If you’re looking to buy rental property, there are a number of excellent reasons to invest in single family homes in Portland. These types of properties provide you with a better opportunity to sell the home when you’re ready, especially if the market is tight. Single family homes also achieve more appreciation when it comes to value. Cash flow benefits abound as well – higher rents are usually paid for single family homes.
Finding a Good Price
When you’re looking for a single family investment home, make sure you’re paying the right price. When you overpay for a property, you’re compromising your investment potential. One of the major reasons that people invest in rental property is to earn some cash flow by collecting rent. You want to crunch the numbers before you buy and make sure the rent you earn will be profitable. Your goal in the Portland market should be to buy a property that you can rent for between $1,500 and $1,800 per month. This will tell you that you’re investing in an outstanding property.
Types of Homes
A single family home with three bedrooms and two or two and a half bathrooms will always rent well. Look for something that has about 1,800 square feet. A good investment property will have strong bones, attractive landscaping and an updated kitchen. Make sure you’re buying in a good neighborhood that high quality tenants will want to live in. These are the things Portland renters care about.
If you follow the news, you know that Warren Buffet recently said that the housing market has bottomed out and it’s a good time to invest again. In Portland, the housing prices are trending up and the supply in available homes for sale has dropped significantly. This is excellent news for investors who are eager to take advantage of the positive momentum in the market. It’s a great time to invest because you’ll start earning rental income immediately and cash flow won’t be hard to find.
Fifteen years ago, the ratio for price to annual rent was around 20:1 or 22:1. Recent statistics bring the ratio to about 16:1. That’s good news for the market. It’s also a good time to buy because interest rates are still low. Prices are also low, even while they continue to climb higher. Single family homes are always going to be in high demand among the most qualified renters.
Contact Moore Property Management Company if you have any questions about the value of investing in single family homes in the Portland area.