Submitted by Bruce Hecht
I was working with some out of town investors last week and they were looking for what they called "Sleeper Investments" and "up and coming neighborhoods". We talked about those two things for a while and we came up with the following as our guidelines:
We focused on areas ,close in to DT Portland Oregon , around already and within a few short steps or blocks from already established proven areas that boast all the amenities buyers and tenants look for. Broad assortment of restaurants, coffee shops, internet cafe's,nightly entertainment, employment base.
Once we established our target areas and the acceptable parameters around them, we were off to the races. My investors were looking to add to their portfolio of Portland, Oregon investments. They bought their first duplex 4 years ago, then their second one 2 years ago. They put 35% down on each property and now they realize a positive cash flow of approximately $500.00 per month per property. Both of the plexes they purchased were in fine shape, they have put very little money into them since owning. They have calculated that each plex have appreciated approximately 15% per year, needless to say, they are thrilled to death with their investments. They pay a local property management company $75.00 per plex to manage them. That cost is very reasonable. It usually runs about 5-8% of the rent.
On our tour yesterday, we found 2 more plexes, one duplex and one 4 plex that looks promising. Great locations, just steps away for what renters look for, easy access to all parts of town, short walk to a bus stop, close proximity to 3 different colleges and most of all, nice clean plexes that are already fully occupied with solid rents!
The exciting part is that there are many possibilities and direction an investor can go in Portland. We have old,new, old and updated, we even have old and in need of TLC, just in case you want to do the work yourself and benefit even more from growing appreciation,a city that continues to grow, jobs,people and livability.
