Rental Properties & Real Estate Investing in Portland, OR:
The Pros and Cons
Over the last 20 years, the available options you have for investing your money have skyrocketed. The Internet has made available investment opportunities that your grandparents and likely, parents, never even dreamed about. That brings up an interesting question for new and seasoned investors, alike: Are rental properties still the best investment for my money?
If you’re reading this, you’ve likely already come to realize that holding your money in a bank CD or savings account is never going to net the results you’re seeking. Ultimately, investments need to be weighed on the return they offer you in both the short-term and long-term. Buying real estate is a business for all intensive purposes and should be treated as such.
At InterWest Properties, we take real estate newbies and old pro’s and help them analyze the current trends and shifts in the Portland, OR real estate marketplace. We then help our clients come up with a business plan and investment strategy that will yield the best results.
Questions to Ask About Your Portland Real Estate Investment
Any wise farmer knows that when running a farm, you tend to your animals and crops, first. These are your assets and by caring for them well, they will produce fruits far and beyond their original value. Real estate is no different. Well-tended properties, purchased with the right strategy, become assets that produce fruit for years to come.
To understand if real estate is worth this investment is beyond the scope of this article. However, there are some telltale signs that an investment has potential.
Some key things to note and questions to ask when analyzing a real estate investment in Portland, OR:
Is there demand for the location and property type?
The first rule of real estate investing has always been: Location! Location! Location! They aren’t making any more land and knowing which locations are trending up is vital to making a strong real estate purchase. Our experts at InterWest have their nose to the grindstone and an ear on the grapevine when it comes to Portland real estate trends. That’s much of the value we’re able to offer to our real estate investor clients.
Fixer Upper or Ready to Rent?
All real estate investors want to find that diamond in the rough. We’ve all heard stories of that sweet deal someone picked up from a distressed seller and the massive returns they got by making a few upgrades and flipping the property. And while those deals can come up from time to time, it’s much more practical to understand which upgrades are going to net the greatest return on investment.
At InterWest, our team of experts can guide you into the industry trends that will net the most profit in both cashflow and increase property equity and value. New floors and a backsplash on the sink might be all it takes to take a vacant property that’s been on the market for months and turn it into a hot rental and or quick sale. Market trends and aesthetics shift and our team is always monitoring what repairs and improvements are adding the most value to properties.
Other considerations when looking at investment property in Portland, OR
Will there be positive cashflow on the property from Month 1?
While buy and hold is one strategy that works for the right kinds of properties, there are many intricacies within that strategy. Some investors don’t mind a property that merely breaks even every month, so long as the overall property value holds or appreciates each year.
Other investors prefer to structure their rental portfolio so they are receiving monthly cashflow from every single property, meaning they are renting properties for more than they pay in monthly expenses and mortgage payments. There’s no right or wrong strategy, so long as it fits within your overall business plan. Our team at InterWest will make sure that investment plan is solid and make sure all decisions flow through that overarching vision.
Are you in a position to hold a property even if it does become vacant?
Finally, it’s important to know that no matter how hot a potential real estate market is, there’s always the possibility that a property might be vacant for any number or months at a time. At InterWest, we use our intimate knowledge of the Portland rental market to prevent this from happening as much as possible.
We want to keep your rental properties occupied and at capacity as often as we are able. And even though we’ve continually showcased success in helping real estate investors achieve their goals, it’s important to know what the potential setbacks could be so that you design your strategy to account for them.
Are Your Portland, OR Rental Properties Vulnerable?
Our knowledgeable team of real estate experts are ready to not only show you the potential of the market but also give you practical advice about how you should handle any market lulls. The investors who are hurt in a down market are the ones who don’t have a contingency plan. Let us look at your real estate portfolio and highlight areas where you might be vulnerable so that you can hedge your bets and make sure you’re good to go regardless of market changes.