Originally posted by @Scott S.:
Originally posted by @Rudy Manna:
How is East Tacoma, say east of Portland Ave E? I am finding some decent deals three. The neighborhood seems decent from the drive-by looks, B-/C+ range. Any thoughts?
Like the South and South End of Tacoma it has many older, charming craftsman style homes but overall it's a very rough, undesirable area and the school ratings are some of the worst in the state at 1-3. That East area generally has even more crime problems than the South and South End of Tacoma.
As many others have noted not all blocks are the same and some are certainly better than others. You really need to have boots on the ground and drive the location and talk to neighbors before you jump in. And just driving by once isn't always enough. The entire area can be really deceiving and give an impression of being a safe block until you spend some time there and see what really goes on.
I've lived in the South End, Central and now the North End. While living in the South End I had to contact police numerous times due to constant drug deals in the neighborhood, people passed out on the sidewalk during the day, gun shots, etc. A lot of house break-ins as well even during the daytime. I will say Tacoma police were always very responsive and quick but personally I'd never live there again. Walking after dark I'd often run into sketchy people and I felt unsafe. My wife and I knew some friends that lived in the South End area and they left after her husband was robbed at gunpoint walking to the store.
Living in the North End is such a better experience all the way around. I never feel unsafe and can walk anywhere after dark and don't feel intimidated.
I don't know anyone with rentals in East Tacoma but I would imagine you'd need some thick skin and wouldn't be for everyone. I have friends that own SFR rentals in Central, South and a 4-plex in the North end and they never have problems finding a new tenant. The rental market is very strong right now and has been for sometime. I listed a Central and South SFR for a friend about 4 yrs ago and had a lot of interest and filled them no problem. The South home was recently listed again (the current tenants bailed and moved to the North End after stating the block was going downhill) and I believe he had around 30 people contact him just in the first few days.
I think I would rather own a SFR than a multi in the South, South End, East Tacoma just due to the type of tenant it's going to attract. Multi's in the North End would be ideal in any location, IMO.
I think we have to put things in perspective. Tacoma, minus North side, has high crime rate. period. That's the precise reason Tacoma is a playing field for investors. It's got good cash flow opportunity, BRRRR opportunity, and growth rates leading core Seattle area. There is money to be made. In fact Seattle price increase are taking a breather, and whether its a breather or leading to a correction, that time can only say, but I think Tacoma prices will steadily increase at least over the next year. The reason simply being Tacoma prices took a heard beating in the downturn and still lagging 2007 peaks.
The people that live in Tacoma (again minus North) are people making 30-50k grands a year, looking for clean place to live, without violent crimes. For this audience all I need is find a decent looking neighborhood, that are not absolute trash. In my opinion, any houses that fit this bill, and fits 1% cash flow rule along with walk in-equity is good deal. I wont try to generalize based my own point of view.
