Tacoma Lincoln District?

Question

Hi all!  I'm looking at my first investment property in Tacomas Lincoln district. A lot of properties in the area are zoned as RCC, mixed residential and commercial.  There also seems to be government investment in revitalization of the neighborhood.

Is there anybody with experience in this neighborhood, and if so, how do you see it positioned within Tacoma? Any feedback on the RCX zoning in terms of do you see it more as an opportunity or a risk?

Appreciate the help and look forward to leaning!

Annie G. · Answer

Hi Brendon, yes, it depends. I will stipulate that I am not yet an investor (I was just introduced to BP & am researching the possibilities) but I do  live about a mile East of Lincoln High School. Among my friends in Tacoma- mostly white-collar, non-Seattle commuting, late 20s to 30 somethings, with no kids- most have rented in the North End, downtown, or Fircrest, and then gravitated towards the South and East side to buy starter homes.

The cost of renting a nice SFH on a well kept street didn't seem to vary much across Tacoma (note, this is for comparable SFHs and excludes the new apartments along the waterfront), so I chose to rent in the North End. However, the cost of buying the same type of property is where the spread was introduced, with homes in the nice end neighborhoods of Tacoma costing $100k more for comps than in South & East Tacoma. Again, this was my perspective as a new home buyer (I bought last year), not an investor.

The quality of the Lincoln District does indeed vary dramatically street by street, and I would encourage you to drive around during both day and night to observe. The street I bought on is part of a three block stretch of nice homes occupied mostly by home-owners (with kids), as well as one large section 8 apartment complex. The few SFH renters on my street are generally military families that commute to JBLM (who rented blindly before moving to the area). It is a quiet area and everyone seems to look out for each other. But just a few blocks away on G street, my home owning friends complain of loud domestic disputes at night and their cars getting shot at with BB guns. I have not met any students living in this area, and the young professionals tend to be the home owners, not renters. The main Safeway in the Lincoln District, on S 38th, is also rough, with a poor selection of "higher end" produce (i.e. organic) and no self check out lanes- if that gives you an indication of the level of trust they have for their clients.

Here is a link to the City of Tacoma's Lincoln Revitalization page, and here is an article with an update of the project.

Hope this helps.

Brendon Stewart · Answer

@Annie Graeter That is a very insightful post - I am grateful for the insights!  Really helps me to understand some of the dynamics a bit more clearly.

Brendon Stewart · Answer

@Liz Koser @Ari Chamberlin Thanks for the feedback guys, appreciate it!

Do you have any thoughts on proximity to Lincoln High School?  There is a nice park there and the school itself is a nice piece of architecture.  I do know that it doesnt have the best reputation, so I'm wondering if it is generally a better idea to locate further away from the campus.  Like you said it varies block by block, so maybe the answer is simply "it depends".

I'm also curious as what types of tenets you see looking to move into single family housing in that area.  Young professionals, young families, students, etc?  Any insights there would help me get a better understanding for the neighborhood and the target tenet that I should be thinking about.

Ari Chamberlin · Answer

I also have a rental there and I second Liz's comment. also as the blocks change from block to block, As a buy and Hold investor you will out last the bad times. Its not a war zone. but keeping your place up will have an impact on the area.

Ari

Liz Koser · Answer

We purchased a residential property in the area last year but not RCX zoning. In general, I think the neighborhood is on the rise due to proximity to downtown, I-5/Seattle access, etc. In terms of buying, the quality of the neighborhood varies quite a bit from one block to the next. Some areas are well taken care of and others need work.

Scott S. · Answer

I used to live in the Lincoln District and Annie is spot on with her comments.

I also posted some info in this thread that goes into some more detail that might help you with that area.

https://www.biggerpockets.com/forums/67/topics/357...

In general it's a rough area but some blocks are better than others.  There is a lot of crime and drug problems especially near S 38th St and along S. Pacific Ave.  The first time I visited that Safeway in Lincoln District there was a full-time security guard out front and it was then I realized things were going to be different in this neighborhood.  Someone was actually murdered in that parking lot while I was living there.

I would try and find a block that is majority owner-occupied with few rentals as possible.  The tenant pool in that area will mostly be high risk, high maintenance (low credit scores).  Self-managing it from Seattle might be problematic depending on how lucky you get.

Car insurance rates are particularly high in 98418 due to all of the above.

The sex offenders residing in that zip code are extremely high as well.

Tacoma Lincoln District?

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