Have you been thinking of buying real state in Snohomish, Washington? If so, that’s a great decision! Snohomish is an ideal investment destination.
As a landlord in Snohomish, there is opportunity for wealth as you will be receiving passive income every month. However, in order to be successful, you have to do it right!
Many real estate investors are considering investing in Snohomish for various reasons. Here are a few:
- There are plenty of desirable neighborhoods in the area, including Arlington, Everett, Stanwood, Marysville, and Stevens.
- The interest rates are comparatively low compared to past years. According to multiple studies, interest rates for both 15- and 30-year fixed-rate mortgages are just slightly over 3%.
- Real estate inventory is low. Basically, buying a home now means that it may be able to appreciate significantly in value over the next couple of years.
- In the last year, the average home prices increased by a whopping 15% in some parts of the city. Zillow, an online real estate marketplace company, predicts a strong property market this year. They are expecting at least a 10% growth in home prices in the coming years.
Now that you know why investing in Snohomish is a great idea, we will give you our top tips on how to do so successfully!
Top Tips for Real Estate Investments in Snohomish, WA
1. Choose the Right Location
A good real estate investment location has the following:
- High population density
- Good walkability
- Access to shopping malls and restaurants
- Access to public transportation
- Family-friendly events and communities
- Access to medical care
- Access to parks and leisure destinations
- Great schools
- Low crime rate
A location with these factors tends to have high demand for housing.
2. Understand the Costs Involved
As a new investor, understanding your investment costs upfront is key. There are more costs involved than you may realize.
For instance, one of the costs you’ll have to deal with is maintenance and repairs, such as:
- Controlling a pest infestation
- Fixing an electrical problem
- Repairing a cracked foundation
You also want to ensure that any repairs or upgrades are done professionally. It’s best to hire experts than to do things on your own. More often than not, DIY projects diminish the value of a home.
3. Avoid Buying Fixer-Uppers
If you’re just starting out, consider buying a rent-ready property. Generally, a rent-ready property is just that – ready to rent to a qualified tenant. As such, you may be able to rent it out as quickly as you’re done closing on it.
With a rent-ready property, you won’t have to think about contractors, permits, or refinancing. It’ll be stress-free and less time-consuming.
4. Arrange for Financing
After a prospective buyer makes an offer, a seller will normally require them to provide their financing details. So, before you begin throwing offers around, know how you’re going to finance the purchase.
There are various financing options, such as conventional loans and refinancing options.
To find which loan best suits your requirements, speak to a professional.
5. Think Through your Decisions
There is no denying it – buying a property is a big decision.
Many people, especially newbies, tend to get influenced by factors other than location, price, and resale value. And more often than not, this leads to potentially costly mistakes.
As a real estate investor, your decisions should be based on your goals, risk appetite and needs from a return perspective.
6. Understand the Landlord-Tenant Laws in Washington
This is a big one!
All states, including Washington, have landlord-tenant laws in place. The laws define each party’s rights and responsibilities.
As a landlord, for instance, you have a responsibility to ensure your property meets all the basic safety, health and building codes at all times.
You also have a responsibility to treat all tenants equally and fairly. For instance, according to the Washington state Fair Housing rules, it’s illegal to discriminate against a tenant based on race, color, national origin, marital status and familial status.
Other laws to keep in mind include:
- Security deposit laws
- Mutual covenant of quiet enjoyment
- Fair Credit Reporting Act
- The Lead Disclosure Rule
- Eviction Rules and Procedures
7. Hire a Professional Property Manager
Self-managing a rental property can be stressful, time-consuming and overwhelming.
It requires knowledge on how to market your property effectively, rent to the best tenant, collect rent efficiently and maintain your units properly.
That’s why hiring a comprehensive property management company may be a good idea. A management company can help you with all aspects of property management. That said, be sure to hire a company that has your best interests at heart.
At T-Square Properties, we do our very best to ensure our clients have successful real estate investments.
In Sum: Real Estate Investing Tips in Snohomish
Snohomish is a good real estate investment destination for many reasons. That said, there are various things you need to consider in order to be successful.
As an overview, here are our top tips for success:
- Choose the right location
- Understand the costs involved
- Avoid buying fixer-uppers
- Arrange for financing
- Keep your emotions in check
- Understand the landlord-tenant laws in Washington
- Hire a professional property manager
For expert help, contact T-Square Properties. We’ll be happy to help!