Make SURE you work with a commercial agent or one with considerable experience in working with rental properties. Preferably, the agent will have owned their own properties and has experience with property management, credit checks, leases, repairs, etc. Yes, any agent in the stte can assist you but is this the best person for the job? Remember location, location, location! If you would like a free consult let me know!

Jonny,

Are you looking to stay in the Seattle area with your investments or would you consider markets that have been turned into buyer havens like our market here in Phoenix? I have homes available here with built in tenants, great prices and a tremendous upside with your 5-10 year plan. I would love to discuss some possible scenarios with you if you are not restricted to the Seattle market. We can discuss ROI and your personal needs and goals to help determine what would be best for you here in Arizona.

I look forward to speaking with you.

There is a investment vs. profit curve, that is useful when considering an choice in investments. The bottom of the curve is raw land the top of the curve is developed income producing property. On both ends of the curve, the amount of profit you will make is less than in the middle of the curve where you are permitting, developing or remodeling. Of course the middle part of the curve is the most risky. Some markets are risky other are not, but more importantly it is the type of investment, not the market. Some investments needs a lot of work and effort on your part, others don't Take a look at what you like to do, and list the things you don't want to do. Do you want to collect rent from tenants who don't pay? Do you want to pursue high end renters who are very particular about the place they rent, and who move every year? Do you like dealing with government agencies to get permits? Do you like selling and promoting. Find the area of real estate that you like and stick with it.

Jonny,

This is the best time to buy real estate that we have ever seen. The reason is that interest rates are at an all time low, which has a greater effect on buying power than price.

The good news is that prices have dropped into a healthy affordability range. The challenge is, in Seattle, it is still difficult to get properties to cash flow at the standard 30% down, which is the barametor for calculating yield. As jobs pick up, the rental rate versus mortgage rate will even out. It's best to be ahead of the curve.

Since you are planning to hold 5 to 10 years, you will be in great shape. Seattle is in the top 10 of cities poised to recover from the recession. We will see Bank Real Estate Owned properties through 2010. Now that banks are healthier, they will start releasing inventory they have held off the market, because they are now able to take some of those losses - moreso than a year ago. This will tend to keep prices down.

In spite of all the press, if you draw a straight line on the appreciation graph, going clear back to the 1950's real estate is still on a 4% per year path. The Seattle market will appreciate again and so if you don't buy now, you will look back and wish you had.

There is no better way to build wealth and cash flow than through real estate. To do a thorough analysis, you have to factor in the power of depreciation and the amazing leverage you get from real estate that you don't get from any other investment. Also remember, real estate will never ever go down to $0.00.

As you know, real estate is a local market and even varies by neighborhood. I would be happy to consult with you, based on your investment goals, what would be a good investment for you. It all depends on your personal goals.

On my website is a great link, under Market Statistics to show the current market. I would be happy to answer other questions you have on sepcific locations and types of property that meet your investment goals.

Jonny,

I'll keep this short and sweet. The best time to invest in any commodity, is when everyone else is afraid to.

Conditions right now in Seattle:

homes have come down 22% from their highs according to S+P Case Shiller
interest rates are low
buyers are cautious and sellers are unwilling to list unless they have to
A significant amount of inventory is REO, short sale or distressed

It is likely that we will not see investment conditions this favorable for the remainder of my career.

Anecdotally, many times around my office in the past year agents have commented on how ideal the conditions are and lamented not having money to buy up as much property as possible right now.

Jonny,
As they say, "Buy low. Sell high." The trick is determining what is low and what is high. Certainly, we are inclined to believe this is the low with perspective to recent history. But should the market move further downward according to price not volume as several industry experts suggest then you might be inclined to wait a while longer. But if we have already reached the bottom and things are moving upward you've already missed. Problem is, the peaks and troughs are hard to perceive until they've passed. What really bodes better for a good return is your longer term perspective. Seeing a home purchase as a 5 to 10 year investment these days is simply wise.

Whether this is the right time more likely comes from elements outside of housing prices. Mortgage rates are near historic lows making rental payments more likely 'to pencil out'. Of course that depends on the rental market and whether rents are moving upward or downward. So it is wise to see what the trends are so you know what to expect. Rents for single family homes are the hardest to determine since there is no official repository of this infomration unlike apartments and multi-plexes. One good source you can try is http://www.zilpy.com www. It's compilation of multiple source information seems to do a reasonable job of projecting the rental income for a particular property. Of course a rental history of the property is the best indicator and reviewing a seller's respective Schedule E is advised.

Lastly I would suggest taking a hard look at what the local economic forecast is. Job opportunity and growth industries are a big indicators that an area that will not only bounce back from the recession first but also maintain growth for years to come. Seattle with its technology laden industries and health care foundations and research groups may be just the right mix for a rosey future. Of course our aeronautics suppliers and manufacturers are important too but more susceptible to economic cycles.

So you can see that your question doesn't have a simple answer though you have the correct approach and are already considering the right elements to make a prudent decision.
Best of luck,
Steve

Hi, Jonny
There is a lot of potential now in Seattle and surrounding areas. Condo market has huge inventory, you can find great opportunities to invest.. There are great homes on the market as well that need new owners. As for locations - there is just too many to pick from, depending on your investment budget. Would you mind shareing what it is? Once I have nymber in mind - I can help you better. It might be Issaquah Highlands starter home near park-and-ride at I-90, one of the Kirkland's neighborhood near new Google or some of the N.Seattle townhomes in Ballard. And if you are going for a high end properties, than it's a whole different market with slighly different approch to take. So where do you want to go?

Here's a good article from CNN Money on why Seattle is one of the best recovery bets for Real Estate:

http://money.cnn.com/galleries/2009/real_estate/0910/gallery…

For me personally, family style homes in safe neighborhoods have worked best. My homes rent well and are easy to sell if need be. There is always demand for safe family style homes for sale or rent..