What's the ROI like in Bend, Oregon?

10 Replies

I'm looking for my second STR vacation rental. Bend rates highly in some recent articles, and it's a nice place to visit. Anyone have experience with STR there? What's the ROI look like (for self-managing)?

One thing I had done is take a look at houses in areas using Zillow/RealEstate website and call PM in area to see local rates and do the math.

I'm still new, but have looked into diff areas and done the same.

I haven't really looked at the stats on VR properties. However; check this link out, it's Eliotandme that is an airbnb calculator. Bend has limitations on short term rentals so you need to make sure the property can be used for that. Sunriver is a great area for Vacation Rental properties, as is the Oregon Water Wonderland 2 subdivision. We have a lot in OWW2, and in fact live in the subdivision. There's access to the big Deschutes River for kayaking, floating, fishing, etc., and a boat launch in the subdivision. The whole area here is planned around outdoor recreation, with winter and summer sports everywhere. It's beautiful too. Are you looking for a house ready to go or a fixer ? 

You need to watch the prices here for something like that.  It depends on who you talk to, but the prices have  REALLY climbed the past few years so it's a question of your own opinion on how much higher they will go.  A lot of people have the idea of buying here and retiring someday - renting until they do - so the market is pretty saturated already with people with that same idea.  I would do very careful due diligence and buy something already established as a vacation rental that has historical numbers for you to see.  Otherwise you will be gambling.  The winters can be quite slow (and we have a long winter) even for the hotels.  They make a lot of money off the summer to carry the year.  So another factor - is an empty rental in winter temperatures.  There are also several new hotels either recently completed or about to complete adding a lot of rooms, so only time will tell if Bend really needed that much supply for tourists.  A lot of locals don't think so .....

Originally posted by @Karen T. :

You need to watch the prices here for something like that.  It depends on who you talk to, but the prices have  REALLY climbed the past few years so it's a question of your own opinion on how much higher they will go.  A lot of people have the idea of buying here and retiring someday - renting until they do - so the market is pretty saturated already with people with that same idea.  I would do very careful due diligence and buy something already established as a vacation rental that has historical numbers for you to see.  Otherwise you will be gambling.  The winters can be quite slow (and we have a long winter) even for the hotels.  They make a lot of money off the summer to carry the year.  So another factor - is an empty rental in winter temperatures.  There are also several new hotels either recently completed or about to complete adding a lot of rooms, so only time will tell if Bend really needed that much supply for tourists.  A lot of locals don't think so .....

 Are there neighboring towns that might make a better choice? What you said about prices rising seems to be true everywhere these days.

I live in Bend and have 2 investment properties in the Bend area and would like to obtain more because of the high demand for both STR and LTR and a good resale market as well. However, at this time in the market, it is hard to find a deal that has a ROI of even 5%, hard to find deals that meet the 1% rule or that cash flow. Not saying the deals aren't out there but it is definitely slim pickings! I've heard the auctions can be a place to pick up deals (with proper due diligence that is) and other foreclosures or short sales. I think the market is peaking here in Bend which is why I have been investing elsewhere.

I own 1 STR here in Bend. I tend to agree with Allison above. The market is extremely high right now. I for one don't think we are peaking, I foresee steady growth for another good while. However, good deals are getting harder to come by. Be sure to be extremely diligent. Also, DO NOT use your local building costs as estimates for what a restoration with cost here. Building prices have soared in Central Oregon and I've seen many investors get tight on cash quickly due to poor sub assumptions.

Happy Investing! 

Yes it is really hard to find deals!  The rental market is really strong right now but there is also a ton of new building, so I'm not sure as those come online how it will affect the rental market.

Ian

Just found a property in Deschutes River Woods (South side of Bend) with two SFR/buildings grossing $1700/mo., priced at $310,000. It's in DRW and can schedule showings. Let me know if you'd like to see it!

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