Real Estate investors looking for cash flow and appreciation continue to love Washington state to build rental portfolios. The Evergreen State is a current favorite of real estate investors due to many factors including a strong economy, large population and natural beauty that drives year-round visitors! Easy Street Capital is proud to be a leading provider of investment property loans in Washington for real estate investors looking to build rental portfolios!
Types of Investment Loans in Washington
When it comes to real estate investing in Washington, there are diverse markets and types of investment property loans to choose from. Washington has a lot of older properties with great bones, but in need of renovators to restore them to their former glory. For investors adept at rehabbing older properties, hard money renovation loans are a perfect choice! These loans allow you to buy a property quickly and finance your rehab costs as well! Once you are done, you can either “flip” the property for a quick profit or pursue the BRRRR Strategy by renting it out and then refinancing into a long-term, low-rate DSCR loan!
Long-term DSCR Loans are also great for investing in turnkey rental properties. Turnkey refers to properties that are rent-ready and require no renovations. Move-in ready single family homes and fully furnished short term or medium term rentals are great for cash flow and price appreciation. Most DSCR Loans are fixed rate for thirty years, locking you into a fixed interest rate for the long-term. While, if historical patterns continue, rents and appreciation increase steadily each year. These are a great tool to steadily build wealth over time through real estate. Using investment property loans can help speed this process.
Where To Invest In Real Estate In Washington
Washington is a favorite market for real estate investors because of its many varying options. There are lots of diverse market types that offer great potential for each type of real estate investor. Seattle is the largest city in the state and the business center of the Pacific Northwest. Spokane, located in eastern Washington, offers affordable prices and a strong job market. Tacoma is an up-and-coming city with a growing economy and affordable real estate prices. Its proximity to Seattle also makes it an attractive location for commuters. Located just across the river from Portland, Oregon, Vancouver offers more affordable real estate prices compared to its neighbor. Finally, Cle Elum is a smaller town that offers great short-term rental opportunities.
Seattle
Seattle is the largest city in Washington State, with a population of over 750,000 people. The greater Seattle metropolitan area has a population of approximately 4.2 million, making it the 15th largest in the United States. The city has a diverse and thriving economy, with a strong focus on technology, healthcare, and education. It is home to several Fortune 500 companies, including Amazon, Starbucks, and Microsoft. These major companies provide a solid employment base for renters. The city and surrounding area is also home to several world-class universities, such as the University of Washington and Seattle University, which attract a large number of students and young professionals who need rental properties.
Seattle’s strong economy and diverse population make it an attractive market for real estate investors. The city’s growing job market and population growth create a steady demand for rental properties, with opportunities for long-term leases, medium-term rentals, and short-term rentals. The tourism industry is also thriving in Seattle, with top attractions such as the Space Needle, Pike Place Market, and the Museum of Pop Culture. The city’s vibrant culture, beautiful scenery, and sports teams such as the Seattle Seahawks and Seattle Mariners make it a popular destination for visitors. This provides a robust market for short-term rentals.
Overall, Seattle’s strong economy and diverse attractions make it a great market for real estate investors looking to invest in single-family and multifamily properties. For more information on investing in Seattle, check out this recent piece on BiggerPockets – “Is Seattle A Good Market For Real Estate Investing? Here’s The Latest Trends.
Spokane
Spokane is located in eastern Washington and has a population of over 225,000, making it the second-largest city in the state. The city has a diversified economy, with industries such as healthcare, education, and manufacturing front and center.
Real estate investors can find affordable investment opportunities in Spokane, with the median sales price for a single-family home in March 2024 at $373,900, according to Redfin. In addition, Zillow reports that the average market rent in Spokane in May 2024 was $1,481 per month, making it a lucrative market for rental properties. Investors using investment property DSCR loans can take advantage of low down payment options and earn substantial cash flow with potentially high cash-on-cash returns.
Spokane also has several cultural attractions, such as the Northwest Museum of Arts and Culture and the Spokane Symphony. The city’s location in eastern Washington also makes it a desirable destination for tourists throughout the year, with outdoor recreation opportunities such as skiing, hiking, and boating in nearby areas. This provides a robust market for short-term rentals, especially during peak tourism seasons.
Overall, Spokane’s diverse economy and attractive cultural attractions make it a great market for real estate investors looking to purchase investment properties. Investors can capitalize on this growing market and achieve strong returns on their investments.
Tacoma
Tacoma is a growing city in western Washington with a population of over 215,000. Its located on the shores of Puget Sound and is surrounded by beautiful natural scenery, including mountains, forests, and waterfalls. The city has a diverse economy, with industries such as healthcare, education, and manufacturing playing key roles. It is home to one of the largest deep-water ports in the United States, making it a major center for international trade.
Tacoma is also home to many cultural attractions, such as the Museum of Glass and the Tacoma Art Museum. Its vibrant downtown area has many shops and restaurants that attract both residents and visitors. Additionally, it has a thriving craft beer scene, with numerous local breweries and taprooms.
Real estate investors can take advantage of both long-term and short-term rental demand in Tacoma. The city hosts big events such as the Washington State Fair and the Tacoma Dome’s numerous concerts and events. Tacoma is also home to Point Defiance Park, one of the largest urban parks in the United States. The park features a zoo, aquarium, and miles of hiking trails. These bring in visitors and provide a great opportunity for short-term rental income.
With its proximity to Seattle and Portland, Tacoma offers a prime opportunity for investors looking to get in on a growing market. The city’s growing job market and population growth create a steady demand for rental properties, with opportunities for long-term leases, medium-term rentals, and short-term rentals. Overall, Tacoma’s diverse economy and attractive cultural attractions make it a great market for real estate investors looking to purchase investment properties.
Vancouver
Vancouver, Washington is the fourth largest city in the state and located on the north bank of the Columbia River. It is located across the border with Washington and is not to be confused with Vancouver, Canada, on the northern border of Washington State. Vancouver is popular among real estate investors, especially in consideration of the “border economics” with nearby Portland, Oregon. Due to Oregon’s high state income tax but no sales tax, many people like to live in Vancouver and shop in Portland. This allows for Vancouver’s housing market to reap the rewards of Portland’s thriving economy!
While Vancouver, Canada is notorious for unaffordable real estate, its namesake in the US is much more affordable. According to Redfin, the median sales price in Vancouver in March 2024 was just $485,000, in line with national averages. With a steadily growing population and numerous cultural attractions, Vancouver is a smart choice for real estate investors looking to capitalize on a growing market
Cle Elum
Cle Elum, Washington is a picturesque town known for its natural beauty and outdoor recreational opportunities. Its location in the Cascade Mountains attracts visitors for skiing, hiking, and fishing. Cle Elum also has a strong vacation rental market, with consistent rental rates throughout the year and peak seasons during the summer months. The town hosts events such as the Timber! Outdoor Music Festival and the Suncadia Harvest Festival, which bring in more visitors and rental income
AirDNA, the leading data provider for investors in short term rentals, gives Cle Elum a Market Grade of B+. It gives a sky-high 96 rating for “investability” meaning a great option for STR investors. Per AirDNA, investors can expect annual revenue of over $113,700! The market overview also shows an average daily rate of $758, indicating its great potential for high-end vacation rentals. Investors that use DSCR loans from a forward-thinking lender like Easy Street Capital that qualifies the income of the property using AirDNA projections can likely rake in the cash flow.
Ready to Get Started?
Ready to invest in real estate in Washington? Easy Street Capital is top lender for investment property loans in Washington, both hard money rehabs and long-term rental properties.
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