Rental Investment Options for San Juan Island

Merri Ann Simonson shares these real estate tips with you…

Merri Ann Simonson – Contributed photo

If you are contemplating buying a rental investment on island, one of the Roche Harbor Resort homes or parcels should be on the list for consideration. In 2005 I purchased a two bedroom rental house in the resort and have been very pleased with my investment.

I believe that the properties in the resort and nearby fared better through the recession. On San Juan Island our prices peaked in 2007 and reached the floor in 2013. During that period our median home price decreased 30%. We have recovered since then and in some pricing categories of our market, we may soon be able to measure appreciation. As a realtor, I have noted that homes and parcels in and near the resort sell at a higher percentage over their tax assessment than other homes on the island.

As an example, I paid $534,000 for the two bedroom rental home in 2005. If I add two additional years of average appreciation of 6% for 2006 and 2007, then calculate the 30% discount to market value due to the recession years, my house should be worth around $425,000 today, which is not the case.  I recently had my home appraised and the value issued was $675,000. I can personally say that Roche Harbor properties hold their value in tough years.

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