Portland, Oregon Market - Good or Bad?

Question

I live in Portland, OR and am new to Bigger Pockets and real estate investing. Currently paying off debt so I am educating myself as much as possible before I start investing (not analysis paralysis, I swear!). I am slowly realizing that the market here may not be the best for obtaining good cash flowing rental properties. This doesn't stop me by any means, I was just curious if anyone had any success stories on killing it in the Portland Metro area.

Also, I am a little confused on how an investor can buy/manage rental properties that aren't near them or even in a different state. Apologizes if this is a simple questions, I just want to expand my knowledge to equip myself to becoming financially free. :-) Thanks in advance to any help.

Mathew Wray · Answer

@David Mills

I'll echo what Jay and Steve said-check out RareBird and then come up with what works for you...ultimately you're only accountable to yourself so make sure you know what you're buying and then go for it!

As for Portland, like every other market in the country we've got some good things and some bad things, but bad for you might be great for someone else, so it's all a matter of perspective and what you're trying to accomplish. Appreciation has slowed here (latest report for last month puts it 1% over the last year-but that's an average) while inventory isn't increasing (still at 2.3 months which is where it's been hovering for the whole year) either. In the end, we still have a housing shortage which will hold us in good-stead as investors over the long-term.

Congrats on getting your debt paid down...it's a huge step that will help you jump into investing with more confidence and more of a cushion for when things don't go according to plan!

Best of luck,

Mathew

Jay Hinrichs · Answer

I would recommend you go to the Myrarebird meetings once a month.. this is a great group of local investors you will learn a ton there.. for instance this Thursday I am giving a talk on what to look out for when you want to buy out of state with examples etc.. I don't sell out of state properties but I have lent on them for 20 years now.. so I have a lot of experience in about 15 markets.. that I will share with the Rarebird attendee's.. etc.

so do check out My rarebird.. the folks that run it are very invested in PDX rentals .. you can learn a ton.

David Mills · Answer

@Brad Hammond absolutely. Multi families is what I was leaning towards. Thanks for the tips :)

David Mills · Answer

@Mathew Wray thanks, I really appreciate the insight :)

David Mills · Answer

@Jay Hinrichs thanks for the suggestion :)

Brad Hammond · Answer

@David Mills, It is usually easier to find multifamily properties to cash flow so I would look towards that direction. You should also be looking for something where you can raise the rents. That could be through under market rents for forcing appreciation. All the books recommended on the BP podcast are great places to get more information as well.

David Mills · Answer

@Steve Milford thanks for the insight, it’s encouraging. I will! :)

Steve Milford · Answer

@David Mills Having cash flowing properties is about managing the whole process well, whether in PDX or anywhere else. And if you can do it here, I believe you can do it anywhere. Purchase right, know landlord responsibilities, collect rent well, manage tenant expectations and requests, save for repairs, and then keep going.

I advocate people start in their backyard first. Some like more hands-on, and some like more hands-off (means you just pay for it, as someone has to do it). When I evaluate properties, I don't care about cap, 1%, 2%, or any other ratios except income vs. debt service ratio. I like rent to cover expenses by a certain percentage. That's it. Message me if you need more info.

Portland, Oregon Market - Good or Bad?

Portland, Oregon Market - Good or Bad?

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