Essential Advice for Portland Real Estate Investors | Lane Lowry
There will come a time when every real estate investor has to make their first move. Usually, an investor will opt to buy properties within their area. Given the importance of location, starting local is the ideal way to go.
Real estate investors looking into Portland properties should be aware that Portland is an excellent area for investment properties due to the market’s rising value. Here are some tips on how to stretch that investment even further.
Treat it Like a Business
There are several mistakes that inexperienced real estate investors make, one of which is not looking at investment as a business. Remember that Portland real estate investments are precisely that — an investment. They are not a hobby but part of a larger plan in which to generate more income.
Create a business plan — know how the business should be run, who the target audience (the tenants) will be, and even hire a management company to help manage all properties.
Once an investor has decided to focus on real estate within Portland, it’s time to take action. Money can and will be wasted if the investor lets their fear of losing control of the decision-making process.
When a good deal has been spotted — take it. Make the first move. This lesson can be applied to maintaining properties as well. Fear of spending money at times can result in losing more money down the road. It’s essential to be decisive and know when to take action.
Don’t Narrow Tenant Opportunities
Another common mistake for first-time real estate investors is that they narrow down the potential tenants too far. Some investors don’t want to rent to families with children or avoid renting to tenants with criminal histories.
While on the surface, these routes may sound like the easier path, in truth, they can end up being significant mistakes. Fair Housing Laws prevent discrimination of many forms, including against families, or based on sex, race, disability, or veteran status.
The Department of Housing and Urban Development for Portland has declared that a tenant’s criminal history is not a sound reason for denying their application, which means that this is not something that can be considered during the process.
Before investing in Portland real estate, it is essential to know that the city has recently made (as of 2017) a more substantial commitment to affordable housing. The commitment included the introduction of a new law. The new law mandates that multi-family properties with 15 or more units must allocate 20 percent to the initiative.
Therefore, investors need to keep this new law in mind while planning new developments. They should consider that only 80 percent of the apartments (of properties exceeding 15 units) will go over a certain threshold.
Article originally published on LaneLowry.org