All about Oceanfront Luxury STR's in Oregon and where to buy or invest

The top ten lists of most productive or lucrative vacation rentals or STR's are often around coastal or Beach towns. On the Oregon Coast luxury oceanfront or oceanview vacation rentals often have very consistent and higher than average gross income and productivity. 

Having worked with Vacasa's Real Estate team for many years, I've reviewed hundreds of financials for productive vacation rentals and have noticed a trend in income production for luxury properties on the coast from Brookings to Lincoln City to Rockaway Beach and beyond in Warrenton. 

Prime oceanfront or oceanview properties can generate very high and consistent income. During COVID there were luxury estate listings that generated $250K plus for many years, those price points have now increased to the $1.75M+ mark. We recently sold an oceanfront STR in Rockaway Beach for $1.5M that was fully furnished and should generate $175K+ with some listing traction. Even through this recent winter, the home was booked and filling up fast. 

There are several off market oceanfront homes in Lincoln City that produce $200k like clock work and a recent luxury duplex in Rockaway Beach was grossing $300k!? and sold for near $2.1M. That was a steal.. 

There are some luxury rentals that are currently STR's that the new owner wouldn't be able to secure a permit but the metrics are still useful.. A $1.75M 'Iron Man' estate was listed and producing $185k+ but has since come off market due to permit issues..

Several large Oceanfront estates are on market in Lincoln City Oregon but are subject to a waitlist for the owner(s). There are some pockets or commercially zoned properties that are excluded from this zoning requirement or STR waitlist. 

Oceanfront vacation rentals and STR's in Oregon are definitely limited in quantity and volume and there are only a handful Statewide available and eligible for a permit on market at particular time. 

Some things to consider when purchasing an Oceanfront Vacation rental or property on the Oregon Coast: 

- Maintenance and inspections. The weather and climate on the Oregon Coast is harsh on properties. A solid inspection and second look at the roof is critical. As with budgeting for unexpected costs. 

- Get a Hot Tub. Most luxury rentals on the coast have a hot tub. People and guests certainly love them. Personally I'd elect for a barrel sauna, but Hot Tubs generate bookings. Be sure to account for extra hot tub maintenance cleaning and costs. 

- Views and an 'accessible' beach. The 'beach' in Oregon is more like the ocean. It is not crystal clear blue waters, it is the North Pacific Ocean. There are very few areas along the 400 mile or so coastline that are super accessible. Guests paying a premium price desire premium access. 

- Proximity to airports or amenities. The closer to Portland or a main airport the more likely for 100% occupancy in season and bookings during holidays and winter time. That's not to say properties south of Florence or beyond don't produce. There are many easy flights to Eugene and even though it is a 3 hour tour to Bandon, with it's world class golf resort, actually attracts hard core golfers in the winter to play as the game is intended to be played..in the rain! 

If you're looking to invest in a coastal Oceanfront or Oceanview STR in Oregon request a link to our STR HOT SHEET or a FREE Pro Forma.