All Forum Posts by: Steve Abercrombie

I think @Ryan Evans has a good argument about the broader Tacoma area, but there are still some pretty significant neighborhood differences if you go 30 blocks south, east, or west. I have looked at a lot of SF and MF properties from Lakewood to North Tacoma from the water to east neighborhoods. Personally, I don't love South Tacoma (around the mall) nearly as much as I like areas closer to Lakewood. There are some very good discussions from 6 - 12 months ago where the fundamentals haven't changed. 

There is a lot of older MF stock that is clustered close to the mall. Malls in general are dying, and Tacoma mall is anything but a lifestyle center that is drawing new business or clientele. Funny how these cycles go as the mall killed downtown 30 years ago, now downtown is quickly coming back to kill the mall... Everything I have seen about demographic preferences indicate people want to be close to a neighborhood center, I don't see the zoning or population in the mall area coming around to attract a quality tenant base that allow differentiation between new construction over the older stock in the area.

Heading south you have stronger influence from Joint Base Lewis McChord and a lot of upgrades going on in local neighborhoods including University Place and Lakewood. Closer to downtown you have everything that Ryan mentioned. If you are still in the City of Tacoma, permits and construction costs are not much different between areas closer in and further south. 

All of that said I prefer areas just south of hilltop (still a lot of vacant land on the hill south of 19th). New places like 7 Seas Brewery are going to anchor that area. I also like some of the eastside neighborhoods in South Tacoma. They have some rough edges, but the commercial districts are starting to see investment and land and houses are still pretty cheap. With a 12+ month window to get units rentable I think there are good bets there. Schools are still a challenge throughout the city, so family-focused units are going to be a tougher sell for a while.

I'm interested in Tacoma Multi-Family and would love to hear other investors opinions about the Tacoma market. I currently own a duplex in the central area and am actively seeking to acquire multi-family properties from duplex to small apartment complexes.

I have been seeking units mainly in the Central area (around 6th south), Proctor, and the north end. I still see those as the most attractive areas for a balance of value, rental demand, and appreciation potential. I have looked at a lot of units on the south end, cashflow is decent, but the renter pool and long-term appreciation / demand are less attractive to me.

I'm also really curious what folks think about multi-family in the Hilltop area. A lot of investors are rehabbing places and commanding premium rents and seeing what look to be strong returns via BRRR. With the announcement of a major upper market apartment complex coming in, are they concerned about that approach over the next couple of years?

UPS just announced a new shipping facility with several hundred jobs in Tacoma. That is another plus in the market. I'm targeting middle-income properties with strong cashflow (1% rule as a guide) with one exit plan to be rehabbing up market or preparing for sale to a turnkey/retail investor.

It took me about a year to find a deal (or longer depending on who is counting). My wife and I started looking for a multiplex to house hack in 2012 when we moved to Olympia. After seeing more than 60 properties and losing offers on 3 we bought an SFR.

We started looking for a rental at the beginning of 2016 and will close on a duplex in Tacoma next week. During that time we analyzed too many deals to count (auction, MLS, and off market), walked 20 + properties, and lost an offer on one other property. We found our duplex from another investor via Craigslist and bought it without an agent with the help of an attorney.

I'm planning to attend, but will be traipsing down from Seattle, so I may have to skip the meetup if traffic is bad.

Naomi -  Looking forward to another meet up. Celina and I will both attend.

Welcome to Bigger Pockets! There is a BP meetup that has just formed in Olympia. The next meeting is May 26. @Naomi Pinger is organizing the meetup here in town. It will be good to see you there.

Naomi - thanks again for organizing. I'll be coming down from Seattle tomorrow evening, barring any traffic nightmares I will be down before everyone departs. My wife Celina is planning on stopping by as well.

@Naomi Pinger I would be interested in joining a meetup in Olympia as well. Let me know if there is anything I can do to help with organization.

@Charles David - Off the cuff here are a couple things I would recommend reading (or skimming).

1) The Northwest Green Home Primer by Kathleen O'Brien - a good intro to "what is green" and regional strategies.

2) "Understanding the Importance of Energy Efficiency in the Home Purchase Process" - Publication by the Northwest Energy Efficiency Alliance. Fiona Douglass Hamilton of SEEC has been doing a lot with valuing efficiency/green for appraisers and getting green items included in the MLS. It's long - but worth skimming the intro/conclustions. tl;dr - people will pay more for energy efficiency

3) Green Canopy Homes Marketing page. They have a green flipping strategy in Seattle. Different market than the south sound both consumer and investor. I find their business model really interesting.

@Kerry Smith - I'd love to sit down and talk green building over coffee. Let's try to connect in the near future.