There is a group called the PII (Portland Investment Initiative) that are heavily invested in the area. What are your thoughts on the potential for appreciation here?
I wouldn't count on appreciation there. Many of the forced appreciation intitiatives that the city and some developers were really trying to force over there haven't really taken root. The smart money seems to have moved on to Shelby park.
@Zachary Peacock Your money will die a slow death there. I'd stay away...
There are many other areas in Louisville that have much better returns and appreciation. My 2 cents...
The list of things I don't like about investing for appreciation in Portland right now is fairly lengthy, but it essentially boils down to this question. Do I believe the area will develop?
Demand raises home prices. Per Louisville Magazine, the average income in the area is something around $10,000..... per YEAR. Where are the owner occupants going to come from? Why would someone leave the Highlands, Germantown, St Matthews, J-Town or Shively for that matter to move to Portland? Where are the bars, restaurants and jobs? Even if the waterfront is developed, why would someone want to live on that side of downtown when so much exists on the other side?
I can't answer these questions, so my answer to the initial one is a resounding 'No.' I may be wrong and someone may make out well. Most of the city offers good cash flow and appreciation. It may not be 'home run' quality, but its better than many places. I'm take the base hits all day long.
I have 23 units in Portland, the people there can be challenging to deal with, and that alone is reason to buy in another area. I bought in this area because in 2009 they were all ON SALE, no banks were loaning money, and I had enough cash to purchase properties without a bank loan. I've learned several hard lessons since then and if I had to do it all over again, I would definitely buy in a better area of town. Buy properties in areas where people WANT to live, not where they HAVE to live because they can't afford better. I'm doing well because I've learned how to screen tenants well. I don't count on appreciation, I'm strictly running my numbers based on cash flow.