If you’re an investor or a potential rental property owner, you may be wondering what will bring you the best income in Portland, OR. The best type of property to buy depends on your investment goals and what you’re hoping to accomplish. There are a number of things to consider.
Single Family vs. Multi-Family
Choosing between a single family home and a multi-family building such as a duplex or a property with three or four units depends on whether cash flow or long term returns are more important to you. A single family residence will appreciate more over the long term, but you’re only able to collect rent from that one property. On the other hand, a multi-family property will allow you to collect more rent in the short term, but it will probably not appreciate in value as much.
Location, Location, Location
Regardless of whether you decide to buy a single family residence or a multi-family building, location is essential when you’re shopping for investment property. Talk to a professional real estate company that also performs property management services. You want to know what you’ll be able to charge for rent and what kinds of tenants you will attract. It’s important to understand your rental potential as well as the return you can expect on your investment before you buy.
In the Portland market, you’ll be able to choose between new construction and an older home. Most of the homes in new developments are on smaller lots. However, they have new appliances and you won’t have to budget for major repairs right away. A new home usually comes with the benefit of a one year warranty, which will cover any problems that you have early in your investment. Older properties might require more maintenance, but they are often in more desirable neighborhoods where you’ll be able to get more rental income. There is going to be more space with an older home as well, which is attractive to tenants who want yards for children and pets.
There are a number of options for great investment property in Portland. Whether you want a single family home or a duplex, an older property or new construction – there are always benefits and excellent potential for rental income. Contact Jim McNeeley Real Estate and Property Management for help in planning your investment strategy.