New Member Interested in Everett, WA

[Stephanie Leeper]

Hi All,

I'm a new member here on BP! I bought my first condo in January in Seattle, and now I'm interested in finding investment properties in Everett, WA. I'm a volunteer coordinator at my day job, and looking to create financial freedom  for myself.

[Chris Newman]

Hi @Stephanie Leeper

Welcome to the Bigger Pockets party!

I specialize in rural SnoCo land with transferable development rights and am just getting into the Note Game. But, if I was doing something involving residential tenants, I'd be house-hacking with student tenants within walking or biking distance of rapidly-growing Everett College. The general gentrification of Everett is well underway and the long term prospects look excellent, but there are many years ahead before the community seriously upgrades to its full potential. 

But, you need to get your foot onto the first rung of the REI ladder now and you can use this strategy to leverage your existing people skills, which not everyone has. I can't think of a better crash course in learning landlording than house-hacking, as well as earning higher net rents than ordinary rentals.

I've recently heard that room rentals in that area can run $600 - $800/month, so you can use some of the positive cashflow to save up a down payment for the next building. The nice thing about students is that they're ambitious, but low-income because they're young, not because they have life issues that are going to be more common in low rent areas like Everett. 

There are a lot of unrestored houses in the North Broadway neighborhood that can sometimes be picked up for under $200k. The more bedrooms, the better, of course. 

I'd sign up for a free Redfin.com account and they'll send you emails every time a new listing in your preferred area comes up. They'll also tell you when a bookmarked "Favorite" goes pending and what it finally sells for, which gives great insight into the current market conditions. 

Take your time before making a decision - look at a lot of listings to get a feel for the local market price/conditions and keep in mind that there's always another deal just around the corner. The really good deals don't last long, so you need to prepare to make a purchase before you even find the house.

One thing to really pay attention to in Everett, however, is the building condition. Many of these homes are up to 100 years old and some of them haven't been upgraded since Prohibition (alcohol, not cannabis :-) ) So, you could be looking at costly plumbing and electrical issues. You might even run into asbestos and PCBs.  

With Everett having the highest non-owner-occupied rate of the state's top 20 cities (56%), you'll also run into houses that have been used as rentals for decades, and possibly not that well-maintained. These aren't necessarily deal-breakers, but you need to factor in repair costs in the purchase price, and you can't go wrong estimating high. If you don't yet know how to spot potential issues, the best thing is to hire someone who does know for a professional opinion. 

BP is full of information on just these kinds of things, so plan on going on a learning binge until you get conversant. Most of the mistakes that you're likely to make have already been made by others and it's always better to learn those lessons second hand. 

There are also lots of people people here who are happy to answer questions. And, for many reasons, give back when you can, however you can.

For sure, as Brandon mentioned, be sure to set your keyword alerts, Especially "Everett" and "Snohomish" That will help introduce you to many of the other local REI players.

Good luck! If you have questions, please feel free to PM me.

Chris