Investors looking to achieve property appreciation as well as outstanding cash flow are gravitating towards the suburban areas of Portland. Buying property in these small towns outside of the urban center can maximize your Portland rental value, and earn you extra income.
Suburban Portland Neighborhoods
Hawthorne and Sellwood are communities on the eastern edge of Portland that provide excellent investment opportunities. Mt. Tabor is another good area and located just southeast of Portland. These areas are older and the neighborhoods are more established. Keep the age of the home in mind because if the house was built prior to 1978, there will be lead paint concerns. On the western edge of Portland, you can find great investment homes in Burlingame, Portland West Hills and Multnomah Village.
Wilsonville is south of Portland and higher rents are being found in Villebois, which is a new development constructed as a planned community. In North Portland, home prices are rising but the rents are not. The industrial traffic and warehouses located around the neighborhoods make tenants less likely to pay rents that are at the higher end of the market. University Park, near the University of Portland, is one exception where you will always have a good pool of tenants and stable rents.
Outside the City
Lake Oswego and West Linn are beautiful suburbs outside of Portland. The homes in these communities are more expensive, but the extra investment will be worth it for you because you’ll be able to charge higher rents and the properties will appreciate in value. The school district in Lake Oswego is ranked as the best in the state, which will attract a lot of high quality renters and allow you to increase the price.
Further outside of the city, in communities such as Tigard and Sherwood, you want to make sure you’re buying a single family home. These neighborhoods are southwest of Portland and there are not a lot of tenants looking for condos.
Choosing a Property
Whether you want to buy on the edge of the city or out into the suburbs, make sure you find a home that will rent well. Single family residences with three bedrooms and two bathrooms and between 1,800 and 2,000 square feet are your most reliable rentals. Your cash flow will increase because you’ll be getting $1,500 or $1,600 per month in rent. Homes like these that are in good shape and well maintained always rent easily to excellent tenants. You also want a bright, appealing kitchen with good appliances and cabinet space.
Contact Moore Property Management for more information on how to choose an investment property in or around Portland.