If you’re thinking about buying a Portland Oregon Rental Property, one of the most important things that you must do as an investor is to determine if that rental is going to be a great investment or not.
Many investors are in the business of speculating, and they don’t take the time to determine if a property will be right for them or not. Don’t let this happen to you! Take the time to thoroughly investigate a rental property in Portland, or elsewhere nationwide, before you invest your hard-earned money in it.
Tips For Finding The Right Portland Oregon Rental Property
Choose The Right Area – Let’s face it, some areas in Portland are not what they one was two years ago so before investing in a new rental property, take the time to learn more about the ‘livability’ of the area because there could be a reason why properties are so cheap, and people are moving out.
Find The Right Asset – Once you find the right area, it’s important to also choose the right asset. This means that you choose the right property that’s not going to require a ton of money to get it into habitable condition.
Buy At The Right Time – After choosing the right area and asset, the next important thing to do is make sure you’re buying a property at the right time.
Calculate Your Margins
Wall Street firms that buy distressed properties aim for returns of 5% to 7% because, among other expenses, they need to pay staff. Individuals should set a goal of a 10% return. Estimate maintenance costs at 1% of the property value annually. Other costs include homeowners’ insurance, possible homeowners’ association fees, property taxes, monthly expenses such as pest control, and landscaping, along with regular maintenance expenses for repairs.
Invest in Landlord Insurance
Protect your new investment: In addition to homeowners’ insurance, consider purchasing landlord insurance. This type of insurance generally covers property damage, lost rental income, and liability protection2 —in case a tenant or a visitor suffers injury as a result of property maintenance issues.
To lower your costs, investigate whether an insurance provider will let you bundle landlord insurance with a homeowner’s insurance policy.
Factor in Unexpected Costs
It’s not just maintenance and upkeep costs that will eat into your rental income. There’s always the potential for an emergency to crop up—roof damage from a hurricane, for instance, or burst pipes that destroy a kitchen floor. Plan to set aside 20% to 30% of your rental income for these types of costs so you have a fund to pay for timely repairs.
Contact Rent Portland Homes
At Rent Portland Homes, we specialize in local property management for the Portland Oregon area.
You can count on us to assist you with sourcing, acquiring, and managing your rental property so that you can enjoy the passive income from owning a rental property without having to do any of the day-to-day management tasks yourself.
To learn more about our property management services, contact us today by clicking here.