You should start looking so you don't miss THE ONE! The good properties STILL go FAST and you'll need a realtor who understands the rental market from personal experience or through working with investors. Anywhere close-in, close to public transit & with 2 baths would be ideal. 2nd bath not in basemsnt. After all this would be an investment so you'd need to know neighborhood stats, school district info, and more thatn that what renters are willing to pay & your finacing. If you are to pay cash then you have a bit more wiggle room but if you finance the prperty then you'll have to weigh rent vs. your payments & interest rates on non-owner occupied loans.
All in all start looking. Whether you wait or not, you'll come to understand what is a good value & what is not based on properties you see. Then you'll know when the property and price make sense. Remember thorugh a loan will take 30-45 days to close. Timing too.....if you are seriousl;y only considering Sellwood and SE, School start dates may be a comsideration with long term renters. Have the property before school starts!