Is it a good time to invest in rental properties in Portland?

5 Replies

I live in San Jose, CA and my office headquarters is in Vancouver, WA area. I keep traveling to Portland every month. I am seeking opinions to invest in rental properties in and around the Portland area. Is it a good time to invest? What are some good areas I should consider? Any inputs are appreciated. Thanks.

There are lots of variables like location, strategy, financing, the deal by itself etc to answer your question. RE Portland has been appreciating though at different pace in different period of time. In 2018 til now, the appreciation has gone slow due to high vacancy rate and the interest rate has gone up a bit as well. The price is still high however has been stabilized. For a long term holder 10+ year I think it could be the moment to pull the trigger if the deal is right.  

Morning Feroz, 

I'll echo what Kelvin said. There are lots of variables about whether it's a good time for YOU to invest in the Portland market. Without knowing your goals, it can be really hard to give advice about specifics. In general, Portland is a great long-term market with a stable economy and a positive future outlook. I'm definitely bullish on the long-term outlook here. You can control a few factors when buying: down-payment/cash-flow, location, tenant, and condition...and you're not likely to get 10's across the board in all of them. 

Since you're traveling to Vancouver I would look in closer towards the North end of Portland: St. John's and Cully are good growth areas as well as Montavilla. If you're willing to go a little further then Oregon City and Milwaukie have some great opportunities. But again, it depends on your goals. Close-in can be a great buy as can the West side out by Intel and Nike. 

Let me know if you'd like a little more info on specifics or if we can help in any help!

Mathew

@Feroz Mohummed I would look into rental properties in Vancouver. Landlord laws are a little more friendly there and the area is undergoing significant growth right now that is starting to attract large scale development interest. The 1.5B waterfront project is a prime example of this. I foresee that the proximity to Portland combined with lower tax rates will continue to make Vancouver a desirable city for millennials to settle down in. 

Hi @Feroz Mohummed I second what @Caleb Webster is saying. Vancouver is a very strong market as well. Another thing to consider is the cost of housing is less in Vancouver so you can get more for your money. Additionally, if you purchase a property in Oregon, you'll have to pay Oregon income tax (nearly 10 percent) where Washington doesn't have an income tax...

Hi @Feroz Mohummed , I agree with all the comments so far and would echo the thoughts about Vancouver, WA.  I find it the most compelling area to invest in for single families in the entire Portland Metro area.  Is it a good time to invest?  I would say on the macro level that answer would be no because most houses you would look at on the RMLS would not be good investments at the current prices.  But, if you network and are able to find a good agent and put in the time there are still good properties to find as investments even on the RMLS (other methods that get you off market listings might be a good approach as well).  And if you choose other parts of the Portland Metro area I still think they are good investments if you are picking the west coast.  The quality of life is superb with an incredible amount of natural wonders (that can't be manufactured in other areas) within a hours drive.  Wherever you choose pick a premium location with easy freeway access, good schools, good healthcare options nearby and closer to PDX airport (less then 30 minutes).

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