Q: Are there any investment opportunities in North/NE Portland?
A: Now is an excellent time to invest in real estate! Sales prices and interest rates are at historic lows as rental rates continue to climb. The Portland Metro sales prices have dropped 8.2% from last year and are now as low as 2005 prices. At the same time, neighborhoods like the Alberta Arts District, Mississippi, and Hollywood, just to name a few, are growing in popularity and rental rates continue to increase.
When investing in property and building your real estate empire (regardless of the size), the most important rule is to just practice basic business principles. Your goal is to subsidize a fair amount of your mortgage with rental income, but not the entire thing. By having tenants, investors benefit from not only any appreciation over time, but also the rental cash flow. There’s also some inflation protection because as operating costs increase, rents can increase as well. Make sure you are also leveraging all of the tax benefits of depreciation and valid expenses.