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Homes and Land in Sunny Sequim, Washington

Homes and Land in Sunny Sequim, Washington

Sequim's No.1 Buyer's Agent Where Knowledge & Experience Count.

(360) 775-5424
Email: ChuckMarunde@gmail.com

iRealty Virtual Brokers, aka Sequim & Port Angeles Real Estate
125 Olympic Ranch Ln, Sequim, WA 98382

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Is It a Good Idea to Invest in Rental Properties?

by Chuck Marunde / Tuesday, 15 September 2015 / Published in Investing

Is investing in rental properties a good idea in the Sequim or Port Angeles area? A gentleman was wisely planning for his retirement years, and he knew that rental properties could be a good source of income. My advice to him might surprise you.

Rental Properties

Rental Properties – A Good or Bad Idea?

He asked about older rental properties. Why would someone who is trying to secure a retirement income look at old homes, like early 1900s or pre-1950? Because those are the homes you can get for under $175,000. Since rental properties must pencil out, with low rental rates in the Sequim and Port Angeles area, it is practically impossible to make an investment above $150,000 to $175,000 that will give you a decent rate of return. A nice modern home with 3 bedrooms and 2 baths is likely to be $250,000 to $300,000, and with rents ranging from $600 to a maximum of $1,400 for a very nice home, rental properties are hard to justify on paper.

Rental Properties and Potential Nightmares

Buying a 1930s home that was remodeled with the idea of renting it out to a good tenant with few problems and a sweet positive cash flow is probably a pipe dream in this area. There are only a hundred potential hidden defects in an old home that could cost you $5,000 to $30,000 to repair. Some of these old homes have foundations that could need to be completely replaced. Imagine how much that could cost? Then there’s old wiring. What if the county building department red flagged the house and told you it had to be completely rewired up to the current code? Try replacing an entire heating system in an old home. What if the tenant decides to sue you for mold you didn’t know about? You might as well just quit claim the house to the tenant at that point. There are far too many problems with old homes to seriously consider them as a safe and secure retirement income. Safe and secure they are not.

Good rental properties would be fairly modern, post 1980s, and be the kind of homes that “good tenants” would actually want to live in for a while. While it may not guarantee a good ROI (return on investment), if you can pay in cash, in the long run the small rate of return and the appreciation can and will provide a very solid retirement income in the next 10 to 20 years. If you’re planning to get a big mortgage, it just won’t work. That’s my opinion on rental properties in the Sequim area.

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Tagged under: Investing, rental properties

About Chuck Marunde

After practicing real estate law for 20 years in Washington, Chuck opened iRealty Virtual Brokers covering the Sequim and the beautiful Olympic Peninsula. Chuck is the author of numerous magazine and Internet articles with a primary focus on real estate. He is also the author of over a dozen books, mostly about Sequim real estate. Chuck is a photographer, videographer, and Registered FAA Drone Pilot. Chuck has combined his love for real estate and technology to create a growing Internet presence in his market, and enjoys building his websites and blogs, including SequimBlog.com and Sequim4Sale.com and LuxuryWaterViewHomes.com. Chuck has degrees in Economics, Law, and Education.

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Chuck E. Marunde, J.D.

Sequim Buyer's Agent
(Atty Ret.)
Founder and Broker of
Sequim & Port Angeles Real Estate dba iRealty Virtual Brokers
125 Olympic Ranch Ln,
Sequim, WA 98382
(360) 775-5424
ChuckMarunde@gmail.com

Blog Articles by Date

From Los Angeles

It's rare, but once in awhile life provides the perfect collaborator for an important endeavor such as buying your new home. For me that person was Chuck Marunde. His two decade background as a Real Estate Attorney, his prolific career as an author of articles and books on Real Estate and his forthright and moral character made choosing Chuck a no-brainer. Chuck is dedicated, thorough, incredible at the negotiating table, knowledgeable about all local laws & regs but, most importantly, Chuck loves what he does. And what he does is find his client the perfect property. Chuck isn't about making the sale, he's about making the sale that is OPTIMUM for his CLIENT and this makes Chuck a rare bird indeed. I love my new home in Sequim and I am indebted to Chuck for making it happen. Kevin E.

From Seattle

I’ve had the pleasure of working with Chuck over the past three years in selling my parent's estate. It was a tough time to sell during the housing recession, but Chuck always kept things on the positive side. With his real estate law background, he offers sound, practical advice. He helps you along with the process using discussions and reason, rather than opinions and speculations. If Chuck doesn’t know the answers, he will get them for you. In several instances, Chuck took the initiative to meet with county officials to get up-to-date facts about zoning and regulations. I was always impressed with his company’s tech savvy communi-cations and internet presence: weekly email updates, blogs, videos, links, Linked-in networking, etc. He is truly pioneering the future of buying & selling real estate. Brian M.

From California

"Andy Romano is a successful motion picture character actor with over 40 years in 'the Biz.' Mr. Romano has a home in beautiful Santa Barbara, California, but he chooses to live most of the time in Sequim, Washington on the Olympic Peninsula in the great Pacific Northwest. Why? In his own words, 'Because it's even more beautiful and surrounded by more beauty in this incredibly peaceful and quiet place. With respect to real estate agents or brokers, well my friend Chuck Marunde, owner of Sequim and Port Angeles Real Estate, is hands down the best there" Andy R.

Intro by Chuck Marunde

From Florida

We do our homework for the task at hand and we look for and expect to enlist partners that do the same. It was our good fortune to select Chuck Marunde of Sequim and Port Angeles Real Estate to represent us as a buyer's broker in our search for a home in the Sequim/Port Angeles area. Chuck's site is all encompassing and super fast compared to many others, he knows the market at every conceivable level and his guidance through the process of selecting and purchasing a home is priceless - above and beyond that of anyone with whom we have ever worked. Add to all this his 20 year background in real estate law and you have discovered a superb asset in the adventure of purchasing a home. Greg and Marilyn

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