Buying an Investment Property to Rent

Buying an Investment Property to Rent
Video Transcription

Are you looking to invest in Tacoma, Washington? It’s a great place to own a rental. As a investor for the last 25 years, most of my properties are located in Tacoma, Washington. And because of its economy and some other distinct factors about Tacoma it makes it a great place to invest. Few things you want to think about when you’re thinking about investing your money into longterm real estate, buy and hold rental properties. You want to create a property investment strategy. First, You want to think about demographic. Look at your city and ask yourself are people moving in or are they moving out of our city? Do you hear about companies coming in or are they moving out? So it’s a traffic of people. When people are moving in to the city, then it creates a supply and demand issue where you have more demand than you have supply, which increases the value of your property over time. When people are moving out or companies are moving out of your city, that means there’s going to be more supply than demand which is going to create a downturn in the value of your property over time.

The other thing you want to look at is the amount of land that’s available. In Tacoma, Washington we have very little land you have to go pretty far out to find a lot. So we are a little city that’s surrounded by mountains. We’re surrounded by water and there really isn’t a lot of available land. So again, we go back to the supply and demand issue where there’s just not as many homes for the amount of people that want to live here. And if you do want to build, you have to go pretty far out to find property. Again, that’s going to create a supply and demand issue and over time, the value of the homes that are located right here in the city are going to go up.

The other thing that you want to look at is the amount of jobs that are available. Are people working? What’s the unemployment rate? What is the average cost of living in Tacoma, WA? So jobs bleed money into the economy and when people have jobs, they have money to buy homes. The other thing that you want to also look at is the proximity to another major city. With only being about 30 some miles away from hustle, bustle, Seattle, we have almost everything that Seattle has. We’re just a little bit smaller, but the location is that we can get to the major city if we wanted to. The airport is close, we have amenities, we have offerings. It’s a desirable place to live. So you want to look at those really basic factors.

What about the economy in Tacoma? We’re considered a port city, meaning there’s supply coming in from all over into our port, that creates jobs. So we’re somewhat of a hub and it’s affordable to live here. The housing is keeping track with the wages that people are making so they can afford to live here either rent or buy. So those are some factors to think about if you’re looking for a city to invest in, think about Tacoma. I’ve invested here for over 25 years and I’ve seen the stability of what Tacoma has to offer. And it’s one of those places that checks all the boxes. So I hope that’s helpful.

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