Investing on Oregon coast

5 Replies

Hi, I'm new to REI (since 2/2020). I'm looking into investing in Lincoln City. Are there any wholesalers servicing this area? Are there any investors investing here? Just want to connect. Thanks. (I'm located in Oregon City.)

Hi @Rebecca Pike ,

My mother lives in Lincoln city so we visit there often and each time I go I think about buying in the area. The tourist population has grown immensely in that area. The problem is that the general day to day population has not grown much. Vacation rentals on the waterfront will kill it but trying to get your hands on one of those for less that $800k is nearly impossible. It's a weird market. Just not a great economy besides for tourists coming in. If I could find a BRRRR property on the waterfront somewhere between Lincoln city and Waldport, I would be a buyer. Haven't done a ton of research as of yet, haven't spoke to any realtors, and I doubt there would be any wholesalers targeting such a small area. With that beings said, it may be a great area to start your own marketing campaign. This is all my personal opinion. Of course others may differ.

I'm a Lincoln City based Realtor w/ a primary focus on vacation rentals for buyers and sellers. @Justin Frank is correct, the Oregon Coast is a bit of a weird market for REI... The best thing the Oregon Coast has going for it from an investment perspective is fantastic appreciation over time with tons up upside... but there is really no cash flow for the Oregon Coast for short term or long term rentals.

With short term rentals the seasonality suppresses the gross rental revenue to get great cash flow unless you come in with 50%+ down, with that kind of down I can find vacation rentals starting in the $350k range that will show decent cash flow. For long term rentals the market it just too expense... no such thing as a 1% rule for long term rentals over here, everything is <1%, even with a lack of long term rental options.

I don't know of any active wholesalers over here (if there are I'd love to connect), not enough opportunity to find the deals most likely. There are plenty of dilapidated non-occupied homes rarely/never used over here that someone interested in BRRRR could probably find some opportunities with. Likely it would take a long term mailing campaign to score one.

The large majority of people I end up finding vacation rentals for are happy to break even with about 30% down. The intrinsic value usually plays a big part in their final decision more so than pure investment decisions. Over time appreciation along with debt paydown will pay dividends, but for someone just getting started with real estate investing there are much better markets in the country to get started for both long term rental and short term rental investing.

If a cash flowing short term rental is the top goal do a search engine search for the top 25 vacation rental markets, you will find several articles with some great insights.

Thank you Justin and Taj. Thanks for your insights. It would have to find a real deal! 

I'm looking for BRRRR deals right now. I agree it's hard to make the numbers cash flow. Some are getting closer now number-wise. (With the winter coming on it seems like deals aren't selling as fast.) Everyone I've talked to in the city says there's a real lack of long term rentals.

Appreciation seems like an angle if I love the property enough to just break even for a few years.
I might just have to start a direct mail campaign. :-) Thanks!