All Forum Posts by: JJ P.

Yeah. We're new to the area, so I really couldn't say. Plus, we're LTR people only. But it's very tempting to wade into the STR market. We watch the neighboring beach STRs and just notice who's there. We can see the cars, who's checking in, who's walking to the beach with coffee mugs, etc.

So, it's not scientific, but here's what we see:   The smallest one rents for about $160-175 a night, and sleeps 6 or 8 in a cozy manner (loft bedroom, not big).   It's not fancy, but they keep the kitchen well stocked and it's clean.  The decor isn't stunning, but they have the formula down pat.    It's hardly every vacant.   I'd almost venture to say never vacant. The owner is Out of state, and the $$$ must be pouring in. The bigger, luxury ones that we can see regularly seem to be rented about 2/3 of the time. I think many switch to winter long term rentals from Oct to May, and then go back to STR. I can tell you more next spring, when we've seen a full cycle.

We have recently invested in LTR in the area.   Demand is high.  

The STR in Bandon have a strong appeal for the golfers and beachgoers. I would imagine that, due to the airport, you'd get lots of inquiries whether in Coos or North Bend. We see the golfers on every flight. They are always smiling. The big golfing event (Masters?) is being held at Bandon Dunes this summer, so be sure to adjust your rates accordingly for that week. It's already sold out for the STR in the area.

I'd tell him that his unit is not currently slated for renovations, because you don't ever renovate occupied units, but if he'd like, he can move next door into the renovated unit and the rent is xxx.  

Having a license is great for saving on commissions and accessing the MLS, but, as noted above, you will pay quite a few fees to be able to have that access, and a large portion of your commission (often 50%) to the brokerage that has your license. Also, you've bypassed one of your better resources if you're not working with a good realtor.

I may be reading between the lines, but if realtors (plural) are dropping you as a client, they must have some yellow and red lights flashing.  Something indicates to them that you are unlikely to conclude a purchase, and they are wasting their (unpaid until escrow closing) time.   Usually the biggest red light is lack of financing.  Is your financing lined up?   The next biggest red or yellow flag  when working with a new investor would be a client who either indicates that they are using other realtors or one that simply seems to have no real plan or direction.  

If you have your financing in order and have some pretty solid ideas about the type of property that would work for your new investment, then contact an Oregon realtor here on BP.   They're investor friendly and here for a reason.  In fact, as I'm typing this out, I'm wondering why you wouldn't do that in the first place when you were dropped by off the shelf realtors. 

I'll be the contrarian here... If I were buying my very first investment property and looking to become a RE investor long term as a wealth building strategy, there's no way I'd buy in an unknown area and try to "build a team" to run my business. 

 Instead, I'd focus on where the value can be found in my area--say, up to a 3 hour drive, maximum, with closer being better.  Then I'd focus on finding a good realtor and a good lender to help me learn the area and finance the purchase, respectively.   Then I'd read, research, drive the streets and look online until I felt like I somewhat had a handle on my areas of interest.   Get out there and look around.   See properties and do drive bys until you feel confident that you've got an idea of how an area works, and if it works for you.  Surely there's something within a morning's drive that will suit you, without jumping to unknown lands and people to outsource your future to.  For the time being, you only need one good purchase.   I'll bet there are few dozen right now, within a 3 hour drive of wherever you are sitting, that would be great for you.  You just need to know one when you see it.  

 There's no magic wand to making a good, common sense investment and you might as well get your boots on the ground and get going.    

@Jay Hinrichs, I just looked on Zillow for Hood River listings.  It seems pricey and nearly impossible to get a 1% return.   Nothing is standing out to me, perhaps I'm not looking in the right area.  

Is 1008 12th St, Hood River, a typical price point? It's priced at $325K for less than 1000 sq ft., but must be high because it's been on the market forever. It would get a complete overhaul if it were in our portfolio. It's a single family in a commercial zone. At least the ad mentions STR and commercial options, so multiple strategies are possible.

This triplex in Washington would be a real contender if I were shopping the area:

Although the realtor mentions that the "area is safe," which implies that nearby might not be so safe...

In California, the lease will automatically go to a month to month unless you change or update it.   My tactic for keeping good tenants is just to let them know I appreciate them and would like them to stay.   If they're really good, I wait a while before a small rent increase (maybe until the following January or June 1), or just give a tiny bump up at renewal ($20-25).  During these Covid times with eviction moratoriums and job losses, good tenants are worth their weight in gold. 

@Jeff 

@Jeff S., we did a 1031 from San Diego into the Oregon Coast, where our dollars went much further.  I'm watching the BP discussions on Oregon with intense interest.   

Just since we purchased (roughly 6 months ago), we've watched the inventory shrink and prices adjust slightly upwards.  It's not so much that the prices soared, but rather that the low end of the market has nearly disappeared.  Inventory is tight.    A lot of rentals have transitioned to STRs, and there is high demand for long term leases.  Incomes are fairly low, so rents are also, but we're getting our 1% currently. 

We like small SFR for our portfolio of LTRs, so the ones that would interest us are hard to come by. Having cash gave us an edge on one fixer upper. You'll have the same advantage- a cash offer and quick close always gets the sellers attention.

Like you, we're opting for the steady but lower return of yearly, stable leases, vs the vacation rental market which offers higher return but more hands on, and we'd have to outsource the management.  Peace of mind is more important to us now than wringing every dollar out of our investments.   If we were in the stock market, this would be the time we switch from high volatility  and rebalance the portfolio to nice, steady bonds. 

I think if you are nearby and self managing, renting to college students is a great strategy.   Generally the parents guarantee the rent, so rent payment is not the issue.   They are, however, not accustomed to running a household and are likely to be very gleeful about being on their own, unsupervised, and far from parental eyes.   In other words, they are hard on homes.  They will forget to turn off or on landscaping water.  They'll use your nice countertops as cutting boards.  They may even drive through with a motorcycle, as someone mentioned above.   Even if they are very responsible, they're still kids.  They have minimal or no "fix it skills" and are in the middle of developing an adults common sense.  

I think that no matter how much a place costs on a per night basis, people want their vacation rental to be nice.  They are, after all, on vacation.  

 What ever your price point is, make the surroundings clean, tidy and inviting. Make sure it smells good in there.  Pick nice colors for the pillows, rugs, bedspreads, decor items and art work so that the room is not boring.   Add a little pizazz where you can.  Don't let the potted plants die.  Replace worn out pillows, slip covers, dishtowels, etc.   Shop at Ross or Home Goods and there are plenty of great, hip things at bargain prices.  The prices are low enough to be able to spend again if you need to replace things in a few years.  

 Some rental rooms can be dire.   Don't be that guy.