If you search for the best investment options right now, you’re most likely to find real estate investing on the list. What makes real estate investing very attractive is the rate of return on investments you can gain from it, as well as the passive wealth you can build over time. To make the best out of real estate investing, you’d also have to find the nest real estate markets across the country. Right now, Seattle is among the hottest real estate markets in the US.
Whether you’re a first-timer or an experienced real estate investor, you can use these tips to navigate Seattle’s real estate investment industry:
Do Some Research and Stay Informed
It always pays to think before making a move. In the case of real estate investing in Seattle, you have to stack up on knowledge about the city and its real estate industry before taking a plunge. Read books, articles, and real estate news for updates on Seattle real estate investing trends. This will give you an idea about the status and nuances of the investment market you’re about to enter. If you’re new to the world of investing, it’s best to enroll in courses or seminars about real estate investing. Investment gurus can provide you with tips and guidance on how to start your investment journey.
Consider Turnkey Rental Properties
Rental income is a good way of earning a steady stream of passive income. You can invest in a home or an apartment that requires a bit of fixing and have a contractor renovate it. Once it’s fixed, you can turn it into a turnkey rental property that is ready for tenants to occupy. However, this can be quite challenging as rental prices are soaring in Seattle. The rise in rental prices is due to high tax rates in the city. But this doesn’t mean that it’s impossible to earn revenue from this kind of real estate investment. If you want to hold on to a steady passive income, you’ll have to lower your rental rates enough to keep tenants from leaving and keep the property at its best shape.
Pick a Property Type
Knowing the type of property that you’ll be investing in will help prepare you on the scale of management and responsibility it takes for its upkeep. You’ll also have a better idea about the return on investment it brings. Some of the common types of properties you’ll find in Seattle are:
- Condo – You can invest in one or more condo units. You’ll be responsible for the maintenance on your units and also pay monthly dues like other condo owners for the upkeep of other condo facilities.
- Apartment – Investing in an apartment building can be quite costly, and it requires a tremendous responsibility, but it can also bring in more cash flow. You’ll need a property manager to help you handle this scale of investment.
- Townhouse or Single Family Home – All renovation and maintenance responsibilities are up to you, but you can focus on one property.
- Multiplex or Multi-Family Home – It’s quite similar to a single family home, although it is multiplied into the number of homes you’re investing in. This is also quite similar to an apartment in that you’ll need a property manager’s help.
Carefully Assess the Property
You can’t just go for any property that’s available in the Seattle real estate market. It’s best to seek guidance from property inspectors and real estate agents for the best deals. You don’t want to end up in money pit investments on your first attempt. Money pit investments eat up your money without giving any return on investment. A property inspector can also help you assess the properties you’re planning to buy so you can avoid those that require costly repairs. You also want to make sure that the actual property is the same as how it’s shown in the ads, so making an ocular inspection is always a must. Real estate agents can help you find properties at the best price.
Look for Areas Near Transport Hubs
Potential tenants and buyers moving to a large city like Seattle will prefer real estate properties that are near or easily accessible to the workplace, school, or malls. This is a piece of important information to consider when you’re investing in real estate. You’d want to choose properties that provide quick access for commuters to bus stops and train stations. This is especially relevant in Seattle because there are plans for Light Rail expansions in the city. You can attract both tenants and buyers easier if you can invest in a property that’s located in a strategic area like this.
It’s important to mention that Seattle’s real estate prices are considerably high compared to other cities. This is because of the rise of the tech industry in Seattle. From ship and airplane manufacturing, many tech companies have also found a home in this seaport city. Big names in the tech industry like Microsoft, Amazon, and Costco are bringing in more investments and people seeking employment into the city. This surge of people has caused the demand for properties to soar and many are getting sold fast. If you’re determined to invest in Seattle’s real estate market, now is the right time before quality properties become scarce.
These tips should help you get a good start in Seattle. It’s no doubt that Seattle is an excellent choice if you’re a real estate investor. The city continues to grow, and it’s high time to take advantage of this. Real estate prices are projected to climb for the next few years across different states. But when you’ve finally secured a base on a specific area, your investment can weather any rise and fall of real estate prices.