N00b from Seattle, WA

[Aditya Veluri]

Hello fellow BiggerPocketers, I’m glad I found this rich source of information. Huge THANK YOU for all your valuable contributions. I’ve been reading a lot of posts. Listen to the podcast religiously every morning. Here’s my story: I’m planning to diversify my wealth and start investing in Real Estate. Most of my current portfolio is in stocks and 401k. I’m primarily looking at investing for cash flow. Hope to meet people with similar interests. From my basic knowledge and research on BP, I don’t see Seattle being a good market for rental investing. Doesn’t come close to the 1% rule. What are good markets for rental cash flow investing? Memphis? Dallas? Any pointers on where/how I can get started will be hugely appreciated. Thanks! AD

[Jake Alger]

Hi @Aditya Veluri,

I am a broker in Seattle and can tell you, investing for cash flow is not dead up here.  Depending on where you look, it can be difficult.  Almost everywhere here is competitive, but if you look in the right areas, it can be done.  I just helped a client who found a cash flowing property outside of the city down in Kent.  I'm currently working with another buyer who is looking for a cash flowing property in Tacoma.  They can be found, you just have to hop on them quickly.

Cash flowing properties paired with the appreciation value we are getting up here is a tremendous opportunity in my opinion.  With our values increasing so rapidly over the past year (in particular), anyone who purchased 12 months ago has seen amazing returns on both rents and overall value of their properties.

The main thing to watch out for in Seattle is the rental rules and regulations within city limits. I won't list them here but recommend you check them out and see what other investors within the city limits are saying. Many are moving their money outside of the city by liquidating their homes.

There's a lot to learn when investing, especially in hot, competitive markets.  Having a broker, fellow investor or mentor in the market you're looking at is definitely an added value.  Don't let anyone tell you otherwise.

Feel free to contact me if you have any questions regarding the Seattle market and surrounding areas.