What kind of plays are available in Oregon?

Question

Hi BP!

I know conventional wisdom is that the West Coast is not friendly for cash flowing investments. I'm about to 1031 and am looking to buy and hold for the greatest yield. Can anyone recommend sub-markets in OR or other plays I might consider?

Thanks,

Adam

Darren McGillvrey · Answer

@Adam Byrne My last two deals in Eugene area have produced the 1% rule. Prices are still "reasonable" compared to other areas in country. The biggest problem we have here is the huge housing shortage we have and the city of Eugene hasn't expanded the urban growth boundary for 40-50 years!!!

Neal Collins · Answer

@Adam Byrne I'm in the same camp as our friend @Mike Nuss. Single families will be tough, and even if you're coming in all cash it will yield a low return on your equity. In a low cap environment you can create serious equity by honing in on multifamily properties that you can breath life back into with cost-effective upgrades and good management.

Mike Nuss · Answer

@Adam Byrne if you're exchanging out of LA, then Portland will be a great market for you. I absolutely love multi family in markets like the west coast. You can do half the work in a 4 cap environment and make the same return as investing in an 8 cap market. They're also much better markets if leverage is part of your investment model.

If you prefer to stay out of Portland itself....Milwaukie, Oregon City and Gresham are good submarkets for MF and SFR.

Adam Byrne · Answer

Hi Neal, I'm looking for SFRs or multi family units.

Neal Collins · Answer

@Adam Byrne What kind of real estate and asset class are you looking for?

Adam Byrne · Answer

Thanks, Nels! I sent you an invitation to connect.

Nels Norquist · Answer

There are a bunch of duplexes that just came on the market in SE Portland, sellwood area.  Doesn't happen very often. The won't meet the 1% rule probably ever

Asking 475k currents rents total around 3k a month, could probably be closer to 4k with some updates.

Get down toward Salem and I think you can get close to 1%

Looking around Portland I would guess you are holding for appreciation more than long term cash flow, so you might want single family over multi.

I have gone east coast for cash flow, but now that we have some money coming in I would like to get back into Portland for flips and long term appreciation.

Would be happy to help you look around or send you some current stuff on the market if you are interested. Good luck!