Get that Cheddar - Oregon News
Hello Oregon BP.
I previously posted interesting tips like Oregon's repeal of the tsunami zone building law and how to properly househack in Oregon. Since then COVID made me anti-social lol. With things starting to look good for socializing again, I thought I would start giving news/tips again and more often. Before everyone starts asking about the title "Get that Cheddar!" comes from my brokerage "Cheddar Realty" and my hopes to create an investor meetup called "Get that Cheddar! Real Estate Meetup" in the near future. Anyway, back to the news!
-HB 2001 Oregon ADU and Duplex laws soon to be integrated.
The law that forces medium sized cities to allow duplexes for building and conversions in residential zones will soon take affect. It is supposed to be integrated June 2021 but I am sure there will be some extensions by some cities.
**Tips for taking advantage of this
City of Salem: starting July 1, 2019, the System Development Charges (SDCs) for ADUs will be waived for five years. The waiver will continue until June 30, 2024. Great way to save money on the ADU build.
For the househackers on their second purchase needing to use a conventional loan, Buying a "Dual Living" or Large home might be a great way to go considering they are likely in nicer residential zoning and would be allowed to convert this year.
Next tip is for Househackers.
-Want to buy a home as a househack but current rent on the occupied unit very low? Try a 60day no cause termination.
If you move into a property and it has only 2 units then you do not need an official reason to terminate a tenant like every other investor does. This will allow you to analyze potential deals better based on market rents instead of current rents.
-How do I make money in this crazy market?. Look for potential and get creative.
There are many ways to look for potential. Buying a home/multifamily with dens/offices and convert to bedrooms. Buy a dual living home to convert to a duplex soon. Buy a home with a good sized yard and good sized access to the back for your next ADU/AirBNB. Buy a home with a large detached 2car garage to convert to an ADU. Maybe the investment is better rented to traveling nurses or students? etc.
-Cities to watch for in the Willamette Valley Area.
Pretty much all of them... but some are sticking out to have amazing appreciation and competition.
*Independence - This town was starting to get know as a great small town filled with live events. They started tons of construction downtown including a new hotel and luxury river rentals and then COVID hit. The cities efforts are still paying off with a amazing appreciation both in values and average rents. This little town benefits from student rentals, tourism through events, Willamette River, and a slowly expanding downtown scene.
*Lebanon - This town was known as a bad town for a while but has seen tremendous growth in the last few years. Western University opened up in 2011 invited a large amount of medical students and other health services. the growth started a bit slow but seeing the success of the university and its efforts to expand investors are flocking this town.
There are many more things going on in more towns but this post has gotten too long and I will leave the rest for another post. If you like the news and want to contribute to the next post please let me know!