Bad time to buy in Portland OR?

[Nishant George]

Hi,

I am a relatively new investor from Portland OR (I have one condo bought in 2012 which is doing ok now) looking to pick up a property using conventional lending (20-25% down, 30-year fixed rate mortgage) to buy and hold for cash flow. I have been focusing on single family, condos, town homes, 2-, 3- and 4-plexes. My search and analyses parameters are so: at least $200 cash flow per door after debt service and at least 7% ROI. My search includes these areas: Portland, Beaverton, Hillsboro, Gresham, Newberg and Sherwood. I have only been looking through the MLS and using a realtor.

I've been searching for at least two months now and don't see any thing that is priced so that I hit these parameters. Usually when I find a property that meets those constraints, it is usually something that's built a long time ago -- 1925-60s, and I don't think I'll have the time to devote to repairs and such.

Properties simply seem to be over priced. Nothing new there, I agree, as far as the current Portland market is concerned. But is that it? Is there nothing else I can do to improve my chances of finding better deals in this market? Obviously investors are buying in the area; are they buying just for price appreciation? Do I simply need to look elsewhere until the 'irrational exuberance' subsides? 

[Neal Collins]

Portland is not that kind of market and if you want to be successful you need to up your game and realize your strategy is misaligned and weak. Portland is a great value add play. There are a lot of different ways to do that. Your strategy would work if you started to hunt for properties with a larger number of units, but it doesn't sound like you want to hunt in the commercial world.

Also, I wouldn't advertise that your job and your family are the reasons why you simply can't change your strategy. Start doing some networking with successful investors in the area (or any area for that matter) and you're going to realize that they could all make those same excuses but don't.