Buying a Portland Investment Property
Everyone wants to live in Portland. We’re seeing an extended period of low inventory of homes for sale right now, and the city also has one of the tightest rental markets in the country, with a 3.4% vacancy rate. This is a metro wide vacancy rate, but many suspect in the hottest neighborhoods in close-in Portland, vacancy rates can drop to below 1%. To compare, New York City’s vacancy rate hovers around 2-3%. Of course, investment properties are much cheaper to buy in Portland, Oregon. Is this a killer investment opportunity? Signs point to yes.
According to a study by the National Association of Realtors, Portland metro area rents increased by 20% between 2009 and 2014 (and the average mortgage payment only increased 10%). Find the right property, and you will be able to make a regular monthly income off your Portland investment!
Ready to invest? Your Portland real estate agent will help you find a house that works for you. Here are some things you might look for:
- Low property taxes and HOA fees. Great neighborhoods often come with high property taxes and occasionally HOA fees, which you will have to factor into your budget. Sometimes this will result in a investment cost that’s too high, even by Portland standards!
- Parking. If you’re renting out a home that has multiple bedrooms, you may be dealing with three or even more parties sharing the space. That means extra vehicles, so be sure bigger homes have plenty of parking to go with them.
- Close to where you live (if you’re managing the rental yourself). There’s nothing worse than driving across Portland every time a lightbulb at your investment property needs changing. Then again, Portland has many property management agencies, and you might consider hiring one to manage your investment. In that case, it doesn’t matter where you live!
I hope these tips have helped you start your investment property search. They really can be a great source of income and you’ll learn a lot about real estate in the process! Please contact me if you have any questions or want to begin your search today.
