New Investor - Portland, Oregon

[Tyler Baltus]

Hey everyone!

I'm Tyler from Portland, Oregon. I'm 18 years old, and just recently graduated high school. During this pandemic, I have done extensive research on real estate investing and have gained a great interest in growing passive income streams. As you may know, the cost of real estate in many PNW markets is very high. However, it would be ideal to make my first investment within reasonable driving distance of me.

It would be great to hear from any investors in my area to get a better feel of the market, as well as anyone who has made their first investment out of state! Obviously I have a ton to learn, but I'm excited to start as soon as possible and it's great to be a part of the BiggerPockets community.

- Tyler Baltus

[Lane Kawaoka]

Portland, San Francisco, Hawaii, Los Angeles, Seattle, Boston are examples of primary markets which are NOT ideal for cashflow investing.

It could appreciate but I consider that gambling. Sophisticated investors invest on cashflow where the rents exceed the mortgage plus expenses (and enough money to pay for professional property manage to do our dirty work).

Sophisticated investors look at the Rent-to-Value Ratio and look for at least 1% or more to be able to cashflow after expenses. You find the Rent-to-Value Ratio by taking the monthly rent dividing by the purchase price. For example a $100,000 home that rents for 1,000 a month would have a Rent-to-Value Ratio of 1%. Most people I work with live in primary markets (as opposed to Birmingham, Atlanta, Indianapolis, Kansas City, Memphis, Little Rock, Jacksonville, Ohio, or other secondary or tertiary markets) where the Rent-to-Value Ratios are under 1%.