Price to Rent Ration in South Puget Sound Area

[Tyler Brunette]

Hello! I have been hunting for the last 6 months for my first duplex to house hack. I have more than enough for an FHA but want to save 20% for a downpayment ideally. Looking at how overpriced the Tacoma duplex market seems (5-6% cap rate) should I buy now, or wait to save up the 20% down to avoid PMI and work on my career in private accounting. Looking at a budget of less then 340k for a duplex or triplex since I had been approved at that amount. Feel free to ask for additional info.

[Jameson Sullivan]

@Dave Skow I'm under contract on a duplex right now in Tacoma and have approved conventional money with 3.5% down... Not sure where you're seeing minimum 15%?

@Tyler Brunette If you're buying this as an investment long term, my opinion has always been WHO CARES ABOUT PMI. If the numbers work with it, then go forward. I personally think it would be a shame to miss out on a number of years of likely appreciation because you didn't want to pay (have your Tenant pay) $220/month in PMI... I understand it represents 10 or 15% of the mortgage and a few thousand a year in cash flow, but I repeat, if the numbers work and your Tenant is covering 60 to 70% of the mortgage, BIG DEAL! Best of luck.