What is a Good Real Estate Investment?

As real estate investors, we get this question a lot. What is it about a home that makes it a good investment for a first-time landlord or a seasoned real estate investor? There are a few factors to consider, and it's actually a lot easier to figure out than you might think.

Start by answering some questions that will help you keep a house on your "short list" of good investments.

1. The Home's Appeal: is it a home that people would want to live in? Start thinking like a renter and consider a few main points.....does it have a good floor plan? Does it have easy access to schools, freeways, shopping etc? Does it have something extra special like a fabulous yard or a terrific view? If the answer is "yes" put the home on a short list to consider as an investment property.

2. The Financials: will the home rent for a good amount? Is it in an area of homes that perhaps sit in a desirable school disctrict or close to a major job source? If "yes" add it to the list.

3. The Deal: what is the home's list price? Is it far above the average home in the area? If so, it might not be a good one to consider. If it's priced fair or -- better yet -- under value for whatever reason, it should be added to the list.

Next, get in touch with a local real estate expert to find out what you can about the history of the home. Has it been foreclosed on? If so, there may be hidden costs like deferred maintenance that could cost thousands to fix. Or, perhaps the last owner was a contractor who added all sorts of great extra's that will add to the appeal of the home. It pays to do a bit of digging on the property itself before ruling it out -- or in.

Lastly, make an educated offer. Even in a buyer's market, there's a low-ball offer that will only offend the seller. The seller may dig in his heels, so to speak, and not even counter. It's imperative to offer a realistic price for the correct value of the home. And, if you've already done your homework, you know the place is a solid investment. So offer accordingly.

Some Portland Facts to Consider:
* Forbes cites Portland, Oregon as a favorable city for getting the most value for your homebuying dollar.
* Rents will continue to rise in 2009, by as much as 4% (according to NAR)

With interest rates hovering around 5% (4.875% as of today), home prices at highly affordable prices in many areas, and rents on the rise -- it's an optimal time to buy an investment property. We have our finger on the pulse of the local market and have a few "Best Buys" on our short list, we'd love to share these deals with you.

Call us today, start investing for tomorrow.