This year we have seen record breaking sales prices and an increase in investors buying multi-family properties. Due to the increase in demand, prices have gone up significantly.
While the value of real estate has gone up, so have rents.
According to Zillow rents in the greater Seattle area have gone up 5.4% YOY and other areas have gone up even more, like Everett at 7.2%. What we do is research the areas where the price to rent ratio is favorable for investors to generate a higher yield.
In this hot market there are still opportunities for investors. There are two great options in this market:
- Sell any investment properties, using a 1031 exchange, that either require a lot of your time and attention or that do not cash flow as much as you would like.
- Purchase value add properties and benefit from the increased rents and still low interest rates for a higher return on investment
This spring I sold two of my single family rentals that between them were cash flowing $580 per month for two duplexes that each produce over $1000 per month.
Moral of the story is there are still deals out there, you just have to work with the right team that knows how to find them. Just this week we found three value add properties with 10% ROI.
If you are interested in receiving our deals send us an email at email@example.com