All Forum Posts by: Brandon Vukelich

 Agreed with Brian and you are on track with Bremerton, more and more ferry commuters.  Kitsap County's median price is actually slightly higher than Pierce Co at this time but both are experiencing year-over-year double digit appreciation.  WA itself isn't "scary" but Seattle definitely wins there.  Despite what others say, there are returns to be made.  If you're new, I suggest staying local and hiring a professional prop mgmt firm as you learn the ropes.  Yes, there are higher returns available across the country but the Puget Sound economy is strong.  Thankfully we all don't want to invest in the same area for the same thing.  I encourage people to buy as many "doors" as they can afford.  Go in for the cash flow and ensure you are funded with reserves, appreciation is on paper and a bonus in my opinion.  Best wishes on your goals!

Hi Valentina, yep... Seattle is expensive but it's not just the prices, it's the crazy laws that are not so friendly towards landlords.  We sold our Ballard property two years ago and invested in Boise, ID. Now Boise is just as hot as Seattle. We do also own in Tacoma and I work with investors down on that area. My personal opinion is to stock to your local area as much as possible, until you know more about managing rentals. Yes many markets are more "affordable" but they also may not see the appreciation we have in the Puget Sound. It ultimately depends on your investing goals. Also, keep in mind when investing out of state, you need a solid PM partner. Ours is good but we still fly to Boise once a year to check on the property.

@Smita Rahatadkar it definitely depends on the neighborhood in Lakewood.  If you want to send me a PM with the address, I can check more accurate comps for you.  Rough estimate for a 3-bed in Lakewood will run $1650 to $2300.  Not sure I understand your question about leads.  If you are leasing it yourself, you'll receive plenty of leads from Craigslist alone.  Of course, depends on the quality of your property, terms, pics, etc.  With all of the potential liability in leasing and managing, it is always best to consider hiring a professional management company but you are not required.  I have a good one to refer in Tacoma or you'll most likely find good referrals here on BP.

Curious why you're looking at a 3-bed/3-bath home?  Have you considered getting more units for your money such as a duplex or triplex?

@Tyler - correction to your post, we do not have a state income tax in Washington.  

Yes, the greater Seattle-Tacoma market is super hot, has been for long time now.  Very competitive but strong rents and appreciation.  Seattle itself is already rather anti-landlord and getting worse every year.  Most other cities in the area haven't gone completely insane like Seattle.  We do appear crazy expensive compared to a majority of other areas in the US.  Even so, investors keep buying all around the Seattle-Tacoma-Bellevue metro area.

@Abhishek Prateek Some good input from the group already posted here.  I had my own property management business in Seattle and have owned/managed several rentals.  From my experience, especially in Seattle, it is best to hire a property manager.  Put the liability on their shoulders while you learn how to be a solid landlord.  Joining the Rental Housing Association would be a very good investment in your time and money.  Great resources, leasing docs, classes, etc.  

Just my two cents, I would purchase as many units as you can afford that will cash flow (at your comfort level).  Whether that's a duplex, triplex, etc. that nets $300+ per month, I always feel that's the better route than a single family property.  Unless you come across a steal that it too good to pass up in an up and coming or highly desirable area.  Also, some of the best advice from a BP podcast was to budget a 15% drop in rents when analyzing a property.  If you can sustain a 15% drop in rents and the property would still be positive cash flow, you're generally going to come out safe in market ups and downs.  I don't worry as much about appreciation.  That's a nice bonus if you get it but I focus on the cash flow and how to always work on improving that net figure.

Of course, there is not right or wrong answer. You should invest as you are comfortable based on your short or long term investment goals.  Thankfully, we all don't want the exact same thing. Best wishes on your goals!

Congrats @Michael Stout and welcome to the Puget Sound! I live in the Auburn area with a co-working space in Tacoma. I'm down there all the time. Happy to connect and swap investing stories. My brother and I did our first BRRRR last year in S. Tacoma and closing on our first Airbnb property in Ruston this month. I'm always open to meet up for coffee (or beer) and chat real estate. Best wishes on your goals!

 Hi Charito, Sorry to hear about your first investment experience.  I don't believe any investor has a perfect record, me included.  In 2011, I was feeding a 6-unit in West Seattle $500/mo, got scared and sold. I lost nearly a million in potential appreciation if I would have held out just a few more years.  There may be a way to turn this deal into a positive experience.  I follow the multifamily market between Seattle-Tacoma very closely.  I would be happy to review your situation offline, no strings or pressure.  I love analyzing deals and running numbers. Best wishes on your goals!

PS - I have a friend at King Co Metro downtown, any chance you know Keith Rodmyre?

Thom, I'm very familiar with the South Sound market and happy to connect to offer any input or guidance. There are always opportunities out there, even in hot markets for new investors.  Yes, our returns may be lower than other parts of the country but Seattle-Tacoma is a strong economy, increasing rents and solid appreciation.  My 2 cents is that anything you buy should cash flow from day one and don't purchase on "potential" rents or appreciation.  Send me a message if you'd like to meet up for coffee or something this month.  Best wishes on your goals!

Have you been staying on top of the news on Seattle regarding landlord-tenant laws? I refuse to invest there and advise others to look elsewhere. Yes, it is a solid market for rents and appreciation but not worth the risk in my opinion. There are definitely better opportunities in the greater Tacoma area but the market is hot. Smaller 2-4 unit deals move quick, no time be a tire-kicker. CAP rates are around 5.5%, higher in certain neighborhoods. Depending on the specific area, you can generally pickup a duplex for mid $300's, a triplex for low to mid $400's but most decent fourplexes are going to run $550k-$650k. Sorry, don't know much about Olympia. Feel free to connect or reach out with a DM anytime. Best wishes on your goals!

Hey Curran, let's connect via a direct message so we can swap numbers and chat.  I'm in the Tacoma market and happy to meet up for coffee and discuss.  Cheers!