Making the right property investment in Portland is an essential part of your financial strategy. If you want to be a successful landlord who has a constant stream of good tenants, you need to make sure you buy an investment in the right location. Location will always be your most important consideration. When you find the right location, you can decide whether you’d rather rent out a single family home, a multi-family plex or a condominium. There are a number of benefits to choosing a plex or a condo.
Duplex and Triplex
Many investors make the decision to buy a duplex so they can live in one unit and then rent out the other unit. This is an excellent idea and it’s a good reason why duplexes make great investment opportunities. The rent you collect from your tenants will likely cover the cost of your mortgage, so your own living expenses will be low and your property will appreciate in value. However, you have to make sure you’re willing to live right next door to your tenants. When you’re screening, you’ll have to make sure that everyone is going to be comfortable as neighbors.
Renting out both units in the duplex is another great investment idea, and you can also take a look at triplex properties that will allow you to collect rent from three different units. This can mean more income for you, but it also means more tenants and more potential problems. You’ll have to divide up the costs of utilities for each tenant and there will be a number of appliances to maintain. You’ll also have to figure out how to handle the landscaping and lawn care.
To maximize the value of a duplex or a triplex, find a property with a floor plan that has details you won’t find elsewhere. Make your rental different from the others. This will allow you to find a higher quality tenant now and a large pool of potential buyers in the long term.
Condos are great investment properties because they often cost less than single family homes. There can be challenges to cash flow, however, because you’ll probably have to cover the homeowner’s association fee that most condo boards charge. Include that in your rent when you’re putting the property on the market. When you’re shopping for condo properties, take a close look at the HOA bylaws and make sure you understand the rules and regulations. Take some time to read through the meeting minutes for the previous year so you know what kind of maintenance issues to expect and you have a good idea about the type of investment you’re making.
Buy a condo in an association with a strong reserve. Make sure there are no lawsuits pending, issues with the builders or other potential problems that could harm your investment. You’ll want to make sure tenants are permitted and treated fairly and you want to be able to provide the necessary services to your tenants.
Condos and plexes are unique properties that make good investments. Contact Moore Property Management for more information on how to invest in these properties.