Thinking About First Rental Purchase

[Jesse Brons]

Hello! My name is Jesse, I’m new to everything real estate, been listening to the podcast for a few months now and I’ve found a rental property I’m interested in. It is a duplex for sale at $185,000 , two 700 sq ft units, they currently rent for $650 and $850. Home built in 1915, has carport/storage outside for one tenant. 

My fiancé and I are looking for some cash flow. How do I move forward and what should I be paying attention to? Also I have a VA loan to use. Not sure if this place qualifies for it though.

Thanks!

[Jacob Wathen]

Hello @Jesse Brons. Notice that none of the people that commented have been from Oregon or even a similar market to Oregon. Like you said it is very difficult finding a duplex for under 200K, let alone 100K. 

Of course Portland is much more expensive than Grants Pass but it will still be very difficult finding properties that meet the 1% rule in your area. If there are ones that meet the rule they will likely be purchased for 5-15% over asking causing it to no longer meet the rule. 

There are other major benefits to investing in Oregon though. For instance, appreciation. We are still the least expensive place to live on the West Coast and therefore people from WA and CA have been flocking to Portland, Eugene, Medford, and Grants Pass. Also no matter what people say it is better to invest locally so you can keep an eye on your investment. 

I would be happy to talk to you further. I strongly suggest reaching out to other investors in Grants Pass/Medford areas to see what their numbers are.