Hi Dan,

There are a lot of good answers here. I feel the closer to downtown the better. However, I also feel that if you get a bank owned home or foreclosure with instant equity and a lower sales price then it might pencil out to be an amazing investment. That doesn't mean these homes are in the ghetto or trashed. Due to Portland's housing crisis I see great homes in great area all over town that are distressed.

Aaron Majors
Http://www.PortlandHomeAuction.com

Close in side NE/SE 57th and on Max or bus lines and bike lanes. No one asked if you qualify for the house with out the rental income? Get to a lender and find out exactly where you stand. If you are a first time buyer the $8000 is still there with income limits and if you are a seller of a home you have lived in for the past 5-8 years you might qualify for up to $6200. So there are some great reasons to buy and I have a client that is looking to buy and rent and move in 4 years and I feel that he will do pretty well but it does come down to the type of house and life style you live with how much privacy you want and need. Good luck to you.

Tom Inglesby, Broker
RE/MAX Equity Group inc
503-319-9035

Inner N, NE, SE for sure. Downtown and pearl too, but probably not the best for roommates as there are not many 2+ bedrooms in those areas. Anywhere near public transportion, especially since you can take bikes on the bus. I have a great 3 bedroom coming up hopefully in the next week, check my site, will put it on there as soon as it goes on the market.

Good luck in your search!

Tracey Hicks
Dwell Realty
503.317.5834 http://www.traceyhicks.com

Hi Dan, You have received many good responses for rental locations, however, in your situation, there are more important considerations. If you are an investor, not living on the property, location is very important, right after cash flow. Since you are going to occupy the house, just pick where you want to live. You can recognize a robust neighborhood as well as anyone. If you want to live there, so will other people.

Of greater importance, is the "nuts and bolts" of putting this plan in action.
1. The house needs to be able to accommodate renters. Generally this is a larger house. Seventeen hundred feet is going to become mighty cosy. A good scenario, but not the only one, is a "daylight ranch". You live upstairs and the renters live downstairs. This affords you some privacy. How much do you value your privacy?
2. Will you be able to qualify for a loan on a larger house?
3. Will be able to pay your mortgage on time when the rent is late or not being paid? This will happen.
4. Are you ready to take in strangers when you run out of friends and acquaintances? People who are willing to rent a room may not be the people you want to live with.
5. What are you going to do when the roommates don't get along? Or you don't get along with a roommate? Or you don't like the roommates friends?
6. I'm sticking my neck out here and saying you are not married. What happens when your new girlfriend, the one you really like, doesn't like the roommates any more? Can you still afford the house? This actually happened to me. The roommate left and I ended up marrying the girlfriend.
7. Can you do repairs? What are you going to do if the dishes are not being washed? Or the bathroom cleaned? Or people are eating the food of others?
8. Don't think that most people are as good a renter as you are.
9. The 3 most important things to being a successful landlord are: screen your tenants, screen your tenants, and screen your tenants.

I have owned rental property for over 20 years. Not everyone is cut out to be a landlord. But if you are, it is a very good way to increase your wealth.

Good Luck!

Dan,
I am agreeing with most of these agents' answers! I own rentals in the Pearl and close-in NoPo (between the N Mississippi 'hood and N Williams Corridor) and those latter two neighborhoods offer a lot of what you mention. The housing will cost more there as well, however. If you move a little further north into Piedmont you still have access to public transportation and access to the N Vancouver/N Williams bike corridor or deeper into Arbor Lodge south Kenton area and the Failing St bike bridge from those deeper NoPo neighborhoods. Your price point will be the ultimate determining factor for your area of choice. Hawthorne, Belmont, Alberta have all "been there, done that". If you're looking for a less-expensive option, sometimes buying on the edge of the mainstream is a value, especially if you'll be there a bit. You need an agent that can brainstorm the possibilities (and, believe me, there are many). Please feel free to check out my property search site at http://www.fabulousportland.com and pick and choose your favorite neighborhoods to get daily e-mails with new properties as they come on market..jj
Janeese Jackson, Principal Broker
Real Estate Resource
503-709-0802
jj@janeesejackson.com

Hi Dan,
Close in Alberta, Pearl District, close to campuses, Hawthorne, Laurelhurst. Rentals are high in demand now, because it's harder to get a loan now to purchase. You can't go wrong renting in Portland. I'd be more concerned about the property values in the area. It is realative.

Hi Dan,
Since you'll be renting to young people (most likely), I think your best bet is close-in SE or NE Portland. The closer to downtown the better. SE (Belmont, Hawthorne area) seems more popular these days with young people, but the close-in E Burnside area is gaining popularity. I think it would depend on your budget, but that's the area I would pick.

Good luck!

Kazuko 'Kat' Arai

Downtown and close in, on either west or east side. there are other affordable areas that make for great rentals, but for renting rooms, you want close in. West of 39th, South of Alberta, North of Powell. And anything on the westside from John's Landing to the Pearl and West into 25th.

Dan

Maybe these sites will help you......
http://www.zilpy.com/US/Oregon/Multnomah_County/Portland/

http://www.rentometer.com/

Good luck, Dunes

Follow the Max line - or proposed Max line stops. This is often the number one draw for our commuter town.