A $500,000 house renting for around $3,000 a month does not meet the old 1 percent rule. Anne Curry is finding another way to make the numbers work.
Anne is a longtime buy and hold investor in Tacoma, Washington. She explains how she is looking for properties with something extra: enough backyard space for DADUs and, when possible, an unfinished basement with a separate entrance.
Anne walks through the numbers she is seeing in Tacoma. She says a 1,000 square foot, three bedroom, two bath DADU can cost around $300,000 to build and rent for roughly $3,000 to $3,200 per month. She also explains why the original house can sometimes be sold while the new backyard rentals are kept.
Her newest approach adds another piece. Anne is buying homes where the basement can become another unit. That can help the main property work as a rental today while she holds the backyard for possible development later.
Key topics and takeaways:
Why Anne still prefers buy and hold investing
Why the old 1 percent rule is harder to reach in Tacoma
Using DADUs to create rental income from backyard space
Anne's example of a $300,000 DADU renting for $3,000 to $3,200
Why unfinished basements with separate entrances are getting Anne's attention
Land banking backyard space for future DADUs
Why Anne starts with an investor's goal before choosing a strategy
Guest information:
Anne Curry is based in Tacoma, Washington. She works with real estate investors and also offers mentorship using an hourly model.
Website: anncurryhomes.com
Anne also mentioned free events in Tacoma, with information available through her website.
Call to action:
To learn more about Anne, her mentorship, and her Tacoma events, visit anncurryhomes.com.