People who buy rental properties have all sorts of investment goals. You might want to earn as much appreciation as possible before you sell the property. Or maybe you just want to earn some rental income in the short term. One of your goals, regardless of long term strategy, should be to maximize your Portland rental value. When you increase the value of your rental home, all of your other investment goals will have an easier time falling into place. There are a few specific things that will impact your rental value.
Property Age and Condition
The age of a home will have a major impact on its value and your ability to rent it out. You may want to look for newer homes, specifically those that were built after 1978. There are a number of laws, disclosures and regulations concerning lead paint on homes that were constructed prior to 1978, and if you need to have work done on your home it’s going to be more expensive because you must hire a contractor who is certified in lead paint repairs.
Investors looking for great values and good rental potential will want to stick with city properties that are close-in. Consider the Pearl District as well as Northeast Portland and Southeast Portland. Property appreciation is especially great in North Portland, but you might have a harder time finding tenants in those neighborhoods. The area is commercial and industrial and most communities are home to warehouses, where renters won’t want to live. Check out Goose Hollow in Southwest Portland as well as Multnomah Village. In Southeast, you can find properties with great rental value in Irvington and Laurelhurst. You’ll get high rental prices to offset the higher price you pay to purchase the home.
Older properties in Southeast Brooklyn also come with outstanding rental value. Have a good inspection before you buy and make sure the structure is sound and the house has good bones. Look for up to date roofing and plumbing so you won’t have outrageous repair costs once you have a tenant in place. Avoid the waterfront when looking for investment opportunities. There are a lot of condo properties, but those were built quickly and you don’t know if there are builder defects and construction issues.
Single Family Homes
Investment properties with the greatest potential for high rental values are single family residences. A home with three bedrooms and two bathrooms and around 1,800 square feet will rent for at least $1,400 a month and maybe as much as $1,800. Most of the tenants looking at properties have a budget of between $1,600 and $1,650. Pay attention to the property’s kitchen. If it’s a good space for people to cook and families to gather, you’re going to get a lot of rental value from that property.
Contact Moore Property Management if you need help locating a good rental property or you want to know what kind of rental value you can expect from the investment homes on your short list.