Welcome Back,

Hello everyone,

I hope you are doing great. Today we will be diving into another real estate market. The market we will diving into is Yakima, Washington. Enjoy!

Daily News Updates:

In a significant development, the Bureau of Meteorology (BoM) has issued warnings of life-threatening flash floods in Queensland and severe storms in north-east Victoria.

North Queensland is bracing for another wave of monsoonal rains, exacerbating the already flood-affected region. Additionally, there's a possibility of a tropical cyclone developing in the Coral Sea, which may lead to more severe flooding.

On the political front, Prime Minister Anthony Albanese announced a six-year $843 million agreement aimed at delivering essential services in remote Indigenous communities in the Northern Territory.

This funding will support services like policing, women's safety, education, and health programs.

In the sports arena, the Washington Commanders' quarterback Jayden Daniels led the team to a 12-5 record and their first NFC Championship appearance since 1991.

His performance included a 69% completion rate, 3,568 passing yards, and 31 total touchdowns. Daniels was awarded the 2024 Offensive Rookie of the Year and NFL Moment of the Year for a Hail Mary touchdown against the Chicago Bears.

Fashion enthusiasts are abuzz as New York Fashion Week kicked off on February 6 and will continue until February 11. The event is drawing numerous stars to its prominent runway shows, presentations, and afterparties.

Celebrities including Katie Holmes and Laverne Cox are among the noted figures attending, showcasing their style both on the catwalk and around the city.

For those with a sweet tooth, 7-Eleven, Speedway, and Stripes stores are offering free small Slurpees every Friday in February (Feb. 7, Feb. 14, Feb. 21, and Feb. 28).

This promotion aims to lift spirits during the winter months with classic Slurpee flavors like cherry, Coca-Cola, blue raspberry, and piña colada, as well as limited-edition options like zero sugar Coca-Cola Oreo.

Market Snapshot:

Yakima, Washington

The Yakima real estate market has experienced modest growth, with the average home value reaching $342,165, reflecting a 2.6% increase over the past year. Homes typically go pending in approximately 27 days, indicating a reasonably active market.

• Median Home Price: $342,165

• Year-over-Year Price Growth: 2.6%

• Average Days on Market: 27 days

Deal Of The Day:

Duplex in Yakima, WA

• Price: $450,000

• Units: 2 (Each 3-Bed, 2-Bath)

• Monthly Rental Income: $3,200

• Cap Rate: 7.5%

This duplex offers a solid investment opportunity with a 7.5% cap rate. Each unit rents for $1,600 per month, totaling $3,200 in monthly income. Located near local amenities and schools, it appeals to families seeking quality rentals. The property's proximity to downtown Yakima enhances its attractiveness to potential tenants.

Investment Strategy:

Seller Financing

In a seller financing arrangement, the seller acts as the lender, allowing the buyer to make payments over time instead of securing a traditional mortgage. This can be beneficial in competitive markets or when buyers face challenges obtaining conventional financing. For example, purchasing a property for $300,000 with a 10% down payment and the remaining $270,000 financed by the seller at a 5% interest rate can create favorable terms for both parties.

Current Interest Rates:

Yakima, Washington

• 30-Year Fixed Residential: 6.3%

• 15-Year Fixed Residential: 5.9%

• Commercial Rates: Starting at 6.5%

Mortgage rates in Yakima are currently around 6.3% for a 30-year fixed loan. These rates influence purchasing power and can affect overall investment returns. Staying updated on rate fluctuations is crucial for strategic planning.

Real Estate Tip:

Navigating Property Management in Smaller Markets

Investing in smaller markets like Yakima offers unique opportunities and challenges. While property prices may be more accessible, finding reliable property management can be a hurdle. Building relationships with local professionals is essential. Attending community events, joining local business networks, and engaging with regional real estate associations can help identify trustworthy property managers. For instance, partnering with a local firm that manages multiple properties can provide economies of scale and ensure your investment is well-maintained.

Economic Conditions

Yakima's economy is deeply rooted in agriculture, being a leading producer of apples, cherries, and hops. The city's unemployment rate stands at 6.1%, slightly above the national average. However, future job growth over the next decade is projected at 40.1%, surpassing the U.S. average of 33.5%. This anticipated growth could bolster housing demand and present favorable conditions for real estate investors.

Key Takeaways:

• Yakima Market Update: Average home value is $342,165, with a 2.6% annual increase.

• Deal of the Day: A duplex priced at $450,000 yielding a 7.5% cap rate.

• Tip: Familiarize yourself with local zoning laws to avoid potential legal issues.

• Investment Strategy: Consider seller financing to create flexible purchasing terms.

• Interest Rates: 30-year fixed residential mortgages are currently at 6.3% in Yakima.

• Economic Insight: Projected job growth of 40.1% over the next decade may enhance housing demand.

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That’s All For Today

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