Buying a property in Eastside Tacoma

[Amanda Rivera]

Hey all,  

So I'm a new investor and I am in the middle of the purchasing a property in South Tacoma (eastside). To be honest I'm pretty sure it's not the best deal but I felt like I was falling in to the analysis paralysis trap and I needed to get into a deal to give me that push I needed to get into real estate investing. The property is under contract for $405,000 it's a 4 bedroom 2 bath SFR with a separately metered mother-in-law studio (which also has it's own kitchen and bathroom). Its a really well done reno and I was planning on househacking to cover the mortgage and utilities. I looked at rental comps and from what I'v seen I can get about $900 for the studio and $2000 for the primary house to a family; $2400 if I rent out rooms (correct me if I'm wrong). My question is regard buying such an expensive property in an area and that is considered up and coming. Does anyone see that area changing enough to validate 2673 sqft house being worth $405,000, even if it does have high end finishes.

[Timothy Tooker]

@Amanda Rivera

1. Your realtor should have done a CMA to make sure you are not over paying for a property. If they can not show you that you are making a good investment, you have the wrong realtor.

https://www.redfin.com/WA/Tacoma/5813-E-I-St-98404...

http://mls.realist.com/index.jsp

https://epip.co.pierce.wa.us/CFApps/atr/ePIP/build...

2. I think you are a little high on your rent numbers for the Main house. It is only 1600 + sq ft. I have clients that rent 3/1 around $1400. Could you get more, based on the level of finish... Sure, but not many professionals are choosing to move to east Tacoma to live in those neighborhoods. 

3. For that type of money you could buy a true Multi-family in a better part of Pierce County.

Sounds like you are trying to force a purchase in a hot and crazy market. In my opinion that could lead to a very good lesson the hard way.