It may be a mild case of Big Brother, but I can see what searches result in visits to the site. One of the most common recent inquiries is about whether the Portland real estate market is a good investment market.
Last week, I wrote “What Do We Look for In Investment Properties?” That’s our strategy. We may have to adjust in the future but for now we are happy with it.
The investment market has changed. The proliferation of condo towers appears to meeting market demand now where in past years there was a clear shortage. Buying a condo today may not have the flip potential it did just 18 months ago. I’d agree with a recent newspaper article (sorry, can’t find) that said that a buyer who got in months ago will probably do okay with their investment. Those that get in today may have a harder time. We’ll have to wait and see. Developers are pushing forward with their plans to build.
There is always going to be a rental market. The challenge for the investor is that rents have not increased at nearly the same rate as property prices. We used to look for positive cash flow with 20% down. That’s getting increasingly challenging, especially with the close-in property that we covet.
Where would I look for property? North Portland, especially around St. Johns, SE around Division, and other close-in neighborhoods where there are still a lots of homes in need of rehab. As the neighborhood matures, the entire area benefits. When we bought our first investment property on NE Ivy, only one house on the street had been recently remodeled. Five years later, there were only a couple of houses on the block that had been updated. It was an area that pizza chains stopped delivering to in the 90s!