Investing in the Oregon market

[Eric Lee]

Hi all,
I'm looking to acquire my first rental property and am strongly leaning towards a short-term rental while doing a MTR for off-peak seasons. I'm located in the Salem area and while I've looked at properties locally, I just don't think my area has the same draw as Portland or Eugene. I'm starting to look closer in Portland and Eugene and think Eugene might be particularly attractive because of the large university. I would love to learn from and network with those who are already active in this market!

[Savannah Holzer]

Hey Eric - welcome to BP! Both MTR and STR strategies are great. Eugene could be a great choice for STRs with the university driving consistent demand with college kids + family, and Portland offers year-round potential with its already strong market for both MTR and STR.

[Jay Hinrichs]

Corvallis ???  

[Mike Grudzien]

Eric,
If you are thinking of Oregon, especially Eugene, you need to talk to Dan Gandee.
(Dan on BiggerPockets:  https://www.biggerpockets.com/users/dang297#0)
Hands down, one of the best, hard working, knowledgeable real estate brokers I've ever met.  He has made me a ton of money as an investor.  I don't make a real estate move without him.  Period.
Mike

[Chris Watkins]

Quote from @Eric Lee:

Hi all,
I'm looking to acquire my first rental property and am strongly leaning towards a short-term rental while doing a MTR for off-peak seasons. I'm located in the Salem area and while I've looked at properties locally, I just don't think my area has the same draw as Portland or Eugene. I'm starting to look closer in Portland and Eugene and think Eugene might be particularly attractive because of the large university. I would love to learn from and network with those who are already active in this market!

Hi Eric, welcome to BP. I am in Eugene and have one STR here in town and know several others who do as well. I'd be happy to share my experiences and can also say that Mike and Dan both have good insights as well. Shoot me a DM and I'm happy to chat.

Chris

[Chris Watkins]

Quote from @Chris Watkins:

Quote from @Eric Lee:

Hi all,
I'm looking to acquire my first rental property and am strongly leaning towards a short-term rental while doing a MTR for off-peak seasons. I'm located in the Salem area and while I've looked at properties locally, I just don't think my area has the same draw as Portland or Eugene. I'm starting to look closer in Portland and Eugene and think Eugene might be particularly attractive because of the large university. I would love to learn from and network with those who are already active in this market!

Hi Eric, welcome to BP. I am in Eugene and have one STR here in town and know several others who do as well. I'd be happy to share my experiences and can also say that Mike and Dan both have good insights as well. Shoot me a DM and I'm happy to chat.

Chris

Also, Portland (in the city) has restricted STR licenses to owner-occupied properties, so that won't work if you're living in Salem.

[Dan Gandee]

Happy to share my insights in the Eugene area and answer any questions you have. Not all agents are created equal when it comes to investments. This is primarily all we specialize in.

[Eric Lee]

Thank you guys, looks like there's a great group of people on here that I can network with to get more familiar with investing in the area!

[Eric Lee]

Quote from @Chris Watkins:

Quote from @Chris Watkins:

Quote from @Eric Lee:

Hi all,
I'm looking to acquire my first rental property and am strongly leaning towards a short-term rental while doing a MTR for off-peak seasons. I'm located in the Salem area and while I've looked at properties locally, I just don't think my area has the same draw as Portland or Eugene. I'm starting to look closer in Portland and Eugene and think Eugene might be particularly attractive because of the large university. I would love to learn from and network with those who are already active in this market!

Hi Eric, welcome to BP. I am in Eugene and have one STR here in town and know several others who do as well. I'd be happy to share my experiences and can also say that Mike and Dan both have good insights as well. Shoot me a DM and I'm happy to chat.

Chris

Also, Portland (in the city) has restricted STR licenses to owner-occupied properties, so that won't work if you're living in Salem.

Wow good to know, thanks Chris! 

[Eric Lee]

Quote from @Jay Hinrichs:

Corvallis ???  

I did some work in Corvallis and thought about investing in that area as well...just seems like Eugene would have a more robust market. But I may just need to do some more research into the potential opportunities that Corvallis may provide!

[Jay Hinrichs]

Quote from @Eric Lee:

Quote from @Jay Hinrichs:

Corvallis ???  

I did some work in Corvallis and thought about investing in that area as well...just seems like Eugene would have a more robust market. But I may just need to do some more research into the potential opportunities that Corvallis may provide!

I think you will find Corvallis  to be more expensive than Eugene but it is for a reason.

[River Sava]

Hey Eric- 

Congrats on taking the leap into rental investing. Eugene sounds like a great option with the university draw, and Portland has some solid opportunities too especially if you're leanign towards the MTR/STR route. Happy to connect and good luck!

[Lawrence Potts]

Quote from @Eric Lee:

Quote from @Jay Hinrichs:

Corvallis ???  

I did some work in Corvallis and thought about investing in that area as well...just seems like Eugene would have a more robust market. But I may just need to do some more research into the potential opportunities that Corvallis may provide!

Like @Jay Hinrichs mentioned, it’s more expensive, but for reasons. Corvallis is notoriously “anti-building”, a more hyper-inflated market inside of its own bubble compared to the rest of the willamette valley. OSU enrollment continues to grow and it ranks in the top 10 in the nation for highest enrollment to lack of housing ratio in the nation. No surprise, this, along with job growth (HP is a large employer) forces prices to stay high as demand creeps up too. If you can find the right deal at the right price, there’s a lot of equity and appreciation to capitalize on. But the cost to play that game is higher than the likes of Eugene or Roseburg or Salem. But the above statement is easily used generically for any market. 

We had an investment group willing to come in and zero-lot line a dilapidated apartment complex in Corvallis and give the tenants the opportunity to buy to help solve our affordability crisis here, but nonetheless, the city forced their hand by needing a half-street development after changing zoning that killed the deal. It’s an uphill battle with the city; many investors can look at this and see that this only forces appreciation and get in even though the cost to play is high.

Hope that makes sense. And not to drag the city through the mud. Just the reality of our market here and us trying to find ways to solve our serious housing problems.

[Jay Hinrichs]

Quote from @Lawrence Potts:

Quote from @Eric Lee:

Quote from @Jay Hinrichs:

Corvallis ???  

I did some work in Corvallis and thought about investing in that area as well...just seems like Eugene would have a more robust market. But I may just need to do some more research into the potential opportunities that Corvallis may provide!

Like @Jay Hinrichs mentioned, it’s more expensive, but for reasons. Corvallis is notoriously “anti-building”, a more hyper-inflated market inside of its own bubble compared to the rest of the willamette valley. OSU enrollment continues to grow and it ranks in the top 10 in the nation for highest enrollment to lack of housing ratio in the nation. No surprise, this, along with job growth (HP is a large employer) forces prices to stay high as demand creeps up too. If you can find the right deal at the right price, there’s a lot of equity and appreciation to capitalize on. But the cost to play that game is higher than the likes of Eugene or Roseburg or Salem. But the above statement is easily used generically for any market. 

We had an investment group willing to come in and zero-lot line a dilapidated apartment complex in Corvallis and give the tenants the opportunity to buy to help solve our affordability crisis here, but nonetheless, the city forced their hand by needing a half-street development after changing zoning that killed the deal. It’s an uphill battle with the city; many investors can look at this and see that this only forces appreciation and get in even though the cost to play is high.

Hope that makes sense. And not to drag the city through the mud. Just the reality of our market here and us trying to find ways to solve our serious housing problems.

ya I got totally home runned on a 40 lot development I was doing just north of town was in the county but the polictics are the same.  neighbors fought us because it was a Timber stand .. I agreed to leave a buffer around the entire development but we needed the allowed density.. At the planning commish meeting they said we will approve it but you need to cut density by 10 lots.. My seller would not budge.. So instead of a really cool development with a ton of mature tree's left I lost 80k and could not close.. The Dr. who owned then proceeded to CLEAR CUT it so neighbors got Zero trees then he waited a few years and he platted it and sold it.. he was not happy with the neighbors.