Seattle & Airbnb, post-COVID

[Sean Lee]

Hey friends,

I'm looking into investing in a 3 bedroom, living in it, and Airbnb'ing out the extra two rooms.

As I'm almost ~30yo, Airbnb'ing out the extra rooms seems more appealing than renting out the two extra rooms to roommates. The flexibility to stop renting it when I want seems to be a good advantage of Airbnb in the long run.

Because of the decision to Airbnb in the long run, I've found that areas like West Seattle, North Beacon Hill, and Mount Baker should cash flow well-- having the combination of being close enough to Pike Place / downtown, but still at a decent home price.

Though, I don't know much about what I'd be getting into, with Airbnb & Seattle.

Does anyone have thoughts, guidance, or resources on the idea? Suggestions on neighborhoods are welcome too-- anywhere in Greater Seattle.

I know COVID is impossible to predict, so I'd definitely appreciate advice in both scenarios (COVID dragging out vs. resolving quickly.) 

Please critique away, and don't hold back-- I'm not attached to the idea at all. My backup option would be to purchase a smaller place for myself (maybe Lynnwood/West Seattle) and begin saving for a separate rental property.

Thanks in advance!

[Michael Haas]

I think your neighborhood choices are spot-on and still present a good value. Those neighborhoods + the central district are where most of our STR's and LTR's are located. I would add Judkins Park to your list - prices are usually lower than North Beacon Hill / Mount Baker even though Judkins Park is so close to the city. Vulcan's retail / grocery store project on 23rd and Jackson will open this year, and the lightrail on 23rd and 1-90 will open in 2023, both of which should increase rental demand and RE prices.

I'd be cautious about Airbnb and have a backup plan. We have three STRs - West Seattle, Stevens Pass, and Homer Alaska. Stevens Pass is doing great and has already returned to normal occupancy (everyone wants to flee the city!) but Seattle is still lagging, even now that the summer high season is upon us. 

Happy to grab a coffee and share our experiences - we've done both traditional house-hacks and have been Airbnb Superhosts for years. Cheers and best of luck! You'd decided to get started, and sometimes the first step is the hardest of the journey. Keep it up!