Let’s take a look at different areas to look at property investment with the effects of recent legislation.
Featuring:
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Marcia Edwards: Bob, we’re going to talk a little bit about what’s in your wheelhouse in regards to investment property. People are trying to understand what legislation that’s coming down the pike or has already hit in regards to how it impacts landlords. Are there some alternatives in the marketplace that we can look at where we feel a little more bulletproof and back in control?
Bob Nelson: Well, yes, I’m licensed in Oregon, Washington, Idaho, and Arizona. And frankly, I don’t do much in Arizona. If a client says, “Let’s do something down there, I’m licensed and I have the capacity to go down and get that done”, but I’m focused primarily in the Pacific Northwest and Oregon is fine, but we have messed up our market pretty badly with legislation that’s going to scare outsiders from coming in, which suggests it’s going to take awhile to unsettle that market.
If you look at Portland as an example, it’s been messed up for two years. I don’t even consider Portland because prices are coming down, which means also somewhat of a panic sale mode. Portland brokers would probably smile at that comment, but they know exactly what I’m talking about. Things are breaking loose and things are coming down price wise and I don’t like to invest in a market where prices are going down. That just bothers me a lot.
So, I have focused a lot of my effort in the Boise area, cap rates are very strong and that would be Eagle, Meridian, Napa, and Boise. Very very good investment markets. I’m also looking at Northern Washington.
Marcia Edwards: So let’s bring this back to a typical investor in … let’s say Eugene right now. They’ve rehit some rent control, some other legislation that has seemed like insurmountable or maybe the camel’s nose is under the tent. Regardless, they’re moving on and they want to set a course. You’re saying geographic range would be a good way to go?
Bob Nelson: Well, it is as long as you can find good management. If you have to think in terms of managing it yourself, stay as close to home as possible, but as long as you can find good professional management, yes absolutely. Get a broker that understands that market though, ’cause you’re investing in an area that you’re not familiar with.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30 on KPNW for the “Real Estate Today” radio show.
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