Income-Producing Properties

I Know Investment Property

I LOVE talking about income-producing properties. Real estate is a fantastic investment medium. Why?

  • Regardless of what is happening in the economy, the job market, politically, or even with foreign policy, people need somewhere to live.
  • Underbuilding in our country for over a decade has made housing a scare commodity – not a trend that can be changed easily.
  • Even as depreciation affects the structure of the home, with the changes that are occurring in Washington as they pertain to housing density, your property without the structure can become more desirable.
  • Tax Benefits
  • Ability to control your investment (you decide what to improve and what to charge – not like investing in the stock market at all) 
  • Real estate is the only investment in which you can leverage a small amount of money to buy a higher-value asset and then receive appreciation on the entire asset. Try buying a tech stock for 20% of its value. 
  • You not only can get long-term appreciation, but monthly cash flow as well. 

    •  Check this out. This is a real investment property in Bellingham purchased in 2019:

Check This Out

This is a real investment property in Bellingham purchased in 2019:

Purchase Price 8/2019$499,000
Financed$376,000 at 4.75% for 30 years
Monthly Principal & Interest Payment$1,961
Monthly Rent When Purchased: $2,775
Improvements in 2020 (flooring, paint, kitchen cabinet refresh)$14,218
New Monthly Rent Received After Improvements in 2020$3,475 – an increase of $700/month or 25%
Market Value as of 7/2023$744,000 - a $245,000 gain over purchase price in just 4 years (49.1%)

Strategies for Today's Market

You might be thinking, “Hey, that is great for this owner, but that was back when prices and interest rates were lower.” 

You are right. But there are always up-and-coming areas with lower prices. And demand in our area has, over the last decade+, caused market values to appreciate well beyond what you might pay in interest. Buying an investment property is a long-game. With your goals in mind, we can work on a strategy that will get you closest to meeting them based on the numbers we have available.

Generally-speaking, there are two types of income-producing properties: long-term and short-term rentals. I actually own both types and there are pros and cons of each. Read more about these on the Long-Term Rental and Short-Term Rental pages. There is also a big opportunity in our area with the passage of HB 1337 – ADUs and DADUs. What’s great about these is you don’t need to buy a new property as an investment. You may be able to build an investment property in your very own backyard! Read more here. 

I look forward to helping you strategize on buying an investment property!