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Top 5 Best Real Estate Investment Markets in Washington

Whether you’re looking to scale your portfolio or just hoping to expand your income, investing in Washington State realty can help. From beautiful, rural areas to bustling cities, there’s a lot of variety to choose from. Here’s what you need to know about investing in Washington real estate.
Whether you’re looking to scale your portfolio or just hoping to expand your income, investing in Washington State realty can help. From beautiful, rural areas to bustling cities, there’s a lot of variety to choose from. Here’s what you need to know about investing in Washington real estate.

Washington was recently named one of the hottest states in the United States housing market by multiple sources. It's not surprising since those who are familiar with the investment market in Washington will know that this Evergreen corner of the Pacific Northwest is an incredible place to invest and to live.

The market in Washington continues to be popular thanks to its strong economy, increasing home values, and a rental market that makes it attractive for investors. However, Washington is a sizeable state, and it can be difficult to know where to begin your search for an investment property.

Here are five of the best real estate investment markets in Washington State.

Market Trends in Washington State

Where other states are experiencing a rise in home prices, Washington prices are projected to stay stable only rising slightly if they increase at all. This might seem like bad news for investors, but appreciation in Washington is going to lead the nation. This is where investors can capitalize.

Of the top 10 markets projected to experience appreciation nationwide through December of 2019, three are in Washington State.

There is also a strong demand for rental properties in Washington. Since prices have risen, most would-be home buyers are seeking rentals until the market is more affordable. This demand is present for every sector of the real estate market.

While this might be disappointing news for those looking to buy a home, it's great news for investors. If you’re looking to purchase properties to rent out, there hasn’t been a better time to do so in Washington in a long time. It’s a great opportunity for those who want to increase their residual income stream and further develop their portfolios.

Also, there's a low but steady inventory in Washington State and a high demand as well. This added to supply and demand laws means that there are even better opportunities for investors. There are excellent returns and positive cash flow expected in the Washington real estate market, so now is a great time to jump on board.

Top 5 Best Markets for Real Estate Investment in Washington

There are many places to choose from when it comes to a market for real estate investment in Washington. Of the beautiful locations, vibrant communities, and promising markets, where should you begin your search?

Here are five Washington markets that are promising for real estate investors.

Marblemount

Located in beautiful Skagit County Washington, this gorgeous and rural area is often sought out as an escape from the busy city life. The 2010 census recorded its population size at just 203 people. However, it's a great opportunity for investors.

This is particularly true for investors who are looking to set up cabin rentals and other getaway locations.

The median price in Marblemount is $99,950 with a price per square foot of $223. The traditional rental income here is around $1,370, with a price-to-rent ratio of 6. The cash-on-cash return in this market is 8%.

Baring, WA

Another great opportunity for investors looking to set up cabin rentals and similar businesses, Baring, Washington is another beautiful and rural area to invest with a promising real estate market.

Whether you’re hiking on Heybrook Ridge, visiting Forks of the Sky State Park, or just enjoying the great outdoors, Baring has it all for nature lovers who want an escape. But never fear, just 33 miles away is the bustling city of East Seattle, so you’re never too far from the comfort and convenience of city life.

Baring also enjoys a lower unemployment rate than most of the state.

The median property price here is $200,000 with a price per square foot of $154. The traditional rental income sits at around $2,230 with a price-to-rent ratio of 7 and a cash-on-cash return of 7%.

Rosalia, WA

The beautiful seaside town of Rosalia, Washington is another attractive place for real estate investors in Washington State. It's a very popular location for rentals. If you picture “quaint small town”, the image that comes to your mind is likely what you’ll find in Rosalia.

While it’s a very small town with a population of just 550 at the last census, it’s only 30 miles away from Spokane, a larger city of 50,000 people. It’s the perfect combination of small-town living and city access.

The median property price here is $95,000. The price per square foot in this location stays that around $33, and the traditional rental income is $1,270. The cash-on-cash return is around 7%, with a price-to-rent ratio of 6.

St. John, WA

St John is a promising location for real estate investors in Washington, particularly for those who want to set up rentals that offer a natural escape for vacationers. It’s also a great location for those who are seeking a second home or a place to own where family members can get away during the holidays.

The median property price here is $132,450 with a price per square foot of around $65. The traditional rental income is $1,300 with a price-to-rent ratio of 8 and a cash-on-cash return of 7%.

Covington, WA

Finally, Covington Washington is a wonderful place for real estate investors to set up shop. There's been an increase in the median home price of sales of 5% in the last year, up $17,050 from the previous year.

The median property price here is $612,937 with a price per square foot of $243. The traditional rental income here is $3,321 with a price-to-rent ratio of 15. The cash-on-cash return is 5%.

Investing in Washington State properties now can be a wise choice. However, even if you're experienced in real estate investment, it's important to partner with an experienced, local real estate agent for guidance throughout the process.

Partnering with a real estate agent who has expertise in the market of your choice can help you break into the market, scale your portfolio, and get the best deals. It's important to have a guide as you navigate the real estate investment process so that you can avoid common and pitfalls, benefit from their expertise, and earn the most from your investment property.

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Ben Mizes

Ben Mizes is the co-founder and CEO of Clever Real Estate, the free online service that connects you with top agents to save thousands on commission. He's an active real estate investor with 22 units in St. Louis and a licensed agent in Missouri. Ben enjoys writing about real estate, investing, personal finance, and financial freedom. He's a serial entrepreneur, having run several successful startups before Clever Real Estate. Ben's writing has been featured in Yahoo Finance, Realtor News, CNBC, and BiggerPockets.

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