US real estate properties are extremely diverse. Investment properties can vary from condos to apartments, and from single family homes to multi family homes. You may decide to invest in a single family home in the vast fields of Iowa, or you may prefer a newer, high rise condo on the beach in Miami. Real estate trends vary from year to year. In 2016, Portland was rated one of the top ten US cities to invest in real estate, and the trend seems to be continuing into 2017.
Location
One of the major deciding factors of real estate is location. Located on the West Coast, Portland is known for its great coffee and its eco friendliness. Portland is very family-friendly, making it a great location to settle for families but also great for young singles. According to the Business Insider, Portland was rated one of the top 50 places in the United States to live in. This doesn’t come as surprise, as Portland is one of the safest cities in America, with excellent schools, and a booming housing market, making Portland real estate stand out amongst other US cities.
One of the top neighborhoods in Portland to invest in is South Aloha, where there were 99 property sales in the second quarter of this year. Homes in this neighborhood spent an average of only 18 days on the market, and the median price was $335,000. At the end of the quarter, there were only 14 houses that were for sale. North Aloha is also rated a top neighborhood in Portland, with 134 sales. Homes spent an average of 16 days on the market, with the median sale price at $321,000. There were 21 homes for sale at the end of the quarter.
These statistics were pulled from the Regional Multiple Listing Service, where the number of homes on the Portland real estate market at the beginning of July 2017 were compared with the number sold three months before. The fact that these homes spent so little time on the market shows that the Portland real estate is definitely looking like a seller’s market, making Portland real estate a prime choice for real estate investors at the moment as these trends are likely to continue in the future. Homes sell quickly in these top rated neighborhoods, and don’t spend a lot of time on the market.
Portland’s location makes Portland real estate a top real estate investment choice. With real estate appreciation strong almost every year, you can’t go wrong with choosing to invest in Portland real estate.
Real Estate Investment Types
Like just about any other city in the US, Portland has an array of real estate options including condos, apartments, single family homes, and multi family properties. With a growing population and hundreds of new apartment building developments being built, multi family properties are a good idea for Portland real estate investment, because these multi family properties will appreciate over time while providing a positive cash flow.
Single family homes are always a good real estate investment choice, and as noted earlier, the average home in Portland is definitely not cheap; the median home in Portland is $416,700. Portland home values have gone up 5.0 % just during the past year, and Zillow estimates that prices will rise 3.4% within the next year. Although Portland real estate is expensive, investors will find that it will yield a high cash on cash return. Moreover, as evidence has shown that the property prices have risen just this past year, now is the time to go for a Portland real estate investment as home values are expected to keep going up.
According to Forbes, now is the best time to invest in Portland real estate, specifically retail or commercial real estate. With one of the best performing economies in the United States, Portland commercial real estate will provide real estate investors with better options. Better performing economies equal more jobs, which translates to a larger need for real estate. Investing in commercial real estate will allow the investor to rent out portions to multiple tenants at the same time, yielding a very high return rate. Although investing in commercial real estate is extremely pricey, it also has a better financial outcome and allows you to regulate your investments.
Related: What Are the Best Ways to Make Money in Commercial Real Estate for Rent?
Vacation Rentals
Portland is rated one of the top US cities to travel to. Because of all of the things to do, places to go, and places to eat that Portland has to offer, tourists are attracted to the city. Owning a vacation rental, specifically an Airbnb rental, is a great choice for those looking to invest in Portland real estate. Airbnb is a wonderful option for a real estate investor who wants to be a landlord, allowing them to charge daily, weekly, or monthly rates, which attracts short-term tenants to properties. Because rent in Portland is so high, real estate investors can easily use the rental income from their investment property to help pay their mortgage. Deciding whether or not to rent out your investment property as a vacation rental is based on factors including tenant occupancy and maintenance.
You can find out the latest income potential of an Airbnb property in Portland by using our Airbnb calculator.
However, Airbnb rentals have many advantages over traditional rentals because if a real estate investor is able to rent out the vacation rental to multiple tenants, it can generate a higher rental income than a traditional investment property in Portland real estate. Real estate investors have more choices on the way they would like to rent out their property.
Related: Vacation Rental Websites: Comparing Airbnb, VRBO & Booking.com
Portland’s perfect location and exciting city life make it a top choice for owning an investment property in the US. Compared to other US cities, Portland is considered a great location, allowing for the flexibility of real estate choices, including the option to rent out your investment property as a vacation rental or a traditional rental. Real estate trends have proven that investing in Portland real estate has been successful in recent years, making it a great idea for investing as well. This bustling city is a real estate investor’s dream, making Portland real estate a key city for making money in real estate.