Total MFR listings on OR Coast is less than 50 - Opportunity or Restriction?

[AJ Wong]

Well the secret is out on the Oregon Coast and in my five years in the market there has never been more demand for multi family property investments. 

The challenge is that inventory is extremely limited and quality investments with potential are even rare. At present there are roughly 50 active listings from border to border and 5-10% of those have realistic investment potential at their current valuations. 

Rental incomes are typically lower than market rent as Oregon's tenant laws were previously quit fairly restrictive for new owners to raise rents (more on that later) and the quality of housing is generally fair at best. 

My thesis for the market is that the previous generation of property owners had little or no incentive to modernize or significantly upgrade the housing as demand for higher quality units was more limited in the previous 1-2 decades. 

With remote workers, retirees and a general preference for a more abundant lifestyle, those that want to move to the coast are often met with very limited worthwhile options or available lease options in general. 

The challenge for investors (and RE Brokers) is the patience and perseverance to continually assess investment potential and the preparation to execute when the proverbial 'opportunity knocks.' 

The best investment results for myself and clients have been with creating value by essentially updating dwellings to a superior condition to alternatives. Often the rental returns on both short, medium and long term have been worth the capital investment and result in double or triple the historical income dependent on usage. 

Now getting a reliable contractor or team to perform QUALITY work? That's another post entirely..

I think the lack of inventory highlights both a barrier to entry but also a worthwhile mountain to climb. 

If the demographic, climate and economic trends that are forecaster the area continue, long term investors could be rewarded in a huge way. 

Dollar for US dollar I'll bet the long term value and upside of OR Coast investment compared to other Pacific Northwest markets is at least on parity, assuming you can break into the market.

Anyone else having difficulty finding deals for clients or themselves? I think I know the answer..