House as an investment
Budget 600K (20% down maybe possible), not planning to live in it. Looking to invest. 1. What area would be affordable and at the same time give me the most appreciation? 2. What area would be able to fetch me a rent close to my mortgage (if not same or higher) 3. Is this even the right time to invest in real estate in WA? Will the market correct soon? Should I wait? Any money I spend is not spare money that I have, so have to be very careful with risks. Please help :)
Why not New York City, outside the city though.
Washington only.
Get a condo in SLU, South Cap Hill, South Queen Anne, downtown Bellevue. Don't buy middle of nowhere investment property - you buy middle of nowhere SFH only if you want to live in it
With condos the demand is less than supply for renters. So as an investment I have to pay more out of pocket towards the mortgage as the rents average is too low.
Been there, done that less than 2 years back. Rent pays for all expenses +/- 100 USD. I'm not sure where you get this math though. Investment property is going to be rented by people who don't have money to buy - aka, new H1B SDE age 25-28. It's definitely a less risky proposition than middle of nowhere SFH, like Renton or Bothell, where the 35 year old person likely to rent it already has enough to pay the downpayment to buy.
Have you ever put in an offer lower than the ask and were accepted? What's your strategy there? I am sure I won't be in the 'I love this house' situation as I don't wish to live there.
Never, ever but a rental that isn't cash flow positive
600k budget for 20% down payment or 20% down for 600k house? 600k is more like a 1200 sqf townhome price in the city limits or maybe a 1500-1600 sqf sfh in Bothell and further up north. South of SoDo can give you more square footage for that money.
Fyi, I am selling my investment property in Magnolia now. It was only profitable for me to rent it out as I bought it in 2008 for 40% of what it's worth now. I am not planning to reinvest into real estate right away now. Unemployment rate is slightly up from the bottom lowest now in Seattle and WA. I am looking into tax lien certificates now as real estate taxes skyrocketed. If real estate market collapses I will reinvest into real estate.
I bought my house under asking. Was listed too high and sat. Low balled and got a deal. You can get a small 2 bed home in North Seattle (south of northgate) for that price. List similar to apartment/condo price but get better ROI sans HOA and special assessments. If market tanks, families no longer able to buy or who lose their homes still need a place to live and often prefer to rent a house vs apartment. You could also always move in too if needed. Get at least two beds regardless. Absolute worst case with markets, move in and get a roommate to wait it out. Low risk, high ROI.
I thought you should have atleast 25% down for an investment property these days
Buy it and also Airbnb it out to someone
Bothell is super hot right now and yes, this is the right time to invest. The rate at which the prices are appreciating is impressive. It is certainly not a bubble. Moreover, the interest rates are going up too. Just within the last 6 months, rates went up from 4 to 4.6 on a conventional 30yr fixed. Better lock em up before it goes up even more.
That means do not invest there? Right?
That’s my thinking too heh wait till it cools down