Last updated on June 21st, 2023
airbnb property investment Seattle
Did somebody say coffee? Seattle is filled with interesting coffee culture, but there’s so much more to discover! This city’s various amazing tech industries certainly attract young professionals to do their business, but it’s also a haven for property investors who want to engage in tourist market. While many travelers consider this city on their travel bucket list, it’s most certainly a thrill for property investors too.
To begin with, the major costs and potential revenue should be considered before deciding to purchase a property. Another excellent option is to do rental arbitrage in Seattle since it’s fairly popular and does not require you to purchase a property as a start.
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“Seattle real estate investment generates excellent ROI in the long term. Seattle’s housing market has been one of the hottest in the country for years.
In the past ten years, the annual real estate appreciation rate has amounted to nearly 9.26%. This puts Seattle in the top 10% nationally for real estate appreciation.”– Norada Real Estate Investments of Seattle Properties
Airbnb occupancy rates by city state that an average host in Seattle can earn up to $37,356 during the peak seasons from July – August. With over 4,050 Airbnb listings in Seattle, it’s certainly a catch for property investors!
Aside from looking at a property’s fascinating architectural design, proximity to major tourist areas, and accessibility to the best go-to places, the primary step is to determine profitability. In this article, we’ll discuss the metrics in order to gauge the best property investment.
This includes the best website recommendations for property investment in Seattle, property gross rental yield, cash-on-cash return, and annual revenue, along with some of the most ideal and profitable properties according to their location. Stoked to learn more? Continue reading!
Pros of buying an Airbnb Property in Seattle
The Emerald City, Seattle, offers stunning landscapes as the gateway to Alaska! The city is filled with great restaurants, bars and eclectic neighborhoods, so there’s always something new to discover here. However, there’s more to learn as to why we recommend purchasing a property in this city. Here are some of the major reasons why you should consider buying a property for Airbnb in Seattle:
1. Booming economy
Seattle is one of the fastest-growing regional economies in the US, expanding at an annual rate of 4.9%! The job market is booming as professionals can find plenty of opportunities here, especially in the technology field since Seattle is home to major tech industries and is also a hub for start-ups.
2. Bustling tourist destination
Seattle can easily catch people’s attention with its fascinating atmosphere that is surrounded by mountains and lakes! In fact, a great number of travelers arrive in the city each year to enjoy the outdoor and cultural activities in the city. According to Visit Seattle portal, around 21M tourists visited the city before the pandemic and now, Seattle’s tourism industry is trending up again year-over-year.
3. Great location
Let’s be honest, location plays an important role if we are talking about real estate investments. Seattle enjoys a great location in Washington as it’s situated between Lake Washington and Puget Sound of the Pacific Northwest. Here, we can find one of the most important and busiest ports, the Port of Seattle. The main airport is located just 13 miles away from Downtown Seattle. In addition to this, we can’t forget to mention the city’s proximity to major cities like Tacoma & Portland as well as Victoria & Vancouver, Canada.
What to Expect When Purchasing a Property in Seattle?
Now that we know the pros of investing in Boston, let’s take a quick look at some of the cons. It’s always better to look at the two sides of each coin in order to properly set your expectations!
1. High cost of living
While Seattle’s housing market is one of the hottest in the country, it’s also considered one of the most expensive cities. The average housing value here is $831K as confirmed by Zillow Index, which is 80% higher compared to other cities in the state. In addition to this, the overall cost of living is 57% higher than the national average.
2. Terrible traffic!
It’s a given fact that Seattle is a bustling city, so you can already guess that the traffic here can end up being a nightmare. It’s guaranteed that the terrible traffic, especially during rush hours, will be part of your daily life. In fact, drivers lose around 46 hrs in congestion per year.
airbnb property investment Seattle
Is Property Investment Profitable in Seattle, WA?
Using a short-term rental estimator, it was discovered that a 2-bedroom apartment in Seattle can generate an annual revenue of $106,039 with a steady occupancy rate of 71% and a nightly rate of $367.
airbnb property investment Seattle
Modern Homes for Sale in Seattle City Center | Seattle Waterfront Condos for Sale
Finding the best properties that have the potential to produce high yields and capital growth are certainly some of the preferences of major investors. It’s always best to ask for assistance from real estate agents to access exclusive and unique properties during the development stage.
At the same time, it’s even better when a property investor like you conducts research about predicted growths and market forecasts. Check out some of the profitable properties located in Seattle city center and waterfront, along with the calculated gross rental yield, cash-on-cash return, and annual revenue:
14322 Admiralty Way, Lynnwood, WA 98087
1. Studio-type Property for Sale Seattle Waterfront/City Center
- 1.8 miles Picnic Point Elementary School
- Asking Price: $105,000
| GROSS RENTAL YIELD | 27.94% |
| ANNUAL REVENUE | $42,639 |
| CASH ON CASH RETURN | 58.05% |
10303 Crescent Valley Dr NW, Gig Harbor, WA 98332
2. 1 Bedroom-Type Property for Sale Seattle Waterfront/City Centre
- 1.0 miles to Harbor Ridge Middle School
- Asking Price: $175,000
| GROSS RENTAL YIELD | 17.19% |
| ANNUAL REVENUE | $30,081 |
| CASH ON CASH RETURN | 25.80% |
10455 Des Moines Memorial Dr S Apt N303, Seattle, WA 98168
3. 2-Bedroom Type Property for Sale Seattle Waterfront/City Center
- 0.5 miles to Beverly Park Elementary At Glendale
- Asking Price: $199,950
| GROSS RENTAL YIELD | 21.32% |
| ANNUAL REVENUE | $42,639 |
| CASH ON CASH RETURN | 38.21% |
646 N Hawthorne St, Tacoma, WA 98406
4. 3-Bedroom Type Property for Sale Seattle Waterfront/City Center
- 0.4 miles Geiger Montessori School
- Asking Price: $220,000
| GROSS RENTAL YIELD | 26.98% |
| ANNUAL REVENUE | $59,357 |
| CASH ON CASH RETURN | 55.17% |
7701 Hardeson Rd, Everett, WA 98203
5. 4-Bedroom Type Property for Sale Seattle Waterfront/City Center
- 0.5 miles to Horizon Elementary School
- Asking Price: $255,000
| GROSS RENTAL YIELD | 26.82% |
| ANNUAL REVENUE | $68,403 |
| CASH ON CASH RETURN | 54.71% |
Takeaway
Investing in a property is certainly a huge step that one needs to not only think about but also conduct market research for better accuracy. With the economic industries & recreational activities in Seattle, it can generate a nice cash flow for property investors as long as the right neighborhood is targeted!
Thus, if the data presented above has given you ideas to boost your strategic pricing plan for your business, then an Airbnb rental arbitrage estimator is certainly what you need for success in the long run.
