The Seattle real estate market is chock full of rental investment opportunities. Not only are Airbnb Seattle rental properties a popular choice among real estate investors, but long-term rental properties make for a great investment as well. This is mostly due to the high demand for such properties. Take a quick look at some of the real estate statistics that showcase this demand for Seattle rental properties:
- Price to Rent Ratio: 24. A high price to rent ratio (above 15) usually indicates that it’s more affordable for the average resident to live in a rental property rather than buy their own home.
- Renter Population: 55.4%. More than half of the population in the Seattle real estate market rents according to NeighborhoodScout. This makes for a large tenant pool.
As a result, the average Seattle real estate investment performs rather well when rented out to long-term tenants. Here’s Mashvisor’s rental data on Seattle:
- Median Property Price: $731,440
- Price per Square Foot: $500
- Traditional Rental Income: $2,592
- Traditional Cash on Cash Return: 1.5%
This may just confirm what you already know: the Seattle real estate market forecast is a bright one. And if you want to take advantage of it, you need to quickly learn how to find the best investment properties for sale in the Emerald City. To help you, we’ll take you through your Seattle property search step-by-step. First, let’s figure out which type of investment property brings the highest return on investment in the Seattle housing market.
What’s the Best Type of Seattle Investment Property?
Mashvisor’s real estate database includes many types of investment properties for sale taken from Zillow, the MLS, and other reliable sources. If you haven’t already decided what type of rental property you want to own in the Seattle real estate market, it’s best to look at the average return on investment for each property type:
Single Family Homes for Sale in Seattle
- Median Property Price: $826,466
- Price per Square Foot: $496
- Traditional Rental Income: $2,734
- Traditional Cash on Cash Return: 1.3%
Townhouses for Sale in Seattle
- Median Property Price: $689,527
- Price per Square Foot: $507
- Traditional Rental Income: $2,789
- Traditional Cash on Cash Return: 1.6%
Condos for Sale in Seattle
- Median Property Price: $403,156
- Price per Square Foot: $513
- Traditional Rental Income: $2,083
- Traditional Cash on Cash Return: 2.1%
Multi Family Homes for Sale in Seattle
- Median Property Price: $1,315,709
- Price per Square Foot: $379
- Traditional Rental Income: $2,767
- Traditional Cash on Cash Return: 0.3%
As you can see from Mashvisor’s real estate data, condos seem to perform the best on average in the Seattle housing market. They are also the most affordable real estate in the market.
On the other hand, multi family homes for sale (2-4 units) do not bring a very high return on investment for Seattle real estate investors.
Does this mean you should only look for condos and completely avoid multi family homes for sale or the other types? Not necessarily. For one, your choice will depend on your budget for investing in Seattle real estate. Besides that, if you don’t have a preferred type of investment property and are open to owning any kind as long as it performs well, you may find a great multi family deal. That is, if you follow the next steps of how to find investment property in the Seattle real estate market.
Where to Invest in Seattle for a Good Return on Investment
The next step of your investment property search is to figure out where to start looking for properties. Mashvisor’s neighborhood data can help you easily decide, whether you know which type of Seattle investment property you want to go after or not. Here are the best Seattle neighborhoods by property type:
The Best Neighborhoods in Seattle for All Investment Property Types
South Park
- Median Property Price: $374,983
- Price per Square Foot: $306
- Price to Rent Ratio: 13
- Traditional Rental Income: $2,350
- Traditional Cash on Cash Return: 3.2%
Maple Leaf
- Median Property Price: $429,500
- Price per Square Foot: $417
- Price to Rent Ratio: 16
- Traditional Rental Income: $2,290
- Traditional Cash on Cash Return: 2.8%
Wedgwood
- Median Property Price: $652,500
- Price per Square Foot: $351
- Price to Rent Ratio: 15
- Traditional Rental Income: $3,595
- Traditional Cash on Cash Return: 2.6%
East Queen Anne
- Median Property Price: $622,667
- Price per Square Foot: $646
- Price to Rent Ratio: 17
- Traditional Rental Income: $3,020
- Traditional Cash on Cash Return: 2.5%
Rainier View
- Median Property Price: $603,732
- Price per Square Foot: $350
- Price to Rent Ratio: 19
- Traditional Rental Income: $2,619
- Traditional Cash on Cash Return: 2.2%
Start your search for investment properties for sale in Seattle.
The Best Neighborhoods in Seattle for Single Family Homes for Sale
High Point
- Median Property Price: $479,500
- Price per Square Foot: $400
- Price to Rent Ratio: 15
- Traditional Rental Income: $2,630
- Traditional Cash on Cash Return: 2.6%
South Park
- Median Property Price: $424,975
- Price per Square Foot: $345
- Price to Rent Ratio: 15
- Traditional Rental Income: $2,300
- Traditional Cash on Cash Return: 2.4%
Rainier View
- Median Property Price: $603,732
- Price per Square Foot: $350
- Price to Rent Ratio: 19
- Traditional Rental Income: $2,619
- Traditional Cash on Cash Return: 2.2%
East Queen Anne
- Median Property Price: $621,500
- Price per Square Foot: $887
- Price to Rent Ratio: 20
- Traditional Rental Income: $2,530
- Traditional Cash on Cash Return: 2.0%
Fremont
- Median Property Price: $722,933
- Price per Square Foot: $496
- Price to Rent Ratio: 20
- Traditional Rental Income: $3,037
- Traditional Cash on Cash Return: 1.9%
Start your search for single family homes for sale in Seattle.
The Best Neighborhoods in Seattle for Townhouses for Sale
Greenwood
- Median Property Price: $625,000
- Price per Square Foot: $470
- Price to Rent Ratio: 15
- Traditional Rental Income: $3,380
- Traditional Cash on Cash Return: 2.7%
Whittier Heights
- Median Property Price: $650,000
- Price per Square Foot: $570
- Price to Rent Ratio: 17
- Traditional Rental Income: $3,140
- Traditional Cash on Cash Return: 2.2%
Wedgwood
- Median Property Price: $680,000
- Price to Rent Ratio: 17
- Traditional Rental Income: $3,300
- Traditional Cash on Cash Return: 1.9%
High Point
- Median Property Price: $599,950
- Price per Square Foot: $384
- Price to Rent Ratio: 19
- Traditional Rental Income: $2,630
- Traditional Cash on Cash Return: 1.9%
East Ballard
- Median Property Price: $750,000
- Price per Square Foot: $551
- Price to Rent Ratio: 19
- Traditional Rental Income: $3,210
- Traditional Cash on Cash Return: 1.6%
Start your search for townhouses for sale in Seattle.
The Best Neighborhoods in Seattle for Condos for Sale
South Park
- Median Property Price: $275,000
- Price per Square Foot: $227
- Price to Rent Ratio: 9
- Traditional Rental Income: $2,450
- Traditional Cash on Cash Return: 4.8%
East Queen Anne
- Median Property Price: $625,000
- Price per Square Foot: $405
- Price to Rent Ratio: 13
- Traditional Rental Income: $4,000
- Traditional Cash on Cash Return: 3.4%
Maple Leaf
- Median Property Price: $429,500
- Price per Square Foot: $417
- Price to Rent Ratio: 16
- Traditional Rental Income: $2,290
- Traditional Cash on Cash Return: 2.8%
Highland Park
- Median Property Price: $257,500
- Price per Square Foot: $304
- Price to Rent Ratio: 13
- Traditional Rental Income: $1,620
- Traditional Cash on Cash Return: 2.6%
South Beacon Hill
- Median Property Price: $278,000
- Price per Square Foot: $275
- Price to Rent Ratio: 14
- Traditional Rental Income: $1,710
- Traditional Cash on Cash Return: 2.5%
Start your search for condos for sale in Seattle.
If you’re interested in conducting your own neighborhood analysis of the Seattle real estate market, you can use Mashvisor’s real estate investment software.
Say you’re looking for more affordable neighborhoods in Seattle. Or perhaps you want to find the best places to invest in Airbnb Seattle rentals. To get these answers, you can use our Real Estate Heatmap. Visit Mashvisor and type Seattle, WA into the search engine. You’ll see a map of Seattle neighborhoods:
Click on the “Explore Data” button pictured above to access the different filters which include:
- Listing Price
- Airbnb Cash on Cash Return
- Traditional Cash on Cash Return
- Airbnb Rental Income
- Airbnb Cash on Cash Return
- Airbnb Occupancy Rate
If you wish to find a Seattle neighborhood with a high Airbnb occupancy rate, for instance, select that filter. All of the neighborhoods highlighted in green will have a high Airbnb occupancy rate:
Try out the other filters and perform your own neighborhood analysis by signing up for Mashvisor now.
Related: Airbnb Rentals: Finding Income Properties Using a Heatmap
How to Find Investment Properties in the Seattle Real Estate Market
Once you select a neighborhood to invest in, it’s time to start your search for top-performing Seattle income properties. There are a few different approaches that have proven to be successful for Seattle real estate investors:
- Find a Seattle real estate agent with experience in real estate investments.
- Search for Seattle homes for sale online.
- Use Mashvisor’s Rental Property Finder.
The first two routes are self-explanatory. So we’ll stick to talking about how to use Mashvisor’s tool to find high return properties for sale in the Seattle real estate market.
There are a few different ways you can find investment properties for sale on Mashvisor. If you want to learn how to find investment properties in a specific Seattle neighborhood, read this article where we demonstrate how to do that using the Austin real estate market as an example. But the quickest way is through the Rental Property Finder. Just follow these steps:
Step #1: Set “Seattle, Washington” as the Location
Sign up for Mashvisor and make your way to the Rental Property Finder. Type “Seattle, WA” into the Location filter and select the city from the dropdown menu. There are a few more things you can with this tool with regards to the location:
Conducting Your Property Search Across Multiple Cities
If you haven’t 100% settled on Seattle real estate investing, you can use this tool to compare rental property performance across a few different cities. For example, maybe you’ve heard that rental properties in the Vancouver real estate market make for good property investments as well. You can search for properties in the two cities simultaneously. Here’s what those results would look like today:
Because the Rental Property Finder lists the investment properties with the highest cash on cash return first, you can see that right now, there is a more profitable traditional rental property available in the Seattle real estate market vs the Vancouver real estate market.
Want to conduct this kind of search in an unlimited number of cities at once? Sign up for an Expert Plan with Mashvisor.
Defining the Range of the Search
The Rental Property Finder also lets you define the range of the search. Set the Miles filter to specify how far from the city you wish to look for properties. Note that this filter can only be used when searching in one city.
Step #2: Select the Filters
Besides the filters related to the location, you can set a few more:
- Budget (from $50k to $5m)
- Rental Strategy (traditional or Airbnb rental strategy)
- Type of Property (single family residential, multi family, condo/coop, other)
- Number of Bedrooms and Bathrooms
Sticking with the Seattle real estate market trends, you’ll be able to set the filter for condo investments and find a high return condo for sale in seconds. Just like that, you’ll find a good investment property in the Seattle real estate market. But there’s one more important step to take.
Step #3: Analyze the Investment Property
When buying property in Seattle, your focus shouldn’t just be the search itself. Once you find an investment property, you have to analyze it. Rather than setting up spreadsheets, you can use Mashvisor’s investment property calculator. Simply click on any of the listings on the platform and you’ll get a full analysis of metrics like the rental income, expenses, cash flow, cash on cash return (which takes into account your mortgage info), cap rate, and occupancy rate. And you’ll get to see how a specific Seattle investment property performs as a traditional and Airbnb investment:
So you can easily find a great real estate investment in the Seattle housing market based on your budget, financing, and rental strategy of choice.
Related: How to Do Rental Property Analysis in 2020
What About Off Market Properties in Seattle?
If you’d rather invest in off market properties in Seattle, here are a few ways to find them:
- Driving for Dollars
- Hire a Real Estate Agent
- Direct Mail
- The Mashvisor Property Marketplace
In the Mashvisor Property Marketplace, specifically, you can find short sales, bank owned homes, auctioned properties, and foreclosed homes in Seattle. You’ll also be able to use the investment property calculator to analyze off market properties. To learn more about this part of our platform, read: The Best Tool to Find Off Market Properties.
Start Your Search for Investment Property in the Seattle Real Estate Market
Ready to start your search? Sign up for a 7-day free trial with Mashvisor now to quickly find a high return property in the Seattle housing market.