Looking to find funding for my deals ! Eugene, Oregon

[Christopher Hume]

Hi I am looking to invest into real estate and I believe Eugene, Oregon is a market that has lots of potential to make good money. Taxes aren't too bad and property value is very high rent is high and the place is absolutely beautiful ! I am looking to either whole sale propertys if there is an opportunity to make good ROI, or depending on the best strategy for the specific property possibly hold and use the projected rental value as passive income. Also there is the Air B n B rental value as well Wich can be even higher in this area I have seen regular houses priced at close to 5 thousand a month on Air B n B and those propertys were booked out sometimes 6 months so lots of potential in my eyes. So if you feel like you are interested in tapping into this market with me then please contact me, my name is Christopher and I look forward to making money with you !

[Chris Watkins]

Hi Christopher, welcome to the forums. I am an investor in both long- and short-term rentals in Eugene as well as an agency lender. I agree with much of your assessment of Eugene. It has a lot of upside for investors, though it has some quirks and isn't for everyone. What type of funding are you looking for? Are you looking for private investment to help fund your purchases?

[AJ Wong]

Quote from @Christopher Hume:

Hi I am looking to invest into real estate and I believe Eugene, Oregon is a market that has lots of potential to make good money. Taxes aren't too bad and property value is very high rent is high and the place is absolutely beautiful ! I am looking to either whole sale propertys if there is an opportunity to make good ROI, or depending on the best strategy for the specific property possibly hold and use the projected rental value as passive income. Also there is the Air B n B rental value as well Wich can be even higher in this area I have seen regular houses priced at close to 5 thousand a month on Air B n B and those propertys were booked out sometimes 6 months so lots of potential in my eyes. So if you feel like you are interested in tapping into this market with me then please contact me, my name is Christopher and I look forward to making money with you !

Hi Christopher you are on to something! In my opinion Eugene has a similar trajectory to Boulder. I've helped a lot of out of state investors acquire starter homes and duplexes in the area. Families get a lot of home for the value, ADU's permissible outright and STR's do very well and are welcomed due to the University and Stadium events like the US Track & Field. Downtown is still small but has grown a lot in the past 4-5 years. Let me know if I can be of any help.

[Dan Gandee]

Yo Christopher! I've got a lot of perspective as both an investor in this market and investment broker working with dozens of clients acquiring multifamily, performing flips, running STR's, and performing BRRRR's. I'd love to jump on a call and see how I could help answer your questions you may have. Text me and we can begin dialogue at your leisure- 458.209.0163

Recent survey just released by a major moving company ranked Eugene, OR in the top 20 places people relocate in the entire US. BUT...There comes a bunch of items most investors need to navigate including Phase I, II, and III rental protections, State-Wide rental restrictions, seasonality of STR performance, and the bottomline job market that fuels rental demand. IMO this area needs more corporations and tech money to really push the rental performance to a "Boulder" market comparison. Without this, it will always lack high paying jobs that will in turn keep prices always growing at moderate appreciation (3%-5% Max YoY).

It was slated to be the "Silicon Shire" a few years back, but that has definitely choked out a bit with the tech industry layoffs and economic restrictions. STILL LOTS OF GROWTH, but not exactly the KPI's you want for a Boulder Like economy. From a landscape perspective we have it all (Ocean, Mountains, Wineries, Nightlife, Farm, Fishing) but we need more corporate infusion to really take this city to the next level. Can't lie though - A Great place to live, work, and play! 

From a performance arena we operate in the following metrics:

Cap Rates (3.9-4.3 - A Class Assets, 4.4-5.5 - B Class Assets, 5.5+ Deferred Maintance, Value Add Needs, Repositioning A Must) 

Gross Rent Multipliers (10.0-12.5 Most Deferred CapX, 12.5-15.0 For Most Retail Rentals, 15-17+ for New Construction or A-Class)

1% Rule (0.35-0.45 A/B Assets, 0.45-0.65 Most Retail Rentals, 0.65+ For Heavy Deferred Maintenance But Good Market Rents)

Cash on Cash Return (Always depends on financing vs. cash acquisition, type of asset (STR vs. LTR)

Price Per Unit ($150K-$165K for C+/B- Asset, $165K-$180K for B/A- Asset, $180K< A Class Asset, New Construction, Or 2-4 Unit In General)

Hope this helps anyone as I'm analyzing about 12-15 rentals per week both for my investment firm and brokerage. 

[Josiah Kellerman]

I would encourage you to look in Springfield as well. Lower purchase prices and lower taxes but with the same rents or very close. Springfield is growing and homes are appreciating as well. Eugene/Springfield isn't exactly a Cash Flow market in my opinion. Even if you go the STR route after all the expenses and work you put into running it is either not passive or not high on cash flow or BOTH! The investments my wife and I have we pretty much break even or have a tiny bit of cash flow. Which is fine for us. Long-term appreciation is what we are looking for and rents in 5+ years will be a little bit higher, so our cash flow will be as well.

Just another perspective if you plan on holding any properties. 

[Christopher Hume]

Yes private funding I believe is the way I should go and I should probably me tion this is my first time buying a home as well. So I want to find something that can double as a living situation and also a rental to generate some passive income. This is going to be the start of many more to come as far as rentals. I myt diversify my investments as well to do other kinds of deals as well but at first I want to mainly focus on getting some passive income so that I have time to learn more about real estate and network making connections in the real estate world.  I just want to be able to focus on what's important in life and not have to worry about working and paying bills all the time. I want to actually live my life.