Hello,
As you mentioned, BRRRR requires a solid understanding of both buy and hold and flipping strategies, and it can be challenging to execute successfully without experience. Additionally, with current interest rates, the margin for error is indeed thin, which adds another layer of risk for new investors.
You asked if there is an alternative strategy that can help you get started in the Oregon market, and I would suggest looking into turnkey rental properties. This strategy involves purchasing a property that has already been renovated and is ready to rent out. You can typically find turnkey properties in up-and-coming areas that offer good cash flow and long-term appreciation potential. The benefit of this approach is that it allows you to get into real estate investing without having to deal with the headaches and expenses of rehabbing a property yourself.
Another option you might consider is partnering with an experienced investor who can help guide you through the process and provide support and advice.
I live in salem and plan on buying multi-families here because of the research trends and its close to my day job.
Heres a quote from my AI Chat GPT report about the salem market
"Salem, Oregon is the capital city of the state and is home to a diverse range of industries, including healthcare, government, education, and agriculture. The real estate market in Salem has been experiencing growth over the past few years, with new developments and investments being made in various areas of the city. In this report, we will examine the market trends in Salem's real estate industry, focusing on the past five years.
Market Trends:
The real estate market in Salem has been experiencing growth over the past few years, with increasing demand for both residential and commercial properties. According to Zillow, the median home value in Salem is $356,000, an increase of 18.6% over the past year. The median rent price in Salem is $1,765, which is higher than the national average of $1,650. The market has been trending towards a seller's market due to a shortage of inventory, which has led to higher pricing and a lower percentage of listings receiving multiple offers.
Homelessness:
Salem, like many cities in the US, is grappling with homelessness. According to a point-in-time count conducted in 2021, there were 1,673 individuals experiencing homelessness in Salem. This is an increase from the previous year's count of 1,562. The city has been working to address the issue through a range of initiatives, including the development of more affordable housing units and the expansion of services for homeless individuals.
Key Industries and Major Players:
Salem's economy is diversified, with a range of industries contributing to the city's growth. These industries include healthcare, government, education, and agriculture. The city is home to several major players in the real estate industry, including:
- Coldwell Banker Mountain West Real Estate, Inc.: Coldwell Banker is a leading real estate company in Salem, with several offices throughout the city and a large team of experienced agents.
- John L. Scott Real Estate: John L. Scott is a real estate company that has been serving the Pacific Northwest for over 85 years. They have a team of experienced agents in Salem and offer a wide range of real estate services.
- HomeSmart Realty Group: HomeSmart is a technology-driven real estate company that offers a range of real estate services, including buying, selling, and financing homes.
Growth Rates and Notable Shifts:
Salem's real estate market has been experiencing growth over the past few years, with increasing demand for both residential and commercial properties. According to Zillow, the median home value in Salem has increased by 18.6% over the past year and is expected to increase by another 8.8% over the next year.
One notable shift in Salem's real estate market is the increasing demand for affordable housing units. With the city's growing population and limited inventory, many individuals and families are struggling to find affordable housing options. The city has been working to address this issue through the development of more affordable housing units and the expansion of services for low-income individuals and families.
Rental Rates:
The rental rates in Salem have been increasing steadily over the past few years, with the median rent price being $1,765, which is higher than the national average of $1,650. This increase in rental rates can be attributed to the growing demand for rental properties in the city.
Vacancy Rates:
The vacancy rates in Salem have been relatively low over the past few years, hovering around 5%. This indicates that there is a high demand for rental properties in the city, which is driving up rental rates.
Property Taxes:
Property taxes in Oregon are based on the assessed value of the property, which is determined by the county assessor's office. The property tax rate in Salem is around 1% of the assessed value of the property. For example, if a property is assessed at $300,000, the annual property tax would be around $3,000.
