- 15
- Units
- Yakima, WA
- Location
- 2015
- Acquired
- 6 years
- Hold Period
- 84%
- Average Annual Return
We were able to 1031 exchange into this 15-unit apartment in Yakima, Washington. No one expects Yakima to become a hot market, and it certainly hasn’t, but slow and steady growth, plus a neighborhood next to the community college, combine to produce healthy yields. Demand has always been strong, service contractors are abundant, and the property had recently undergone minor renovations following a fire.
We liked this market in particular because it wasn’t going to take a big hit in a major downturn. Its agricultural products, including fruits and wine, are in worldwide demand and make Washington the country’s number-one apple exporter. Add the manufacturing, aerospace, and healthcare companies that call Yakima home, and it remains a rock-solid community. Compared with some of our earlier properties, cash flow was surprisingly strong.
What we learned
- Property managers make or break your investment. Work with them closely, but don’t hesitate to replace them if their goals aren’t aligned with yours.
- Review all tenant leases closely before you close. Get the issues fixed before closing.
- Inspect units regularly. Make sure the manager knows the tenants and responds to trash, pet, car, smoking, and disturbance issues.
- Market to nearby employers. The community college next door was constantly looking for housing — we didn’t know until we reached out.