BRRRR in Oregon or Washington?

Question

Hello all,

We live in Portland OR and are selling a single-family property on the East Coast.  We would like to 1031 the proceeds into a new property within driving distance of Portland and would like to slowly continue to cluster investments in whichever community we choose.

Questions:

Are there clear advantages to buying in Washington state over Oregon or viceversa?   Idaho is also in play as a landlord friendly state but it doesn't quite fit the driveable criteria.

Are there resources that are helpful for finding advantageous markets based on landlord/tenant laws, economic growth, tax advantages in the state or other indicators?

Thanks all,

G

Justin Frank · Answer

@Gerich Fellermann

I agree with @Jay Hinrichs. Longview has great prices but beware of your tenants there. Longview seems to be in s hard place right now. Lots of abandoned commercial properties and an area of high drug use.

Gerich Fellermann · Answer

Thank you all for the thoughts - much appreciated.

We would continue to live in Portland so while moving to WA to avoid income tax is attractive, it is not happening at least until my daughter is through school.

Hood River is a great town but seems to be further along the development curve - I'd love to find a bit more of a sleeper and have also thought about Salem.

Thanks again all.

Justin Frank · Answer

Can’t agree with you more @Jay Hinrichs. I would love to own some real estate in Hood River. Such a cool little town and less than an hour from Portland.

Jay Hinrichs · Answer

anything up and down I 5 that makes sense works..   I built a community in Tangent .. that's a little sleeper.

Jay Hinrichs · Answer

one could also go out the gorge..  I built about 35 homes in Hood River a few years back that town is booming.. fix and refi would be quite good there.. and if its allowed Airbnb would rock 6 months of the year or so.. just advertise in wind surfer magazine.. plus its a really cute town..  My wife was born in Longview and grew up   up river Cahtlamet  Puget Island.. it was a thriving timber/fishing town up until about the mid 80s  just like most of the WA coast  its pretty dead now and has been for years.. No jobs..  at least longview has jobs  but because of the cheap rentals you also got the tweakers in mass..  one could continue up 1 5 to the next towns north.. might be something there.. Castle Rock.. etc.    Also going west of PDX Vernonia might be a sleeper.. St. helens is pretty hot right now..

Jay Hinrichs · Answer

Oregon just passed a form of rent control state wide.. and city of Portland passed further rent control.

this has many jumping over the river to Vancouver..  you pay income tax in the state you live in.

so if you came this way and generate income in WA there is no state income tax.. although there is sales tax and Oregon has no sales tax.. Although for most income tax is more important than sales tax.

Many that live in S. WA can jump the river and shop tax free. that's kind of best of both worlds.

traffic is an issue between the two areas these days.

If you go up I 5 towards longview prices are better but tenant quality is something that has to be monitored ..

Brad Hammond · Answer

Also, look south toward Newberg & McMinnville.  They have lower prices and people are moving down there from Portland to escape city life.

Riley Gallagher · Answer

What are your thoughts on Salem, Jay?

John Chapman · Answer

There is no state income tax in Washington.

BRRRR in Oregon or Washington?

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