Investing in Ellensburg area, pros and cons? (Seattle, Spokane: ski resorts, fit in)

[Wheatridger]

Suddenly I find myself poring over real estate in this out-of-the way place. My wife has been offered a good IT job at Central Washington University. She'd work remotely, since we live in CO. She plans to spend about one week there a month. I really tried, but I don't see us moving there full time. We've always lived in cities and got used to certain things, like world-class medical facilities and specialists nearby. It's still two hours from Kent, where our only child lives. And the climate isn't that much of a change from Denver's high-and-dry aridity. Within a few years at retirement, we'd want to settle on the west side, closer to my daughter.

If not a place to retire to, could Ellensburg become something else for us? A vacation getaway? A short-term rental? A low-cost investment in a fast-growing area? I value all your opinions on this. I'm seeing a number of small, remodeled SF homes at $250,000-300,000 there that look like some of the short term rentals I've stayed in. I'd love to spend a few weeks there a year, exploring WA state sights like the Gorge and the Palouse. That alone wouldn't justify the investment, but could STR profits and lodging costs avoided for her work travel add up to a break-even investment? Is there some commonly used formula for evaluating this?

[Diana Holbrook]

My experience is old enough that it's impolite to ask but when I was going to school there, there was TREMENDOUS demand for rental properties. To the point where one fall we waited at the newspaper for the new edition to come out (I told you it was impolite to ask how old!) each afternoon so we could try to get there before any new listings were rented.

There are a lot of old houses there, converted to apartments for students. I rented several of them. Quirky, fun little places. They were so hard to get, we rented through the summer even if we were going home, because you couldn't find another one if you let it go.

My experience is old, as I said, but I might check in to the student housing market if you'd want to manage that... (or pay to have it managed) May not be the kind of short term rentals you're after, where she could also hope to stay there there too, but it is probably a good place for an income property.

[pnwguy2]

Ellensburg is fine, but still in the eastern Cascade cold range. Temps there are cold well into May and come around in early October. If you like a colder climate then go for it.

[Wheatridger]

Originally Posted by pnwguy2

Ellensburg is fine, but still in the eastern Cascade cold range. Temps there are cold well into May and come around in early October. If you like a colder climate then go for it.

I live in Denver. Tomorrow's high will be 16degrees. Last year it snowed into May. I'm ok with cold, but I really want to live over on the west side.

[MtnSurfer]

Originally Posted by Wheatridger

I live in Denver. Tomorrow's high will be 16degrees. Last year it snowed into May. I'm ok with cold, but I really want to live over on the west side.

We lived in CO and still have family in Denver. If you're looking for a change in climate with less year round snow, the west side is the way to go. Everyone has their preferences and I'm sure some love that colder climate. But you're correct in your assessment that things won't be that different climate wise. Then, you're in a small town removed from many of things you currently enjoy. So, cold with fewer amenities and more remote. Think of smaller towns in CO a couple hours from civilization and that's about what you'll have there. Places like Buena Vista come to mind. It's not for everyone, that's for sure. And you'll have to cross over the Cascades via Snoqualmie Pass to get to decent airports and other big city type amenities. That's not always fun when there's snow, ice and/or storms like driving through the Rockies. IMO, it would be a downgrade from a QOL perspective. But you're closer to your daughter which is the biggest plus, I see.

That said, you're near some beautiful mountains with the Cascade range which you have now with the Rockies. So again, not too different from your current surroundings.

Is it worth picking up an investment property? Perhaps it could be? Is it worth the time, energy, dealing with tenants, property management companies, etc..? That's really more up to you and you're situation, I guess. Personally, I don't see that area growing in terms of values like western WA. It's almost like another state over there being more removed from things. There is simply less demand, fewer people and more open land from an investment perspective. Its mainly a smallish college town where most kids leave after graduation for opportunities elsewhere. I don't see it as a place with enough critical mass for growth in terms of drawing people in unlike communities outside Denver such as Longmont, Castle Rock or even Fort Collins.

For one week a month, you would need to do a VRBO type rental since you plan to actually use the place. So, you're not looking to rent to college kids if you'll be there too. hm...

It might be less hassle to simply find a hotel she likes ~ 9 weeks out of the year. I would start with that *after* visiting a number of times first before dropping that kind of cash from afar. Things are always different living somewhere than visiting or researching a place online. They all have their unique pros/cons and quirky aspects that take some adjusting to.

Derek

[Wheatridger]

Sounds like good advice. It's my nature to look before I leap.

[Diana Holbrook]

She may be able to find temporary housing in some of the student apartments and dormitories. They may be nicer than you imagine and handy. One dorm right across from the main drag was always used just for guests.

Central is a liberal arts college with a lot of teachers who need to go back for continuing education and they often would stay in the vacant dormitories while they were there. Again at the time I was going there was no supply of even short term rentals other than the college.

[Wheatridger]

Yes, she's learned that, so one reason to buy may no longer apply. I'm still curious about the potential for short and semester-term rentals, though.

Elllensburg beckons and repels me in equal measures. It's also a puzzle that doesn't fit into my context, which is mostly Colorado. Our mountain towns are so much more prosperous, and almost all are booming. Why is the first city east of the pass on I-90 still so seemingly small and sleepy? Is that about to change? My wife says they're building houses "everywhere in sight." Yesterday's NYT reports that Spokane values are up 60% in a couple of years, and it's gone from being the next big thing to the last.

[Diana Holbrook]

Ellensburg is the first bigger city -East- of the pass, not west. Big difference.

The Washington ski resorts are not really the same kind of draw as Colorado? Our ski resorts don't revolve around ski lodging, skiing is a day trip, up and back again. They're local attractions, not travel destinations. Most people booking to TRAVEL for skiing, don't book trips to Washington ski resorts, they go to Colorado.

Ellensburg is too far from the pass to be a good lodging choice for skiers. You don't feel like you're in the mountains there, it's more like high desert plateau. From Eastern WA - Most ski traffic would go to Mission Ridge outside of Wenatchee. It has better, drier east-slope snow, lighter and fluffier than the thick peanut butter slush of the West side and Snoqualmie Pass ski areas.

Ellensburg is a college town. A bit of an ag town also... a college and cow town.

[Wheatridger]

Corrected, thanks.

Overall, the rural/urban divide seems more stark in Washington. In CO, tourism brings urbanites and urban money to all corners of the state. Our Gold Rush towns have more glamour, and ski areas have diversified into year-round attractions. In comparison, WA is so unspoiled- but seems to have far fewer tourist infrastructure. As if most of the weekend warriors escaping Seattle for the weekend really do stay in backpacking tents.