1000 or so. That's about how many overall residential homes are on the market along the entire 400ish mile long rugged and majestic Oregon Coast at any given moment. I had about four times as many people attend my high school. To say Oregon coastal housing inventory is limited would be an accurate assessment.

As with most areas, the search for a vacation rental is typically dependent on permissibility of usages and the Oregon Coast is no exception when it comes to increasing barriers to entry of areas and properties that will allow nightly rentals.

An example would be Rockaway Beach Oregon, a consistent contender on many top ten lists for top value vacation rental investment cities. Just recently the city (rightly) instituted a CAP on vacation rentals. Homes with active permits can transfer to the new owner but unlicensed properties will need to wait for a license until the currently active rentals drops by roughly 100 licenses. That could take some time, likely many years. On the positive side, there are actively STR licensed and listed properties that could seamlessly transition to new investors.

There are still a few pocket areas of the Oregon Coast that do not have any restrictions, many where active rental permits transfer to the new owners, several where the allocated number of permits has not been reached or where there are very reasonable waitlists for a new permit (often in the single digits.)

Fortunately (for now) usually between 5-10% of active homes listed for sale on the Oregon Coast that are either active vacation rentals or are eligible for a new license. We keep a very accurate spreadsheet of STR eligible properties from Brookings through Astoria to help us and our investor clients navigate and focus their search on listings that are both eligible for a permit and forecast lucratively as a AirBnB rental (our current list hosts roughly 100+ on and off market STR's for sale.)

Due to the very limited housing inventory, properties that meet client(s) search criteria and budget can boil down to a handful of active listings along the entire coast. Licensable vacation rentals are obviously in high demand and offers can become quite competitive, I don't have any formal statistics but I'd say a quality active or eligible vacation rental sells at least twice as fast as a non STR property, the majority within days..

My best advice to investors shopping for a hot or high demand asset class is:

- Prepare & Practice: Get your ducks (GO UO!) in a row. Top local RE broker familiar with STR compliance. Pre-qualification in order. Stick to your vision. Often buyers need to make at least one offer and quickly if they want a quality STR. Know how and who is going to manage, speak with local PM companies (if not self managed) do some due diligence on projections, nightly rates and optimally visit (if haven't already) the areas you're exploring investing in. Read the rules for the city or municipality of your future community. Set your Zillow notifications. Stay in constant contact with your RE Pro and be flexible with your specific area but not with your goals.

- Patience & Tenacity: These qualities might seem contradictory but at least here on the coast, there isn't a lot of STR inventory to choose from. So as noted its best to be locked in and loaded for when the dream property presents itself. Of my last three STR related transactions: 1. Under contract in 48 hours 2. Property came back to market, re-pending within 30 days of listing with back up offer in hand. 3. On market 60+ days, was also initially under contract. Pending at 10% below original asking price. If an eligible STR property hasn't sold right away..there is likely a valuation discrepancy. Seller's with listings that are sitting are increasingly more reasonable to negotiation or concession. If the right property is not actively listed, on average I'd say it takes a maximum of 60-180 days from intro for the ideal prospect to present itself.

Six months is along time to keep up the enthusiasm but real estate investment is about longevity and capitalizing on opportunity, so when coastal STR'S knock, successful STR investors are awake to answer.

Six Areas of Focus:

Florence OR - Proposed regulation but nothing formal yet..within city limits properties are eligible for STR usages with a business license to remit local occupancy taxes.

Waldport OR - Investors can obtain a STR license within city limits.

Brookings OR - There is a specific zoning code that investors can reliably obtain a permit with the city. Investors do need to go in front of a board before issuance, my professional opinion is that the window to obtain a permit within the city is narrowing rapidly..

Lincoln City OR - Multiple jurisdictions depending on property location but if you know where to look there are specific STR communities and zoning that allow STR usages.

Arch Cape/Cannon Beach/Manzanita OR - Very limited eligible inventory and most of the areas can obtain a permit but have usage restrictions. For example one occupancy per 7 or 14 days. Generally not optimal for maximum ROI but for offsetting second home costs.

Bandon OR - Home of world famous Bandon Dunes. STR's within city limits are extremely rare due to zoning and density requirements, just outside city limits with the county is feasible but can take six months to process the license application.

Everywhere in between: We've sold STR eligible properties in nearly every coastal OR city & county. Area rules are very nuanced and county properties are often more accommodating or flexible on permissions. If a specific property has been identified, contact the planning department the property is located in and speak with a representative regarding vacation rental usages, when possible obtain the feedback in writing. Many city or county websites have vacation rental sections on their websites but always call to verify accuracy.

How long did it take for you to identify your first STR investment or did you convert an existing rental or unit?

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