Investing in Spokane Market?

[Jacob Wyatt]

Hi BP community! 

Recently, a curiosity for the Spokane Market has begun to intrigue me. Living in Seattle it is the closest large and affordable market to begin my investing career into. The city has a ton going for it and a good friend of mine whom grew up there has been an inspiration that the city is improving and would be a good investment.

I was curious as to what the BP community thought:

How is the Spokane Market? The properties seems to work well numbers wise in my calculations.

Is one type of market favorable to another (SFH vs duplex...etc)?

How are the quality of tenants in the area?

Would you recommend one part of Spokane over another to begin looking deeper into?

Any information is greatly appreciated! Thanks for your time!

[Tyler Morgan]

@Jacob Wyatt  

Spokane is a great place to invest right now if you can find the deals. Vacancies are at record lows and rents are keeping up with inflation+. 1700+ new units are permitted/planned to be constructed in 2017. These will all be class-A units that will have the highest rents. What we are expecting then is that class-B units will be very popular as there is little planned expansion in those working-class unit types. This means that owners of Spokane's mid-sized and small multifamily should see vacancy rates lower still and rents able to increase due to the high lessor's market. 

I hope that helps. Feel free to reach out if you have specific questions or need help finding properties.

Here is a link to NIA Black's 2016 Market Report for Spokane/Coeur d'Alene. The 2017 report hasn't yet been published online, but I have access to it if you are interested.

[Zack Clark]

Hey Tyler...I'm also looking at the Spokane market as a place of opportunity that I have a bit of familiarity with. I'd love to see the 2017 market report you mentioned if available. Thanks!

[Ana P.]

@Tyler Morgan  

Thank you for he information you provide. Do you know any agents in the area of Spokane you recommend working with? Thank you!

[Bettina F.]

Northern Idaho is another good investment option.  We bought in Rathdrum, ID in 2011, (home on 5 acres) rented it out for 2 years.  We sold our house in Tacoma in 2013, moved to Rathdrum in 2013.  We used the proceeds from the sale of our house in Tacoma to buy a six unit apartment building in Post Falls.  It has been great all around.  Rents are rising and both properties have appreciated nicely.   There is a great need for affordable housing in the area.  People are retiring from Seattle or California and moving to Northern Idaho and paying cash for houses.  This is driving up the housing market for the locals.

[Rudy Manna]

@jacob 

@Jacob Wyatt I am in same boat. I have been really aggressive in seattle-Tacoma area acquisitions. With some hard work and luck got about 10 sfr in the last year or so, but it's getting harder and harder to make numbers work for brrrr. There are so much investor money flowing from seattle tech that the spread between fixers and retail rates are getting narrower and narrower. I am also researching on Spokane, and hoping to get started this summer. 

[Jeff Hornberger]

Rudy Manna
Jacob Wyatt
Spokane can be a great place to invest. There are things you should know in regards to utilities that will effect your cash flow based on the areas of Spokane you buy in. If you purchase a duplex in the city more then likely you will pick up the tab on W,S,G however if you buy in the valley or parts up north water expenses are reduced tremendously (like only $25-50/mo vs $100) and sewer and garbage can be paid by the tenants.

Vacancy rates are very low, I manage 150 properties in town and own two duplexes myself (currently house hacking). Rents are increasing big time. MLS cap rates are around an avg of 5.5-6.5%. Not great if you ask me but off market deals and being creative is where you benefit the most in this hot of a market.

Feel free to reach out if you need help in finding something or just want to chat about the opportunities Spokane can offer. I specialize in finding off market property for investors and frequently have a deal to pass on to investors I know.

Always happy to help, good luck!

[Nicholas Q.]

Tyler Morgan could you send me the 2017 NIA Black Report also? I too am a Seatte REI with some experience in Spokane and looking to invest over there.

[Nick Koegen]

I would love to move there. It's on my 5 year plan. Lakes for swimming in the summer. Mountains to ski in the winter. Plus I heard a huge medical training/school is in the works downtown. I'm pretty sure that means more jobs and more tenants! Good luck I hope you hit it big out there.

[Shelby Williams]

@Tyler Morgan I would be interested in seeing the 2017 report as well. 

Thanks!

[Tyler Morgan]

@Shelby Williams @Nicholas Q. @Zack Clark  @Jacob Wyatt  @Ana P.

This is the 2017 Market Data Report for Spokane. PDF Let me know if you have any questions.

[Tyler Morgan]

Originally posted by @Ana P.:

@Tyler Morgan  

Thank you for he information you provide. Do you know any agents in the area of Spokane you recommend working with? Thank you!

 I am sorry, Ana. Somehow I missed your message till now. Look in my post signature for my contact info.  

[Zack Clark]

Right on...thanks so much @Tyler Morgan

[Nicholas Q.]

Originally posted by @Tyler Morgan:

@Shelby Williams @Nicholas Q. @Zack Clark  @Jacob Wyatt  @Ana P.

This is the 2017 Market Data Report for Spokane. PDF Let me know if you have any questions.

 Great info!  Thanks @TylerMorgan!