I will be looking to buy a 3br single family home in Portland, Oregon within the next few months. I am drawn to the idea of minimizing my housing expenses through house hacking and understand multifamily homes such as duplexes and triplexes are difficult to come by in Portland proper. As such, I am considering a rent by the room situation. Any advice on what neighborhoods to consider? Ideally I would like my property to attract younger tenants (under the age of 35). My budget is 500k.
Are there any neighborhoods you would like to live in? Or are drawn to?
Know of two different people w/ 3 bed houses renting by room in Tigard area successfully.
I agree with Bruce, start with areas that will build up your life...where do you work? Where do you hang out? Where are your friends? Then do what you’re talking about and layer in the qualities in an area that will attract those younger people you’re looking for to narrow down to neighborhoods.
Are you willing to be in Multnomah county/Portland proper/Milwaukie or focusing on Washington and Clackamas county? That’s definitely a deeper conversation around risk vs. reward and what your outlook on the future is!
property tax's are highest in Multnomah county.. sometimes finding something that is on the border but actaully in CLACK or WA county can save you year in and year out.. For instance i had a townhouse up by the zoo.. mult co one side of the street I was in WA county.. and i KNow i saved on taxs
Thanks everyone for the feedback. I am not very familiar with the Portland metro area in general, as I currently live out of state. My reasoning for buying in Portland as opposed to neighboring areas is due to the following:
1) Walkability, biking, public transit, and amenities such as bars/restaurants are very important
2) I am hoping that a home in Portland (as opposed to a more suburban community in other counties) would attract a younger demographic. This logic could very well be flawed, however.
3) I am hoping it would be easier to attract a working professionals who want to minimize commuting times by living in Portland proper
4) I am planning to hold the property long term and will eventually convert to a full time rental. I am thinking (without any evidence) that Portland may be a safer investment long term.
The tax implications for owning in Portland vs a neighboring city is certainly something I should consider more fully. However, these costs will hopefully be mitigated some by the income I receive from my tenants.
@Bruce Bingham and @Mathew Wray would appreciate any insights you have on possible neighborhoods, as my understanding of Portland neighborhoods dynamics is somewhat limited.
You can attract some of those same tenants in outlying areas as well (think Nike/Intel)...biggest hurdles are future of landlord tenant law in Portland. That's where the risk reward ratios come in and are a conversation to have before I'd get too focused on neighborhoods. Your decisions there will help drive the "where" conversations.
Portland has some great neighborhoods! Are you planning on moving to portland to live in the house hack? If not I would definitely be very wary of trying to rent rooms from far away. Not saying it can’t be done, but I know it’s not a property that we would manage.
Nw is a great walkable neighborhood, anything close to the water is good too. I know St. John’s is up and coming. SW has a new max line coming in 6-10 years.
Best of luck.
Based on your criteria I’d check out Sellwood or saint johns areas
@Patrick Cousineau , I have a rental in St. John's and I really like that area. You will need to be careful though because there are good areas and bad pockets. Also check out SE (Sellwood).
I am also looking for good areas to invest in Portland and I just did some research on St. John. It sounds interesting and I would love to hear more about your experience with your rental. Does it cash flow well? What kind of tennant does this area attract? Where are the "bad pockets"?
Here is what I have found: About St. John neighboorhood