Home Buying in Portland>Question Details

Blacryan, Both Buyer and Seller in Portland, OR

What is best way to invest 200k cash for steady cash flow monthly. I am looking @ vacation rental condos in pearl, houses, anything, best cash flow.

Asked by Blacryan, Portland, OR Tue Feb 1, 2011

I inherited a little over 200k, I have 0 debt and have everything paid off. I don't own a home. What I am really wanting to do is pull in a minimum 2k after all expenses a month off just rental income if possible. I don't mind managing 1 property myself, but if I had more I would want to go with a management company. I really like the idea of vacation rental's as I would be able to go up to Portland when I need to and stay there. I currently live in Salem, but make many trips up to Portland and would love a place of my own to stay at when I feel the need.

What would be the best way to invest 200k cash with the idea of maximizing monthly cash flow?

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Answers

9
Hi, There

I would suggest based on your needs exploring the option of buying a triplex. You could rent out the other 2 units, and live in 1 while your here in Portland. You get better cash flow, and if you get tired of the property managment aspect. You can still hire a property manager and still make a positive cash flow without any work on your end. You also have tax benifits(I'm not a tax expert) from renting as well.

I hope this helps!

Kimberly Kinville
East Metro Specialist
0 votes Thank Flag Link Sat Feb 12, 2011
Hi Blacryan,
I would suggest to buy REO's if you have the cash. You can buy either a duplex or a triplex in Portland.
Right now it is a really good time to purchase a few homes ( or duplexes) putting 20% down on each of them . You may be able to get the cash flow you are looking for or maybe more, depending what we can find.

I can show you several listings available in the area. Email me at: chamberlincarolina@gmail.com
I will assist you with that.

Carolina
0 votes Thank Flag Link Tue Feb 1, 2011
You have many options. If you invest in a single property (condo, single family residence, etc) it will be hard to pull 2k a month especially if you would like to use the property occasionally. You can look into a duplex or triplex where you can rent one or two of the units and use the vacant one for yourself. However, the best cash flow will be to have the property fully rented. These properties can be fairly easy to handle on the management side as well.
Call with questions as we specialize in investment real estate and property management.
Christian Solsby
Paragon Equity Partners
503-701-2849
0 votes Thank Flag Link Tue Feb 1, 2011
Wayne:

I get what you are saying, my plan isnt to have a mortgage... For example there are numerous duplex's I could purchase in Salem that are around 130-150k that rent out 700-750 per side. that would bring in 1500/month prior to any expenses and as I have no mortgage... that isnt going to be a ton.

My concern with the vacation rental's is that I could use it for the days when I am going to school. I commute to PSU 2-3days a week and it would be awesome to have a place to stay while I am there over night. Plus it seems as there is much more potential in the summer time to make much more of a return.

I'm 22, rent an apartment with a roommate at the moment paying 315/month. I make enough working for the state to live happily... Really I just want to supplement my income so I can take some time off and go do some things I would like to experience while I am young. That's my main reason for wanting the cash flow/monthly return over a long term appreciation or investment. From what I see it doesnt appear that purchasing a house/condo now is going to cause me to lose my principal at any point in the future. Especially if I am buying a short sale / pre foreclosure / bank owned.

Maybe this can help explain a bit more the direction I am trying to go? All I know is that having 225k at 22 gives me many many options for having a successful / prosperous future. But it also seems to put a lot of stress on you to make the right decision and not do something to mess it up.
0 votes Thank Flag Link Tue Feb 1, 2011
if you are not planning to have a mortgage and want to make the most possible cash flow on your investment I would suggest going outside of the box (Portland northwest) I have been looking at a few pockets in the clevland Ohio market where you can purchase a property for 60 to 70k that will rent for 1000 to 1200 per month gross...around 750 net after all exp. Paid..property management included...
Flag Sun Dec 23, 2012
I don't see you netting 2K after expenses with what you have to invest. You certainly have enough to buy one house and the rental payments will cover the mortgage. Maybe two. It been a long time since you could buy a house and the rent covers the mortgage. There are many bargains out there right now. Vacation rentals are tough to keep full in the beginning. In the early years you will have to do a lot of advertising and the management can be intensive; cleaning the unit, exchanging keys. etc. I have owned and rented out condos on the coast and I own rental property in Portland. Absentee or long distance Landlording is tough with what you have to invest. Your best bet is to buy something in Salem if that is where you plan on continuing to live. You have a nice little nest egg to get you started. You are smart to ask around about the best way to invest it.
Web Reference: http://tigardorhomes.com
0 votes Thank Flag Link Tue Feb 1, 2011
There are many possibilities, depending on how hands on you want to be. A vacation rental with the right amenities can bring in more than twice the monthly rentals. I specialize in second homes on Mt. Hood and own a little vacation rental log cabin, called the Laughing Bear Log cabin, on Mt. Hood, and we brought in $36,000 last year. It depends on if you want a fixer or not, for rate of return. Much to consider.
Call anytime 503-936-2432
-Jewel of the Rock Stockli, Prudential NW Properties
0 votes Thank Flag Link Tue Feb 1, 2011
Hi Blacryan,

I agree with Stephen on buying 2 either in Portland metro or Vancouver.
I would not rent them, I would do seller financing to a qualified buyer that could not get bank financing because they are self-employed or they have a bad credit score with good income and assets. This will net you money now down payment, better cash flow than rent and a balloon payment in 3,5,7 years. With proper setup you have very little risk of losing anything.

Kevin Sucher
Principal Broker
503-214-4139
0 votes Thank Flag Link Tue Feb 1, 2011
Best cash flow is picking up two bank owned homes for 100K a piece.

OR picking up 1 bank owned home in a high priced, high demand residential area - like Hollywood District, Sellwood, Mt Tabor, Woodstock, etc.

Both would net you high profits.

I work with investors all day long. (Tiring - but fun!)
0 votes Thank Flag Link Tue Feb 1, 2011
The answer to your question is very in depth and has many possiblities. I work with investors who invest in cash flow properties and have an excellent system they use to do so. Feel free to contact me and we can talk about the different options available to you. Right now you need to get as much info as possible and then make an educated decision with the information that you collect. I look forward to talking with you soon so that I may help you do what is best with this decision.

Take care,

Rian Muleback
0 votes Thank Flag Link Tue Feb 1, 2011
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