I live in the portland metro area, all my RE connections are already established. I am now looking for a small mutifamily deal, 4-20 units. It seems all the big players and gurus won't even look at a state like oregon to invest in b/c it is not landlord friendly. But because of that, it seems like there may be some great deals to find b/c of less competition? Mainly Value Ad. Cap rates here are 4.5-5.5%ish, what are your thoughts of doing my first deal here in my backyard vs. going to a landlord friendly state like every other investor out there?
Real Estate Broker · Portland, OR · Member since 2019 · 21 posts · 21 votes
4y
Eric,
I am a born and raised in Portland, OR and own 10 rental units here myself. Portland definitely has some "strict" landlord- tenant laws, but I am a huge fan of the Portland Metro area for investment real estate regardless of the laws that we have here. Portland is a "hybrid" market because you can still find deals that will produce positive cash flow and still get to benefit off the great appreciation that we have here! If you are weary of the landlord-tenant laws, I recommend having a property management company do the daily activities so you do not have to spend hours trying to keep up with the rules and regulations that are constantly changing here.
As a small multifamily owner myself, I highly recommend finding a deal in the Portland Metro area.
Real Estate Syndicator · Milwaukee, WI · Member since 2018 · 1k+ posts · 907 votes
4y
If you can find a great deal in Portland that outweighs the risk of the crazy laws, then it might be worth it. If you are looking to syndicate the deal, it might be harder to attract out of state investors into your deal. If your network of investors is local, they might be okay with it since it is a familiar area.
Real Estate Broker · Portland, OR · Member since 2019 · 21 posts · 21 votes
4y
Eric,
I am a born and raised in Portland, OR and own 10 rental units here myself. Portland definitely has some "strict" landlord- tenant laws, but I am a huge fan of the Portland Metro area for investment real estate regardless of the laws that we have here. Portland is a "hybrid" market because you can still find deals that will produce positive cash flow and still get to benefit off the great appreciation that we have here! If you are weary of the landlord-tenant laws, I recommend having a property management company do the daily activities so you do not have to spend hours trying to keep up with the rules and regulations that are constantly changing here.
As a small multifamily owner myself, I highly recommend finding a deal in the Portland Metro area.
Rental Property Investor · Aurora, OR · Member since 2017 · 3 posts · 0 votes
4y
@Eric Berkner Hey! I'm looking to sell two 4 plexes in Molalla in the next few months. Not sure on the value yet, but they've been great for us. Always easy to fill with quality tenants. I'm pretty new to bigger pockets, but feel free to message me if you are interested.
Investor · Newport Beach, CA · Member since 2019 · 190 posts · 176 votes
4y
@Eric Berkner I've been investing in Portland the past 7 years. I agree that investments there require more conversations with investors but there are plenty of experienced sponsors still investing in the area. I don't know about properties with less than 20 units but I haven't seen anything more than a 4.25% cap rate the past 12 months. Larger, institutional properties, are 3.5-3.75% cap rates which believe it or not is a discount to the 3% cap rates in cities making the headlines. Portland metro might not get as much attention but the suburbs are still very heavily pursued.
@Eric Berkner Hey! I'm looking to sell two 4 plexes in Molalla in the next few months. Not sure on the value yet, but they've been great for us. Always easy to fill with quality tenants. I'm pretty new to bigger pockets, but feel free to message me if you are interested.
Yes send me some more info on those 4 plexes. I’d be very interested :)
Investor · Detroit, MI · Member since 2014 · 97 posts · 40 votes
4y
I think investing in your own backyard vs out of state can be very beneficial in some insistences. Because you are more familiar with the local market, you understand the local laws in your state, and it can be slightly easier to get boots on the ground and build a team in that area. Being in a state where all the big name multi family investors or Guru's aren't investing in, shouldn't stop you from investing in the area.
In my opinion, the only problem with investing in Portland is whatever you buy today won't cashflow great for 2-3 years. It's not a deal-breaker. Just gotta do those 9% rent raises every year for a few years in a row.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
4y
Portland (and Oregon in general) can be a great area to invest in. I own 2 small new build MFs (20 units total) .... The one thing to keep in mind when thinking about repositioning a building is that in older buildings you cant just jack rent up - we have rent control.... and if you evict someone for no cause you need to pay them to relocate. I guess my point is please educate yourself!