First time investor - Good to still buy in Portland?

Question

Hello

I'm interested in property in the Portland & Hillsdale area. Any suggestions on whether or not it's still a good idea to invest in this area? I know that a lot of people are getting priced out. And that rent control may be a factor in the near future.

Thanks for the feedback!

Robert Laird · Answer

Karen L., which I think he really hit the nail on the head with his comment,: :"it's important to realize that there is still a big physiological barrier for people".

People love Vancouver because it is cheaper and because the income tax in Washington is nicer come tax season compared to an Oregon address, but you must realize there is a reason for the price difference. Just because during off hours I can go from my office on Mill Plain to my house in SE Portland in only 20min, the majority of the time, the traffic is really bad and I have heard horror stories of it taking 3 hours to go 15 miles.... So just because it looks close, doesn't mean it is convenient. As Neal also mentioned, the I-5 bridge is not very commuter friendly especially when it is raised for boats.

So although Vancouver may look appealing due to the lower price point to get in, I do not think it has the same appreciation potential as Portland does, which is partially what makes the buy and hold so appealing. It all depends on your strategy. We bought a duplex near downtown Vancouver for $100,000. Something like that is hard to find in Portland...

Neal Collins · Answer

@Katy Lyons I'm not sure I'd call those great finds. There's reason why they've been sitting on market for awhile.

Karen L. There are big plans for Vancouver. The Port of Vancouver and other developers are just now starting a multi-year project that will redevelop the waterfront. It will still remain disconnected from the downtown area due to the train tracks which is the only big downside. It'd be great if the site could flow seamlessly from the development sites into downtown, like Southwater Front and the Pearl do in Portland.

I think the Vancouver market overall is a good place to hunt for deals. There is a lot going for it and if they can figure out the whole mess with the bridge then even better. With that said, though, it still is very much tied to the Portland market and i think it's important to realize that there is still a big physiological barrier for people to want to move from Portland to Vancouver.

Melissa Dorman · Answer

I'm in the LA market and was about to buy a duplex. Then my partner got into Grad school in Portland. I ran the same numbers up there and was sold. Way better returns than Los Angeles and I can guess Bay Area as well. Instead of a duplex, I am shooting for a 4 plex now. If you are investing from out of state, you might loose a lot of the value that comes with being on the ground. If you are considering the move, I would go for it. Actually, I am going for it. haha

Katy Lyons · Answer

http://www.portlandhometeam.com/portland-multi-family.php  Here are some great finds....

Say Teoh · Answer

Karen L., welcome to BP! I might be bias :), but I think Portland metro area is still a good place to invest on the west coast, much cheaper relative to other major west coast cities like SF, LA and Seattle. especially for appreciation, but harder if you are going for cash flow. I suggest expand the area you look at beyond Hillsdale. Do you have a specific type of investment properties you looking for? Let us know your goal, and I think some Portland folks can give you some suggestions.

Thanks

Say

Katy Lyons · Answer

Hi Karen, I live in Portland and yes, I have been hearing rumors of possible rent controls as well.  However, I don't know how soon they will be implemented....???

House sales are still pretty hot from what I have heard - however there is one underpriced market where I bought my personal residence - the Milwaukie area.  I don't know how much longer it will stay like this - but it is an old blue collar town - very close to downtown Portland, but on the east side (Downtown is on the West side).  I think it is a diamond in the rough.

As for the Hillsdale area, I don't know much about the values over there.  I used to live in that neighborhood many years ago - it is really nice and also very good access to downtown PDX.

Karen L. · Answer

Vancouver? That's a great idea. Can anyone give feedback on Vancouver WA?

Robert Laird · Answer

@Kiki Helland we ended up fixing it up and selling it to an investor for $220,000. However, each unit was producing about $1,000/mo each. So roughly $2,000/mo for the whole duplex, which still almost hits the 1% rule when we sold it at $220,000.

Kiki Helland · Answer

good points! Regarding your duplex... Are you getting rents that support a decent positive cash flow? It seems like there is a demand for rentals despite the commuting horror.

Kiki Helland · Answer

Hello.

Have you considered looking in the Vancouver, Washington area? I gave up about a year ago and got an Investment property in California. but I still have my eyes open for a good deal there. I understand that there are big plans for developing the waterfront area  in Vancouver to connect with the downtown area. Maybe someone can chime in how that development is moving along and if it's still possible or advisable to bank on buy and hold for awhile?

First time investor - Good to still buy in Portland?

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