Input? Considering condo on Oregon Coast, longterm rental

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Hey All - hoping to talk this out and see if anyone is doing similar?

I'm considering in investing in a condo somewhere on the Oregon Coast. Looking in the range of 200-300k. My plan would be focusing on longterm rental, and not short term Airbnb it.

I've been researching heavily and see how the different coastal towns have been tightening up restrictions on short term rentals. Because of that (and other reasons), there is a shortage of long term rentals on the coast.

I would be aiming to do a 10% downpayment. I wouldn't expect to be cashflow positive, but hoping to get a long term tenant in at a rent that could cover the mortgage.

I have not decided where on the coast yet, but understand location obviously plays a big part. Additionally I know the other big thing is the HOA, and how well they have kept up on things.

While I don't have a exact property picked out, i've been simmering on this idea for a while now. I'm wondering how feasible it would be to do this with 2 or 3 condos on the coast? Other then the location and HOA, are there other things I have not thought of? Is anyone else investing in longterm rentals on the coast?

Thxs for the help

Hey Eric, 

Good thoughts there...the coast is such an impacted market (much like Bend and PDX) with a lack of long-term rentals. While rents are lower than what you'll get in town, you'll also find lower price points. 

Just something to simmer on and think about. I know of a handful of folks who had STR condos on the coast and have converted them to LTR during Covid. Could be they go back to a more lucrative STR model in the future, but for now I would be cautious/concerned about a lot of those coming on the rental market. You'd have to either target a different demographic or know that a nicely appointed STR is going to command a higher rent when you're looking for comps.

There is a definite need for housing on the coast but you might be better off looking in that range for homes to purchase so you can avoid the HOA issue (unless you're specifically looking to that to solve an exterior maintenance problem for you?). I'm generally leery of HOA's as rentals although there can be a few slight advantages if you're aiming to go that direction.

Might consider your payment as'll qualify for more "home" without the HOA and have the same payment.

Lastly, do you have a local bank out there that will get you in for 10% down? I could see picking up one as a second home on a 10% down loan and converting it to a LTR as your agreed upon time commitment is up, but might have trouble finding someone to finance multiple condos at 10% down. Would love to know if you have a connection who has that available?!