiting on another opportunity to pop up. Downtown has been hit hard due to covid and condo prices have significantly dropped. But downtown Seattle with the space needle, and pike place, music venues, waterfront, hockey stadium, etc will always remain appealing to tourist in my opinion so we’re going to take the plunge and buy something as a 100% STR. Good luck on your journey and if you have any questions feel free to PM me :)

Sherief Elbassuoni · Answer

@Rick Buenaventura, I have Airbnbs. I will be more than happy to share what worked and did not work with me.

Thanks!

Amanda Dallman · Answer

Hi @Rick Buenaventura, @Dado Vucak,

I’m a real estate agent & investor that lives on snoqualmie pass from the Cle elum area. Both are great places to invest for STR with a ton of future development happening. If you have any questions about the area please reach out!

Cheers, and have some Fun!

Amanda Dallman

Real estate

(425)466-4092

Kat He · Answer

@Rick Buenaventura We househack with our basement unit as a STR, located east of the Pike/Pine corridor. If you’re targeting DT attractions rather than the vacation spots, as long as you’re within reasonable driving distance the location should still work. We were doing research in Phinney Ridge and Maple Lead initially. Happy to connect and chat further!

John Underwood · Answer

Search the area on Vrbo and Airbnb and look for heavy clusters of STR properties.  These are areas where people are having success.  Make sure the regulations are favorable for doing this. Some people operate illegally hoping they won't get caught or enforcement is light. This could change quickly if the rules are already against STR'S in the area.

STR Markets in Pacific NW? Is anything viable for cash flow?

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