Newbie looking to buy a vacation rental in WA

[Michael Molnar]

Hi there! I just found this site while researching how to get started in real estate investing. I'm not a total newbie, I guess, since I do own a rental house (I moved two years ago and since the market made it a great time to buy, but terrible to sell, I became a landlord).

So my wife and I are in the early stages of looking for a vacation property. We are also in talks with my BIL and SIL to go in on it with them (they also own a rental). We want something for personal use, but also intend to rent it out when we are not using it.

Being in the Seattle area, we have a huge array of options within a 4 hour drive. We could get something on the ocean beach or in a coastal town, along the Puget Sound or San Juan Islands, on a secluded lake, in a resort lake town, in the mountains, out in the woods, something in wine country, somewhere in sunny Eastern Washington. . . we could buy an existing home or a large piece of land and build a cabin (or three); the possibilities seem endless right now, which is causing my head to spin.

I am very much looking forward to starting on this journey and learning from, and contributing to this site.

-Michael

[Tiffany Plovie]

@Michael Molnar Welcome to BP! I am also located in Bellevue. It is always good to see a neighbor on the board!

Wow! You have a wonderful array of choices at your fingertips! In order to help you, I would need to know a little bit more about your current situation. What are your numbers? Just give me a ball-park range and I will see what I can come up with.

As an agent focused on investment, I have sold homes in many different areas, for many different purposes. Ideally, you would want to buy a home in an area that will appreciate well over time. Look for properties that have differentiating features and a location that is hard to replicate.

As an example, Suncadia is a wonderful resort. I love to visit there as they allow my (very large) dog, have a good restaurant, easy access to hiking trails and a golf course. However, I would caution anyone from buying there, as so many similar properties are springing up nearby. Eventually, one development will end up being the newer version of Suncadia- leaving the original buyers holding a property that will not be able to maintain high rental rates.

In comparison, Lake Chelan is different, because the topography of the area limits development.

Also, a warning about the San Jaun's... They have an additional 1% tax that is added to all real estate purchases. It goes into the San Jaun Preservation Trust to preserve the natural lands of the islands.

What areas appeal to you the most?