All Forum Posts by: Scott S.

Personally, my family and friends JUST canceled our trip to California and hotel stay.  Add us to the stats of Covid-19

California, Ohio, Massachusetts, Illinois ordering shutdown of ALL restaurants, bars, etc... more states to follow.  Getting ugly.

https://fox2now.com/news/list-states-that-have-closed-restaurants-and-bars-to-dine-in-customers/

@Jay Hinrichs, the responses in that thread were interesting to say the least and seem to completely miss your point.  The "not my problem" attitude is completely naive.  It will become "your problem" whether you want it to or not.  The highly leveraged investor with limited capital is going to really struggle here.  As you stated, the sky has been blue for a lot of these new investors for a long time.  They have never experienced any turmoil.  

I can say this is far more damaging on the travel/STR rental category than 9/11 was. The message then was it's safe to travel. The message from the Gov today is "Don't travel unless you absolutely have too". Wow.

I'm at ground zero for this pandemic.  My child's school and the entire state of WA is now shutdown for min 6 weeks (probably more).  More states will follow.  Restaurants are closing down.  All events with 250 people or more are banned.  Every single concert, business event, etc.  Our ski resorts just closed all the lodges/cafeteria/rental shops.  Only skiing but without that extra revenue they are likely to just call it quits for the season.  It's a domino effect with all these companies taking a hit, laying off employees, cutting hours, etc.  

Today the Seattle mayor issued an emergency order that places a temp moratorium on residential evictions for non-payment of rent. It will last for 30 days or until Seattle’s coronavirus emergency ends.  And it can be extended if she bases it necessary.

https://www.seattletimes.com/seattle-news/health/durkan-to-issue-moratorium-on-residential-evictions-in-wake-of-coronavirus-outbreak/  

Link to the Seattle Times article below.  I expect this to be the first of many moratoriums related to the Coronavirus pandemic across the country.  

https://www.seattletimes.com/seattle-news/health/durkan-to-issue-moratorium-on-residential-evictions-in-wake-of-coronavirus-outbreak/

The Fed doesn’t set mortgage rates.  The Fed is basically just trying to control inflation via short-term rates.  Mortgage rates are long-term.  

The 10-year treasury yield and the 30-year fixed move in relative lockstep.

There are STR all over the PNW. My favorites in WA are Lk Chelan, Leavenworth area and Bellingham area. But there are vacation rentals all over the Puget Sound region - Seattle, Vashon Island, Gig Harbor, etc.. even in the city of Tacoma. For OR, starting on the coast at Seaside, Cannon Beach, Pacific City and all the way down the coastline. City of Portland has a ton as well as Hood River area, Mt Hood and of course Bend, OR.

How did you come up with the $850/mo figure?  That seems extremely high for just a room in OK.

The city of Tacoma requires you to have a Rental Business License.  

https://www.cityoftacoma.org/government/city_departments/finance/tax_and_license/business_license/new_businesses/rental_business_license

The license fee is based on anticipated annual gross rental income received (from $25 - $250)

https://cms.cityoftacoma.org/taxlicense/application_for_rental_registration_nov18.pdf

As someone who lives in Tacoma (10+ yrs) I can assure you won't be living in a "rough" neighborhood with a budget of $600k or $3k/mo for rent.  The North End neighborhoods such as North Slope historic district, Old Town, Proctor, Stadium District are very desirable with safe communities with great schools (Bellarmine Prep for highly-rated private school option).  When people speak of the rough neighborhoods they are typically referring to the South, South End, East Tacoma and Hill Top areas.  Just like Seattle, there are less desirable parts with high crime and issues.    

Tacoma checks all the boxes for you.  Large hospital options for your wife, close to JBLM and growing small/medium sized businesses.  We also have gained a lot of new breweries and restaurants over the last 10 yrs from Seattle based owners looking for lower costs + growing demand.  And you'll have easy access to boating, hiking, skiing and all the outdoor activities.

I also love the Poulsbo and Silverdale area but if you need to be close to JBLM that would be a brutal commute.  Gig Harbor is really nice with excellent schools but misses the growing small/med biz need.  You'd likely be commuting into Tacoma.  

Also check out University Place.  Great school district and very safe neighborhoods.  

This is why Tacoma is the hottest real estate in the US right now and high-income households are migrating to this area - you get all the good parts of Seattle for half the price. Unfortunately, $600k in Seattle for a SFH is typically going to land you in the least desirable neighborhoods with the worst schools. Unless you are willing to live in 1k sq ft home that likely needs some updating and TLC.

Tacoma’s housing market is now the hottest in U.S. — and Seattle knows why

https://www.seattletimes.com/business/real-estate/tacomas-housing-market-is-now-the-hottest-in-u-s-and-seattle-knows-why/

Report from Redfin

https://www.redfin.com/blog/hot-housing-market-tacoma/

Well, if you are still wondering if Tacoma is still a hot market?  :)

https://www.seattletimes.com/business/real-estate/tacomas-housing-market-is-now-the-hottest-in-u-s-and-seattle-knows-why/