Long Term Rentals

Why Long Term Rentals?

Long-Term Rentals can be a steady way to grow your return on investment over time. In Bellingham, over 50% of the residents are renters, so there are plenty of potential clients for rental properties in the area and throughout more-populated areas in Whatcom County.

What’s great about owning a long-term rental? In addition to having more-predictable income than their short-term rental counterparts, long-term rentals provide both market value appreciation on the initial investment plus growing cash flow. Let me give you an example:

Let’s assume both monthly rent and market value grow at 5% per year. Although these numbers can actually decline, according to Credit Karma, the national average annual rental increase between 2017-2022 was 5.77% (although locally our increases were higher) and according to information derived from NWMLS, Whatcom County median sales prices increased an average of 12.2% per year between 2017 and 2022. But for this example, let’s use 5% for both to be conservative. Let’s see what happens to the market value of the property and rent over 10 years:

Purchase DateYear 1Year 5Year 10
Market Value$500,000$525,000$641,679$823,505
Monthly Rent$2,000$2,100$2,567$3,294

Holding on to this rental for 10 years has allowed the value to grow by $323,505 and the monthly rent to increase by $1,294. Considering the investor may have only put down $100,000, that is a return of 223% on the initial investment on the market value growth alone!

Intrigued? Read more by downloading my ebook below.

Get Your Ebook

If you like what you see and are ready to start discussing your long-term investment strategy and buying your first investment, reach out. We can run some numbers, take a look at current opportunities to get a feel for what is out there and refine your goals.

Download the Guide

Let's Talk

Fill out your information so we can reach out for a quick discovery call to learn how we can best service your needs.