Hello! New Investor in the Seattle Area. BRRRR and Flips!

[Omar Ongoco]

Hello Bigger Pockets World,

I am a long time Bigger Pockets Podcast listener and I recently attended my first Webinar with Brandon Turner on rental properties, which fueled me to become more active in the BP community!

I currently live in a single family home in Auburn, WA by myself but am looking to move into a condo or townhome in Seattle - particularly the SLU, Belltown, First Hill, or West Seattle. The market is so hot right now and I'd like ideally like to jump in that market before it gets even more expensive. Is it reasonable to say Seattle is going to be the next San Francisco (please advise if I am off on this)? With my single income, I know it’s nearly impossible for me to get into that market so I need a creative way to get into it. I am thinking about buying at the foreclosure auction, but I am also open to other strategies.

I am interested in house flipping and buy and hold in the greater Seattle area, mainly King County and Pierce County. One goal of mine is to flip houses to build up my capital. I eventually want to get to the point financially where I can acquire rental properties while also continuing to flip homes.

For buy and hold’s, my five-year goal is to acquire five rental units that cash flows, consisting of single family and multi-family units. I aim to refine my criteria of rentals, guidance on how to acquire rentals for low money down, tax help, legal advice, and property management recommendations. Overall, I look to build my real estate team, which will allow me to reach my goals.

Thank you for your time and support!

-Omar

[Scott Hollister]

Welcome @Omar Ongoco!

I love that you took @Brandon Turner advice about becoming more active on BP! (Action is paramount to your REI success)

Its hard to say what town will be the next "hot thing". It is a bit like gambling, millionaires don't do it so why should you? My advice would be to invest in that area IF it has good schools and job growth. (Or both of these are upcoming)

The creative way of getting in the market is to add value. Whether that is getting a hard money loan on a REO or going to foreclosure auctions. (Be careful about auctions and do your due diligence first)

Start with your goals, what are the actionable steps to get you there in 5 years? 

• Do you have a primary in this area? Have you thought about house hacking a duplex? Its a great way to enter in REI and that will give you 2-4 units with low money down (FHA first time home buyer)
• Flipping is a tough business when you are not experienced. The TV shows paint the wrong picture and the best flippers are extremely boring. They have a niche in the market and relentlessly stick to their knowledge and understanding of that market. 
• If your goal is to get 5 rental units: the quickest way would be to house hack a 4 unit multifamily, then in a few years take out a HELOC (You can go up to 100% LTV if you find the right bank) partner with hard money to buy, rehab, rent, and refinance that new property. Boom you just completed your goal in half the time. (I made it sound easy, sorry;)

Keep up the good work and please ask any more questions to help you achieve your goals!