When you are looking for income property in the Portland area, there are a couple of key differences to keep in mind. First, there are multifamily units and single family homes. A multifamily unit might be a duplex, which is two units, or a larger property with four or more units available for rent. A single family residence is only one unit. The biggest difference in these two types of properties is that a multifamily unit will bring you more cash flow, but the property value will not appreciate very dramatically. A single family residence on the other hand will appreciate greatly over the long term, but the cash flow is not as high because you are only collecting one rent.
Location is extremely important when looking for income property. Make sure you talk to a real estate broker or a firm that does sales as well as property management, like we do here at Jim McNeeley Real Estate. You want to learn about the best location for the rental market, and you will also get an idea of how much rent you can expect in different areas. Buying an income property where the highest rents are found might be a good idea and you’ll also want to know what kind of appreciation you can expect.
Another big point to consider is whether you want to buy a property that is new construction, or whether you would prefer an older home. New homes are often on smaller lots. However, they also have brand new appliances and there will not be as many necessary repairs. Usually, there is a one year warranty that covers any problems the first year you own the home. That is a huge benefit. Older properties have benefits too. They can often be in great locations that are desirable and established neighborhoods. Those areas might bring in higher rents. The older homes might also be found in locations that have larger lots, which will appeal to tenants who might be looking for a large backyard space.
You can find a variety of income property possibilities in Portland. If you need any help looking, or you’d like some advice on what kind of rental market you are buying into, please do not hesitate to contact us at Jim McNeeley Real Estate. We would be happy to work with you.