Investing on Oregon coast

[Rebecca Pike]

Hi, I'm new to REI (since 2/2020). I'm looking into investing in Lincoln City. Are there any wholesalers servicing this area? Are there any investors investing here? Just want to connect. Thanks. (I'm located in Oregon City.)

[Taj Richardson]

I'm a Lincoln City based Realtor w/ a primary focus on vacation rentals for buyers and sellers. @Justin Frank is correct, the Oregon Coast is a bit of a weird market for REI... The best thing the Oregon Coast has going for it from an investment perspective is fantastic appreciation over time with tons up upside... but there is really no cash flow for the Oregon Coast for short term or long term rentals.

With short term rentals the seasonality suppresses the gross rental revenue to get great cash flow unless you come in with 50%+ down, with that kind of down I can find vacation rentals starting in the $350k range that will show decent cash flow. For long term rentals the market it just too expense... no such thing as a 1% rule for long term rentals over here, everything is <1%, even with a lack of long term rental options.

I don't know of any active wholesalers over here (if there are I'd love to connect), not enough opportunity to find the deals most likely. There are plenty of dilapidated non-occupied homes rarely/never used over here that someone interested in BRRRR could probably find some opportunities with. Likely it would take a long term mailing campaign to score one.

The large majority of people I end up finding vacation rentals for are happy to break even with about 30% down. The intrinsic value usually plays a big part in their final decision more so than pure investment decisions. Over time appreciation along with debt paydown will pay dividends, but for someone just getting started with real estate investing there are much better markets in the country to get started for both long term rental and short term rental investing.

If a cash flowing short term rental is the top goal do a search engine search for the top 25 vacation rental markets, you will find several articles with some great insights.