On today’s blog, we would like to share our thoughts on what areas of our town (Portland, Oregon) we see as offering the best investment opportunity relative to the residential rental market. People considering an investment property often want to buy in the neighborhoods that offer the best opportunity for rental income, and we have identified a few specific spots in the Portland metro area that can really make a good rental property investment.
If you are interested in buying a condo, you should be looking in the Pearl district, the south waterfront area and the Arts district. Many of our new owners and clients will ask us what types of condos to look for in those areas.
Here are our recommendations when shopping for a condo:
- look for a condo in a development that is well maintained (look at both exterior and interior)
- the building should have a solid and active condo association (regular meetings)
- association as a strong reserve balance in addition to monthly operating & maintenance costs
- ask about plans for the future upgrades
- also ask if they have a updated Reserve Study on file to guide them in scheduled maintenance
You’ll be paying over a dollar per square foot in these very desirable neighborhoods, so you want to make sure you’ll be able to bring in a good amount of rent.
Another area of town that is good for condos is in the NW 23rd or Alphabet District. You can find great condos as well as duplexes and multi-family units in those areas. We have noticed that people are buying in inner NE Portland, including neighborhoods such as Alameda, Irvington and Concordia, so you’ll want to take a look at properties in those neighborhoods.
The Alberta Arts district is another great place to look for investment property. Anything you find off Hawthorne and Belmont will provide good rental rates. In those areas, two or three bedroom homes have been renting for between $1,500 and $1,900 per month (as of this writing in early 2014). Those homes are also not staying on the market very long. Applications right now are only backing up on those properties, so it’s a good, reliable rental market.
Another area that’s great for rental homes is the Sellwood or Milwaukee area. You’ll find bungalow style homes that have two or three bedrooms. In that area, you also have great access to neighborhoods with cafés and antique shops. People like living where they can walk and bike to places.
If you have any questions about the best neighborhoods to buy in, current rental rates or what you should look for when buying investment property, contact us at Illume Property Management.