Interested in investment property in Portland. What is the rental vacancy rate,?

Asked by Mich, 93455 Fri Oct 24, 2008

and which neighborhoods have the fewest vacancies?

thanks!

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Brian’s answer
Brian, , Portland, OR
Mon Apr 20, 2009
I do a lot of apartment turns and the interesting phenomenon that has begun to occur in the last month is increasing vacancy rates. This is odd because if people are losing their home, and can't buy another one, then they should rent an apartment right? However, due to the high unemployment people are consolidating households to save expenses. So you have shrinking home ownership and a shrinking rental market concurrently. Whooda thunk it?
1 vote
Tom Inglesby, Agent, Portland, OR
Mon Apr 20, 2009
Mitch big turnaround in rising vacancies. The Sunday Oregonian newspaper talked about the unemployment and how it is affecting renters. They are doubling up but there are some great deals with some rents now covering all the costs compared to negative cash flow of a few years ago. Check out this blog of a few months back and Mark Barry is right on what he has to say. blog.oregonlive.com/frontporch/2009/01/Winter 2009 Newsletter.pdf
Tom Inglesby, Broker
RE/MAX Equity Group inc
503-319-9035
0 votes
June Lizotte,…, , Portland, OR
Sat Oct 25, 2008
Let me clarify my answer; I said 'highest" but meant 'best'. (meaning a low vacancy in the market and a very good thing for landlords wanting to keep their units full). I think you could gather that by the rest of my answer but I wanted to make it clear. It was late at night! Ah haa, no excuses, eh? (and a good thing I'm not a politician in the election). By the way, don't forget to vote! :)

June Lizotte, Broker
Providing "Real" Service
Prudential NW Properties
Portland, OR
www. junelizotte.com http://www.mynexthousenow.com
jlizotte@prunw.com
503-310-8032
Web Reference:  http://www.junelizotte.com
0 votes
Janeese Jack…, Agent, Portland, OR
Sat Oct 25, 2008
'morning Mitch,
as you can see from the other answers, vacancy rates in the greater Portland Metro are very low!! I have two rental properties that have had a 0% vacancy rate since purchase! As soon as I learn one tenant is leaving, I have it re-rented prior to their leaving! The actual rate will vary, however, from neighborhood to neighborhood! Lenders tend to use a 5% vacancy rate when qualifying for a purchase. I have an Investment analysis CD that was developed locally and I have permission from the software designer to share at no cost. If you would like a copy, please write or call. I am also planning a class in January (taught by this software developer) which will also be free. We will discuss the many different ways to evaluate an investment property. Currently there are several neighborhoods where vacancy rates are quite low such as downtown, NW Alphabet District, the Pearl, Sellwood and more. I have a great property search site at http://www.fabulousportland.com which will allow you to search for properties in just certain neighborhoods. I'd love to share more, can we make an appointment to sit down? All the best...
Janeese Jackson, Principal Broker
Real Estate Resource
503-709-0802
jj@janeesejackson.com
0 votes
June Lizotte,…, , Portland, OR
Sat Oct 25, 2008
Vacancy rates are probably at about the highest we've seen for quite some time due to the purchase market being challenged in the present economy. Anyone who is able to invest in well negotiated rental property (recommend multi unit duplex, triplex) and who have a commitment to the highest quality landlord tenant relationship will succeed and do well financially. Negotiating a purchase price that allows for a good return requires some calculations based on rents, expenses and condition of unit to determine need for reserves. You don't have to ( actually you shouldn't) depend totally on a gross rent multiplier to make a determination of value for profitability. The reason I say this is because the GRM doesn't consider the costs of operation (maintenance, management, repairs and upgrades) in the calculation. It also doesn't take into account the vacancy rates.

I hope this is helpful. Feel free to get your private login on my web site where you can save search criteria and favorites. I am happy to help you if you prefer. I have an independent research company survey my clients and post it to a public website for all to see with no input or influence from me. My clients, so far have given me a perfect rating, thus earning me a platinum award for customer service satisfaction. You may want to check it out. http://www.qualityservice.org

I'm hope this encourages you to contact me for your real estate search and acquisitions.

It's my pleasure to provide this information.

June Lizotte, Broker
Providing "Real" Service
Prudential NW Properties
Portland, OR
www. junelizotte.com
http://www.mynexthousenow.com
jlizotte@prunw.com
503-310-8032

Prudential NW Properties
Web Reference:  http://www.junelizotte.com
0 votes
Tom Inglesby, Agent, Portland, OR
Fri Oct 24, 2008
This is a good time to invest in rental property rates are at 95-96% very low because homes are harder to buy. The new down payments are at 20% min for non owner occupied units. Rents are up everywhere and the closer to Portland the tighter the market. If you could could buy and live in half this would be a smart idea if you only have a small down payment. Give me a call and I can talk about some ideas for what to look for?
Tom Inglesby, Broker
ABR, CRS, EA STAR eco broker
RE/MAX Equity Group Inc
503-319-9035
0 votes
Sara Lewis, Agent, Lake Oswego, OR
Fri Oct 24, 2008
The rental vacancy rate is what percentage of the time a unit or the the unit (depending on the number of units) is vacant. A terrific occupancy rate is right around 95%. I think there are a lot of neighborhoods that have few vacancies in Portland...including ther downtown area, NW, Pearl, Bellmont, Irvington, anything close to a college, Lake Oswego etc etc. On the flip side though, when you are attracting college students you will tend to get lower rents. These are all things that you should discuss at length with your realtor...and if you aren't currently working with one I would be happy to chat with you. I also have a terrific program on my computer that is an investment property analyzer...basically you plug in all the info about the property including purchase price, taxes, any HOA's, what the rents are, how much you are going to put down, your mortgage rate etc and it tells you the cap rate, gross rent multiplier, cash flow etc...I would be happy to run some scenarios for you if you would like. Otherwise good luck to you, with the rental market at an all time high, interest rates down, lots of inventory and the decline in prices it is such a terrific time to buy!
0 votes
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