Bend, Oregon Investment Thesis

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Bend, Oregon Investment Thesis

Brian Bellew
Investor · Denver, CO · Member since 2014 · 36 posts · 4 votes

I own three single family rentals in Bend, Oregon that all cash flow pretty well and have good equity positions.  Bought in 2010, 2012 and 2013.  I now live in Denver but have strong convictions about growth in Bend.  Any other investors with knowledge of Bend that can see this becoming a Boulder or Austin?

Some notes on the area:

-Consistently in the top 10 counties in the US for population migration (Deschutes).

-Oregon State Cascades is building a new 4 year university with anticipated 5,000 students.  The university currently owns 56 Acres of land on the West side of Bend and building started summer 2015.

-Growing technology scene, microbreweries going national (10 Barrel and Deschutes)

-Rental vacancy rate around 1%

-Limited availability of vacant land due to local governments inability to agree on a new Urban Growth Boundary.

-Mt Bachelor expanding by investing in new lifts, and summer mountain biking.

-Located between San Francisco and Seattle (Tech hubs of the West Coast).

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y

Austin or Boulder  No way..  constrained by access to major metro areas and No interstate.

limited Jet service and still a very small community ..

Great little spot though for those that like the 4 seasons and high desert type things.

you did VERY good buying when you did.. as I am sure those properties long term will out perform most anything save the best CA or CO locations..

At the end of the Day Orygun is anti business on a political level.. the UGB restrains gowth tax s are some of the higheset in the country.. So I think it will be what it is.. summer over flow for N. CA or Snow birds... PDX people that want to get out of the drizzle.. and those that like the lifestyle there.

Remember when it crashed it CRASHED hard.. rural Oregon in many areas has 20 to 30% unemployment almost as Bad as Detroit.

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  • James Cash
    Real Estate Broker · Anchorage, AK · Member since 2015 · 170 posts · 46 votes
    10y

    Does anyone have any projections for what this area is going to do in the next 6 months - 2 years? Interested in investing down here.

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  • Jody Powell
    Bend, OR · Member since 2014 · 38 posts · 14 votes
    10y

    I am a bit late to this thread but I wanted to say first of all this is an eye opening discussion for me as I have been struggling to understand how the market works here in Bend. I would also be up for a BP Meetup, if one is held @Account Closed 

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  • Esther Thomas
    Belmont, CA · Member since 2014 · 52 posts · 14 votes
    10y

    Hi Everyone, I don't live in Bend but I love it there and dream of moving there one day. This where I'm probably leading more with my heart than with my head, but I want to buy a place in Bend that will at least break even for me. I want to rent it out (not vacation rental) and eventually move there. I'm wondering if the rental market is hot even for non vacation rentals and what typical rent would go for in the NWX area. Sort of difficult to tell from just craigslist listings as i don't see much for rent in that area. Thanks in advance for any help or insight from locals. :)

    1Reply
  • Melanie Useldinger
    Investor · Santa Cruz, CA · Member since 2016 · 8 posts · 5 votes
    10y

    I really like Redmond because it is close to the airport and Smith Rock brings fame to the area.

    I would like to invest with $50K down .  Any ideas???

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  • Adriel Liwag
    Specialist · Los Angeles, CA · Member since 2016 · 165 posts · 88 votes
    10y

    Hello all, I was wondering if this conversation is still active. It looks like most members haven't replied in a while. I'm a new investor myself and currently working on my 4th flip since I've started in Real Estate last November by flipping homes in Los Angeles. I'm learning more and more how passionate I am about it. With that being said, I myself have been trying to do research on Bend for flips and buy-n-holds for my future. I was wondering if any agents/brokers can help me find a good deal and also give me some more information on investing in Bend. 

    Thanks in advance!

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  • Christy Osterkamp
    Lender · Nampa Idaho · Member since 2016 · 42 posts · 7 votes
    10y

    This string of posts is older, but we are in the Bend area and looking for investment opportunities.  If anyone knows of a Central Oregon established group, would love to know.

    All we have found so far is a Meetup group that does Cash Flow 101.


    Thanks!

    Steve and Christy Osterkamp

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  • Eric Bilderback
    Real Estate Agent · Sisters, OR · Member since 2014 · 1k+ posts · 1k+ votes
    10y

    @Christy Osterkamp

    I just PMed you.  Hopefully we will talk soon.

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  • Account Closed
    Investor · Newport Beach, CA · Member since 2016 · 1 post · 1 vote
    9y
    We're one of those CA families looking at relocating to Bend. I'm in the tech industry but I plan to leverage all the equity we have in our current house once we sell to get the real estate investments going in the Bend area. Do you guys work with any good local banks for funding? I want to start building relationships with local banks there. I look forward to joining the local meet ups once we get there.
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  • Ian Saingarm
    Investor · Bend, OR · Member since 2016 · 52 posts · 15 votes
    9y

    Hi guys I believe Eric setup a meet up for today which unfortunately I probably won't be able to make due to a highly important pickup soccer game but  have a great time.

    @sam Rafael @Kent Martin

    We use on point credit union but also heard good things about Umpqua (not sure if I'm spelling that correctly).  Also, Derek at Everbank downtown is a pretty cool guy to work with and investor friendly.

    Ian

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  • Dean Bliss
    Bend, OR · Member since 2017 · 1 post · 0 votes
    9y

    Hi All, REI newbie in Bend recently relocated from Seattle and interested in developing a network and learning and much as I can about the market and opportunities for buy and hold/brrrr.

    Are there any existing meet ups or REI clubs that folks can recommend?

    @Account Closed I'm also in the tech industry and in a position after selling our personal residence to begin investing locally. Have you made your move and made any progress developing banking relationships and/or creating a network in central oregon?

    I'm eager for any advice/recommendations/direction that anyone is willing to share. Thank you!

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  • Brian Bradley
    Attorney · Wilsonville, OR · Member since 2017 · 504 posts · 411 votes
    8y

    Can anyone recommend some Investment orientated agents in the Bend/Sisters area? 

    1Reply
  • Ethan West
    Bend, OR · Member since 2017 · 16 posts · 2 votes
    6y

    Would love to hear an update from you guys on what your thoughts are on Bend and surrounding areas at the moment...

    0Reply
  • Nicole Galchutt
    Lender · Oregon, Hawaii and Texas · Member since 2020 · 43 posts · 18 votes
    5y

    Would love to hear an update from you guys on what your thoughts are on Bend and surrounding areas at the moment...

    We live in Bend for the last 4 years and there seems to be no slow down. My hubs is realtor and had his best year (or shall we say last 4 mo) ever. Its booming more than ever and rental market is super tight as college students can't dorm and are adding into the rental market. Sisters just got ranked as fastest growing area within Deschutes county, can't go wrong with Central Oregon!

    1Reply
  • Brandi Croom
    Real Estate Broker · Alaska and Oregon · Member since 2018 · 44 posts · 35 votes
    5y

    I live in Redmond and invest in Central Oregon but I haven’t been able to make the numbers work for Bend. There’s been a couple sheriff’s sales that I should have went for but other than that unless you pay cash or find an off market deal, I think it’d be tough. The rental rates aren’t keeping up with the prices this year. My clients that are investors just pay cash. I can’t pay $400-500k in cash to compete! What investment strategy are you guys thinking of pursuing in Bend?

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  • Cory CarlsonBusiness Member
    Real Estate Broker · OR · Member since 2018 · 311 posts · 226 votes
    5y
    Originally posted by @Brandi Croom:

    I live in Redmond and invest in Central Oregon but I haven’t been able to make the numbers work for Bend. There’s been a couple sheriff’s sales that I should have went for but other than that unless you pay cash or find an off market deal, I think it’d be tough. The rental rates aren’t keeping up with the prices this year. My clients that are investors just pay cash. I can’t pay $400-500k in cash to compete! What investment strategy are you guys thinking of pursuing in Bend?

     Brandi, 

    I am finding the same thing. For a traditional buy/hold investor, Central Oregon prices are on track similar to Inner Portlands. In both markets, I am seeing short DOM's for poor performing buy/holds. As far as the flip or value-add, I think its a combination of luck and patience to find a healthy yield. 

    How is it that these small-plex properties, so FAR from even breaking even keep flying off the shelf? Where are these buyers coming from and who is advising they buy some of these things?!

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  • Eric Bilderback
    Real Estate Agent · Sisters, OR · Member since 2014 · 1k+ posts · 1k+ votes
    5y

    @Nicole Galchutt

    I think Central Oregon is as solid the area is becoming more diverse economically and it has a great quality of life. The things that worry me are on what is going on in the macro economy with shutdowns etc. But if you were going to buy a place this is as good as any. As others have referred to however CAP rates are pathetically low!

    1Reply
  • Nicole Galchutt
    Lender · Oregon, Hawaii and Texas · Member since 2020 · 43 posts · 18 votes
    5y

    I agree- feels pretty solid here in Central Oregon. Question for those in the area. We have a great family in our rental here but if they move out I’d love to try rent by the room strategy here. Seems like with dorms closed for now that it may be a good strategy- curious if others are having success with that?

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