Investing in Southwest Washington Real Estate: A Starter Guide for Newcomers

We probably don’t have to sell you on the benefits of real estate investing. They’re well-known already, and both residential and commercial property have become very popular forms of investment. Whether you’re looking to create a stable, residual income stream or seeking a long-term investment that will provide you with a substantial return over time, investing in real estate can be an excellent way to reach your financial goals and establish real wealth. 

However, breaking into the world of real estate investing can be difficult, especially if you are not sure what to expect from the market, the competition, or the sellers who are out there offering you their properties.

If you are looking to invest in Southwest Washington real estate but are not sure where to start, then this guide is for you. We love working with new investors who are excited about beginning their real estate journey, and we’d be happy to help you navigate the process. 

Set Some Investment Goals and Stick to Them

Every investor is different. The advice we are providing today is fairly general so that every type of new real estate investor can learn something valuable. However, your investment goals are going to be different and unique, and that means your strategy for success has to be just as nuanced. 

So before you dive in and start looking at potential acquisitions, make sure you know why you’re doing this. What are you hoping to accomplish? What does success look like? Are you most interested in a property that’s likely to earn you some positive cash flow as quickly as possible? Or, are you hoping to buy and hold a property until the mortgage is paid off and you’re earning clear profit from your rents? Is this a way to diversify an existing investment portfolio? Are you thinking about buying a retirement property for yourself, and you’ll rent it out while you wait to retire? 

There are so many good reasons to invest in real estate. Make sure you know what your own investment goals are, and how you’ll know that you’ve achieved them.

Educate Yourself on the Southwest Washington Real Estate and Rental Markets

Market knowledge is really going to help you get off to a good start. 

Before investing in any real estate market, you need to research the area. Get to know the properties that are available. Learn the rental values in each neighborhood. Find out where people want to live and what tenants are doing for work and for fun.

Southwest Washington is enjoying a real estate market that is experiencing a steady trend of growth. This region boasts a booming tech and manufacturing industry, making it highly attractive to both renters and investors. You don’t want to invest in an area that’s dependent on a single industry, stuck in a declining population, or struggling economically. Study the market and the housing prices. Get to know the trends and talk to people who have been successful investing here. 

Decide What Kind of Property to Buy

Once you feel like you know the market and its players, shifts, and trends, you’ll have to think about what you want to buy. Again – these investment goals will guide you. Don’t jump on a property just because you like the price tag or the neighborhood. Only buy what serves your investment goals. 

Maybe you want to earn as much cash flow as possible and minimize your vacancy risk. Multi-family properties and units might be your best bet. Or you can start with a single-family home, which can be an attractive and straightforward entry into the real estate market. These homes offer predictable cash flow streams and tend to be much easier to manage than multi-family properties such as apartments or duplexes, especially for a newcomer. We like single-family investments because you earn higher rents, and you attract stable tenants. There are benefits to those multi-family properties too, however, and your unique investment goals will direct you towards the best investment type. 

Analyze the Property’s Cash Flow Potential 

Before investing in any rental property, it is important to analyze the cash flow potential. Cash flow can be calculated by subtracting the total monthly expenses of a property from the monthly rental income. Make sure that the projected cash flow is enough to cover any additional expenses like taxes, insurance, maintenance, and repairs. Positive cash flow is an excellent sign that the property will be profitable.

It’s not all about cash flow, of course, and you don’t necessarily need to reject a property just because its cash flow potential won’t dazzle you for the first year or two. But this is a big part of investing; understanding what you’re likely to earn right out of the gate and judging whether that’s enough for you.

Location and Real Estate: It Matters

When investing in Southwest Washington real estate, the importance of location cannot be overstated. In general, properties located in desirable neighborhoods close to high-quality schools, restaurants, conveniences like grocery stores, and transportation tend to have a higher market value and more consistent rental demand. You should prioritize well-established neighborhoods that have shown consistent growth over several years, as they are likely to continue to experience steady demand.

Partner with Professionals