Portland, OR · Member since 2016 · 7 posts · 0 votes
Hi there,
I'm a young and hungry investor on the hunt for deals. But I live in Portland, OR so that means contending with high prices and fierce competition.
I'm wondering if there are people out there in a similar position, and what areas outside the metro area they are focused on?
I have my eye on Salem, which seems to offer a lower barrier to entry (price-wise) and, considering it's where the state government is run, provides for a stable demand for housing.
But are there other pockets (say, within 3 hours from Portland) that are worth looking at?
Note Investor · Wilsonville, OR · Member since 2010 · 149 posts · 113 votes
9y
I had to go a completely different route, partly because of what you describe above, but mainly because I have a full-time day job that restricted actively marketing for real estate. I chose to invest in non-performing promissory notes secured by real estate in various targeted spots across the country. This is a b2b business that allows me to hold my full time job and invest nationally, with the only requirement of having a quality internet access. Plus, I can purchase assets at better pricing than real estate, and there is plenty of assets.
Note Investor · Wilsonville, OR · Member since 2010 · 149 posts · 113 votes
9y
I had to go a completely different route, partly because of what you describe above, but mainly because I have a full-time day job that restricted actively marketing for real estate. I chose to invest in non-performing promissory notes secured by real estate in various targeted spots across the country. This is a b2b business that allows me to hold my full time job and invest nationally, with the only requirement of having a quality internet access. Plus, I can purchase assets at better pricing than real estate, and there is plenty of assets.
Flipper/Rehabber · Bend, OR · Member since 2016 · 209 posts · 87 votes
9y
@JP Crowe, I have recently helped two investors with purchases in Salem. They couldn't compete in Portland because their price point was 260k or less (which is near impossible here). We had major luck down in Salem. I think its been getting more investment attention from Portland investors recently, so I am sure it will get more competitive in the future.
Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
9y
it's not just Salem or Marion county. All previously cheap outlying areas ( Columbia, Yamhill, Hood) are seeing good appreciation, particularly on the low end, equal or greater than Portland. This is all forced appreciation as investment dollars have to find assets to bid up and low interest rates and dividend yields make real estate an attractive choice.'
I argued last year with a local blow-hard putative expert at "Scarce chicken" that forced appreciation would force steep rises in the secondary, feeder, markets and, at least on the cash flowing end, despite his cynicism that is exactly what's happening
Specialist · Indianapolis, IN · Member since 2014 · 670 posts · 352 votes
9y
@JP Crowe your experiencing what we've all been up against here locally. My bread and butter was the outlying areas such as Oregon City, Canby, Mulino, Dallas (OR), Salem, Forest Grove, Yamhill, etc and I did well in those areas. I mostly invest out of state now as the returns are much better and I can do more projects. I'm wrapping up 4 deals locally and then I'm done flipping in this market unless a homerun comes across my desk. If you need an investment minded agent I can give you a reference.
Portland, OR · Member since 2016 · 7 posts · 0 votes
9y
@Steve B., I guess it all depends on where you are on your investor journey. Your blow-hard companion may not fit the bill but I've noticed that more mature investors are just naturally more skeptical of future growth outside the metro. If I was a more experiences investor that had rode the wave of appreciation since 2008, I would be a lot more conservative in my outlook as my goal would now be to protect the wealth I'd already built while aiming to sustain growth. In that case, staying in the metro is a safe bet, and there's still great money to be made if you can compete. This is a nice vantage point, but I do think it tends to distort the picture a bit.
Well that is until the wave comes crashing down again and the west coast metros prove them right, as they certainly are equity havens during a downturn.
In my case I'm at the start of my investor journey (and not ashamed to admit it, after all, you have to start somewhere). As such I would rather not compete in the metro and am happy to take on a little more 'risk' and earn less, if it means I get some solid deals and most importantly, get the learning experience. From this perspective I see opportunity in the feeder markets and generally a more rosy vista.