All Forum Posts by: Hailey Peterson

Good morning, Hailey,

Since you are here in Tennessee, perhaps go ahead and purchase here first. While no one knows how long values are going to increase in Tennessee, it seems like more people are arriving in Tennessee than are leaving, and that increase creates housing demand, whether they are purchasing or leasing. As such, if you can find a property where the numbers make sense for you and your investment objectives, I would encourage you to move forward. Too much delay May cause you to pay more in the future than if you move forward now.

I hope that helps you. 

@Hailey Peterson 

Totally understand the analysis paralysis, your first investment is a big step, and both options have their pros and cons.

Since you’re in Nashville, investing locally in Chattanooga or Nashville could be a great way to get started. Being nearby makes it much easier to oversee the property, build relationships with your property manager or contractors, and gain hands-on experience before expanding elsewhere. It also allows you to enter the market sooner without needing as much capital upfront.

On the other hand, if your long-term goal is to build a portfolio in Washington and you’re comfortable with lower cash flow (or even breaking even) in exchange for appreciation, then making that initial investment there could align better with your future plans. The key is making sure you can comfortably hold the property without relying on immediate returns.

A good middle ground might be to start with a rental in Tennessee to get experience under your belt, then use the equity and cash flow to help fund a Washington purchase down the road. Real estate is a long game, and getting started sooner rather than waiting for the perfect deal is often the best move.

Whichever route you take, you’ll learn a ton along the way. Best of luck, and feel free to reach out if you ever want to talk through things further!

Hey Hailey - I hear you—analysis paralysis is real! If your goal is long-term appreciation and you see yourself moving back to WA, it could be worth the higher upfront investment. But if getting started sooner and building momentum is important, Chattanooga/Nashville might make more sense. A solid local cash-flowing property could help you scale faster, making it easier to buy in WA later. Maybe start where it’s easier, then pivot when you have more capital? Either way, you’re making a smart move—just pick a lane and go for it!

Don't be a landlord in Seattle. 

The Washington state 7% capital gains tax doesn't apply to real estate. (It also doesn't apply to a bunch of stuff as well.)

Don't get me wrong. The capital gains tax is a stupid idea. But it targets the wealthy tech employees at Microsoft, Amazon, Meta, Google, etc.

Hi @Hailey Peterson, welcome to the BP Forum! You have a lot of company in your "analysis paralysis" affliction ;-) It happens to most REI when they first start out. I love that you are considering investing in an area you're from (or plan to return to), but given the great distance between your current location and WA state, I would highly suggest that you do your first (and potentially a few more) closer to where you live now. If/when you move back to WA state, it should be easier to manage those properties remotely...or you can always sell them at that point.

If we focus on a market closer to you now, what type of properties are you seeking, SFR, 2-4 MF, or 5+ MF? What is your price range/down payment amount? Are you looking for turn-key properties or something along the lines of a "fixer upper"?

Improvements get depreciated before or after converting to rental. So you should be fine either way. 

For small repairs, you might want to do this after placing the asset in service.