Investing in Rental Properties in Portland

Summary
In this episode of Off The Record Podcast, Joe and Makayla explore the ins and outs of investing in rental real estate in the thriving Portland real estate market. They provide valuable insights into how to successfully navigate Portland rental properties, whether you’re a beginner or looking to expand your portfolio. From understanding rental property investment strategies to identifying the best neighborhoods for rental properties in Portland, this episode is packed with actionable tips to help you make informed decisions. 

Episode Highlights

Why Invest in Portland Rental Properties?
Joe and Makayla discuss the numerous benefits of investing in Portland rental properties, including potential cash flow and long-term appreciation. They emphasize how strategic real estate investing in Portland can lead to passive income through rental properties.

Setting Your Investment Goals
Learn how to define your investment strategy. The hosts break down the different types of properties (single-family, multifamily) and the importance of aligning your investment goals—whether it's cash flow or property appreciation—with the right location. Key factors such as population growth and job opportunities are crucial for selecting the best areas for rental investment in Portland.

Top Portland Zip Codes for Rental Investment
Makayla shares her analysis of the top Portland zip codes that are ripe for investment. Discover which neighborhoods, such as Hillsboro and Gresham, offer lucrative opportunities to buy rental properties in Portland, based on metrics like average rent and vacancy rates.

Navigating Financing Options
Explore various rental property financing options in Portland, from traditional mortgages to creative financing solutions. Understand the pros and cons of each method and learn how to leverage your existing assets to grow your investment portfolio.

Evaluating Property Deals
Joe and Makayla offer tips on how to assess potential properties, including renovation costs and cash flow projections. They introduce online calculators to help you analyze expenses and predict rental income potential in Portland.

Property Management: DIY vs. Professional Help
Should you manage your rental properties yourself or hire a professional? The hosts weigh the pros and cons of each approach, providing insights on what to look for when hiring a property management service. They also recommend local companies that specialize in rental property management in Portland.

Legal Considerations and Tax Implications
Understanding Portland rental laws and regulations and working with a CPA for rental property tax considerations in Portland are essential for a successful investment experience. Joe and Makayla share best practices for consulting financial professionals before making any property purchases.

Ready to dive into Portland real estate? Reach out to the LivPortland team for personalized advice on starting or expanding your property investment journey. If you found this episode helpful, please leave us a review and share it with others—your path to successful rental property investment begins here!

Thank you for listening to this episode. Stay up to date on the latest trends and insights by subscribing to our podcast and following us on social media.

For more information about buying or selling in the Portland Metro real estate market, please visit www.LivPortland.com or contact us directly.

We appreciate your feedback, so please leave a review and let us know what topics you would like to hear more about.

Transcript

00:00:08:17 - 00:00:26:10

Joe Reitzug

Welcome to Off the Record talking real estate with Joe and Makayla. If you're interested in the Portland, Oregon real estate market and what the unvarnished inside scoop. You've come to the right place. Thanks for giving us a listen. Okay. Welcome, everyone. Thanks for joining the show. Hello, Makayla. Hi.

00:00:26:11 - 00:00:27:01

Makayla Mast

How are you?

00:00:27:02 - 00:00:27:13

Joe Reitzug

I'm good.

00:00:27:13 - 00:00:35:19

Makayla Mast

How are you? I'm good. The sun is shining. We're on take two because I didn't have my microphone on the first time, but we caught it early, so that's okay.

00:00:35:21 - 00:00:36:15

Joe Reitzug

It happens.

00:00:36:15 - 00:00:37:12

Makayla Mast

We're rolling.

00:00:37:14 - 00:00:44:12

Joe Reitzug

We're rolling in. It's October 2024, and it's like close to 70 degrees out.

00:00:44:12 - 00:00:45:07

Makayla Mast

It's lovely.

00:00:45:12 - 00:01:02:16

Joe Reitzug

It is lovely. So yeah, we are in a good space here. And today we've got a really, really cool show for you guys. We get asked about investment properties a lot. Is it a good time to buy? Where should I buy? What should I look for? This, that and the other. And so we thought we'd break it down.

00:01:02:16 - 00:01:25:23

Joe Reitzug

Makayla did a ton of research and background and just got all of her thoughts together. And she did a wonderful job putting this together. Nicely done. Thank you. So the overview of what we're going to be doing, we're going to define your investment strategy, what you should be looking to put together as a strategy for getting into the investment game.

00:01:26:01 - 00:01:38:10

Joe Reitzug

We're going to look at the best zip codes in Portland to invest in different financing options property selection, analyzing details, property management and always some legal considerations.

00:01:38:12 - 00:01:39:13

Makayla Mast

You got to.

00:01:39:15 - 00:01:40:12

Joe Reitzug

You really do.

00:01:40:14 - 00:02:05:02

Makayla Mast

Yeah, this was a fun one. Like Joe said, we get asked these questions all the time, and I was doing a couple of deep dives for some clients and got a lot of really interesting information, so I thought it would be fun to share it here. There's a lot of different opportunities for real estate investments all over the country, but we wanted to hone in on single family homes here in Portland and looking at a long term rental strategy.

00:02:05:02 - 00:02:24:02

Makayla Mast

So someone who's interested in purchasing a single family home, keeping that for a long time and putting a renter in there, hopefully to pay your mortgage and then some. Or maybe you don't have a mortgage, so you're just getting cash flow, but you know, even if you are interested in investing today or next year, I hope this can still be interesting.

00:02:24:02 - 00:02:28:23

Makayla Mast

I think it has some relevant info. Fun things to share. Even if you aren't going to be investing soon.

00:02:28:23 - 00:02:40:02

Joe Reitzug

So yeah, and multifamily might be part of the conversation a little bit as well. But multifamily is a really difficult one right now because there just is not any inventory.

00:02:40:04 - 00:02:42:10

Makayla Mast

So low inventory.

00:02:42:10 - 00:02:43:12

Joe Reitzug

I like such.

00:02:43:14 - 00:02:44:12

Makayla Mast

Almost every day.

00:02:44:13 - 00:03:03:23

Joe Reitzug

I know it's incredible and that seems to be what a lot of people are really wanting because, you know, like a duplex, you move into one side and rent out the other side and you got a great situation, but they're just not there. You would think that we would have some developers, builders, you know, jumping on that, but it just doesn't seem to to be happening right now.

00:03:03:23 - 00:03:24:02

Makayla Mast

Yeah. It's interesting. I wish we had more to share on that one. Hopefully we'll do an episode on that later this year. First step is defining your investment strategy. Whether that's single family, home, multifamily, condo, apartment, really we're just going to be talking about single family today. But if you're interested in looking into the others, we can definitely pull stats on that for you.

00:03:24:03 - 00:03:45:14

Makayla Mast

The next thing I think that's important to look at is, are you looking at a cash flow versus appreciation or long term for short term rentals. So short term rental game that's a little more specific to the different markets in the area. Like at the coast, in wine country,  some areas of downtown Portland. But really we don't see that a lot here.

00:03:45:14 - 00:04:07:14

Makayla Mast

But lots of opportunity for a longer term investment strategy here, which is great. And the the first thing we like to talk about here is location always location. Very, very important. So we did a deep dive on that because choosing the right market, the right neighborhood population, job market, all of those things are worth considering when looking for your investment.

00:04:07:16 - 00:04:31:05

Joe Reitzug

Yeah, you really want to look at jobs as well. What's the local job market doing comparing rental rates? There's just a lot of due diligence you need to do on that, but I think you really broke it down. Well, location is critical, and everything else from there kind of can fall into line because if you get a bad spot, people just aren't unless they're desperate, are just aren't going to go for it.

00:04:31:05 - 00:04:46:19

Joe Reitzug

You need to have something in a neighborhood or in the area that has some sort of intrinsic value, has either a big job population, or it's got to be something really cool that people can walk around and do different things for. There's got to be something that adds value.

00:04:47:00 - 00:05:06:22

Makayla Mast

Exactly. And for your long term appreciation goals, if you're buying a neighborhood that's a little rough, you know, maybe the home is a little cheaper. It might be cheaper for a reason. Yeah. And also, when considering location, if you plan on managing this property yourself, which we'll get into the pros and cons of that, maybe consider how far you are from this rental property.

00:05:06:22 - 00:05:15:11

Makayla Mast

Are you, you know, a ten minute drive or is on the complete other side of town? Because long term, if you're doing little repairs on this place, that could be pretty taxing.

00:05:15:16 - 00:05:18:12

Joe Reitzug

Yeah, it really could be. Let's talk about zip codes.

00:05:18:18 - 00:05:20:02

Makayla Mast

This was so fun.

00:05:20:07 - 00:05:21:01

Joe Reitzug

To dig into.

00:05:21:01 - 00:05:43:01

Makayla Mast

This. Okay, so we recently subscribed to this really fun website which we'll share all the info on. And there's even more that we can share. But it's called Re venture.com. And they do very accurate data based too. Like our our MLS. So they pull from that and then also like the public websites like Redfin Zillow Redfin.

00:05:43:01 - 00:06:07:16

Joe Reitzug

But they also do the Federal Reserve, the US Census Bureau. So it's a lot of different statistical data points that they're working off of, but it's really just super information that it has been in the past, super hard to get. So for them to break all this down for us has been very helpful. And we're actually going to have a new podcast coming out that digs into the data analysis behind real estate trends.

00:06:07:16 - 00:06:11:04

Joe Reitzug

So look for that. But that should be coming out in the next week or two.

00:06:11:06 - 00:06:34:10

Makayla Mast

Yeah, we are nerds about this data right now. It's been really helpful. So when we're searching for investors, the big conversation is what is the cap rate. And if you don't know what a cap rate is, it's defined as the unlevered annual return a real estate investor can expect if they were to buy a property at prevailing home values and rent it out at prevailing rates.

00:06:34:12 - 00:06:53:18

Makayla Mast

A higher cap rate means more cash flow returns to investors, but it also means that it might be, you know, you might be looking at home prices that are a little bit on that higher end as well. So a higher cap rate might not be the right thing for you, but it is a helpful metric when analyzing investments, wouldn't you say?

00:06:53:20 - 00:06:54:20

Joe Reitzug

Yeah, definitely.

00:06:55:00 - 00:07:16:07

Makayla Mast

So it's extremely hard to get accurate cap rates on zip codes and just overall areas in general. So that's not the only metric that we like to look at, which is why we did a deep dive. So I started looking at what the highest rates are per zip code. And then after that I compared the vacancy rate, the average home values.

00:07:16:07 - 00:07:34:05

Makayla Mast

And then I cross-referenced the cap rates at the end just to see kind of where we fell. And we were pretty dang close. So starting with average rents because I just think that's super interesting. I think it's important to note that the median rent for a house in Portland is between 1800 and 2000 per month.

00:07:34:06 - 00:07:36:02

Joe Reitzug

Which is lower than what I thought it would have been.

00:07:36:05 - 00:07:37:06

Makayla Mast

Me too.

00:07:37:08 - 00:07:39:22

Joe Reitzug

So that's the entire Portland metro areas, right?

00:07:39:22 - 00:07:56:22

Makayla Mast

And houses. So not considering condos. Yeah. So renting in at number one was Mount Hood Village, which I didn't even know was in my search. But hey, let's include it just because it's interesting. And the average rent there is $4,417.

00:07:56:22 - 00:08:00:07

Joe Reitzug

And I think some of that might be short term rental, right?

00:08:00:09 - 00:08:01:10

Makayla Mast

No. No it's.

00:08:01:10 - 00:08:01:19

Joe Reitzug

Not.

00:08:01:21 - 00:08:14:20

Makayla Mast

No. Wow. It's an interesting market. And then just under that was Damascus. That's zip code 97089 if you don't know. And that's, the average rent is $3,897.

00:08:15:01 - 00:08:17:18

Joe Reitzug

That blows me away. How can how can that be?

00:08:17:19 - 00:08:41:06

Makayla Mast

I don't know, but I've been staring at that for a couple months now, and I wanted to really look at it. So, it was interesting, but under that I think is pretty good guess here if you're wondering. But it's Lake Oswego Stafford area. The zip code 97034 average rent is $3,018. Yeah. Then we have Sherwood at 2954.

00:08:41:08 - 00:09:16:20

Makayla Mast

Lake Oswego again at 2940 per month. West Linn at 2928. And then all the way up in Ridgefield, Washington, also right around 2900 a month. And then we have zip code 97229 in northwest Washington County, kind of a Cedar mill Bethany area. That's 2786. And then we have a good old Hillsboro, 97124 zip code at 2780. And then last but not least, also at 2769 is Vancouver, the zip code 98684.

00:09:16:22 - 00:09:40:23

Joe Reitzug

We'll have all these posted at livportland.com. You can go click on our blog. That's where we host our podcast. And the show notes for today's episode. We'll have that entire graph that shows all of this because we also have vacancy rates included in this. And Damascus at 3897 for an average rental rate.

00:09:41:04 - 00:09:45:20

Joe Reitzug

The vacancy is only 2.09, which is Incredibly  low.

00:09:45:20 - 00:09:59:14

Makayla Mast

Right. Telling you that there's a huge demand there. So the the overall national vacancy rate is 6.7% here. Locally it's 6%. But to see it all the way down to two is definitely noteworthy. Yeah.

00:09:59:16 - 00:10:15:14

Joe Reitzug

Some of the other noteworthy area Sherwood was 2.5 which is extremely low northwest Washington County, Bethany 2.38, Hillsboro 3.39, and then Vancouver 3.15. All of those are amazingly great vacancy numbers.

00:10:15:14 - 00:10:31:02

Makayla Mast

So and then the five zip codes with the highest vacancy rates. So maybe areas you might want to steer away from. Are actually in our downtown northwest Portland, southwest Portland and the downtown area. And then Yamhill in Corbett.

00:10:31:04 - 00:10:31:19

Joe Reitzug

Interesting.

00:10:31:19 - 00:10:42:22

Makayla Mast

Yeah, very random and unpredictable. Yeah. Inner downtown northwest area also has one of the highest cap rates. So kind of a risky game there.

00:10:42:22 - 00:10:45:12

Joe Reitzug

Risk reward. Yeah. Interesting.

00:10:45:14 - 00:10:57:11

Makayla Mast

So then I went and looked at the average home values for those ones that had high rent, low vacancy rate. Really interesting. One was Vancouver. The average home price there is 480,000.

00:10:57:15 - 00:11:03:02

Joe Reitzug

Wow. So 480 on an average. Is that sale price or list price?

00:11:03:06 - 00:11:03:19

Makayla Mast

Sale price.

00:11:03:19 - 00:11:14:03

Joe Reitzug

Sale price and 2769 and average rent? That feels like it could probably pencil out pretty quickly depending on your down payment. Right. Nice I like it.

00:11:14:07 - 00:11:38:00

Makayla Mast

And then Hillsboro pretty close as well. Average sale price of 553. Which where we see all the time. That doesn't mean that there aren't things underneath that that could still be in great condition. And then Damascus average sale price is 669. So a little bit of a higher price point. But again, you're going to get a pretty good rate over there for your rent.

00:11:38:02 - 00:12:00:04

Joe Reitzug

I wonder if Damascus has that big draw. When I hear of Damascus, I think about properties on acreage. Right. And I think those are have been historically extremely hard to find for renters. Right. A lot of people want to buy that. But when you're talking about almost $670,000 as the average, that's a pretty stiff.

00:12:00:06 - 00:12:00:14

Makayla Mast

Right.

00:12:00:15 - 00:12:17:06

Joe Reitzug

Price tag. So a lot of people then think, well, maybe we want to rent out there while we're saving money, and that's the lifestyle they want. So my guess is maybe Damascus is kind of hit that sweet spot of people renting their homes that are on property, like on an acre or two acres or whatever, like that.

00:12:17:06 - 00:12:25:22

Makayla Mast

Yeah, I agree. Interesting. And then another noteworthy one was Sherwood that made it in our final list. Average price 637.

00:12:26:00 - 00:12:53:05

Joe Reitzug

Yeah. That's interesting. It really depends. I think, you know, getting your strategy put put together. All of these numbers are great. But then remember location is really your number one on where you're going to be trying to to set your plans and we're going all around these different places like Damascus, Sherwood, Hillsboro, Vancouver, all that type. Finding out what works best for you is critically important.

00:12:53:05 - 00:12:56:01

Joe Reitzug

And then plugging in the numbers from there, I think. Don't you agree?

00:12:56:02 - 00:13:02:20

Makayla Mast

Right. It doesn't mean that all of the other cities in our area are bad. It was just interesting to look at the top ten.

00:13:03:02 - 00:13:12:12

Joe Reitzug

Yeah. Good information I like it. So let's talk a little bit about the financing and what are the different options that people have for financing, Makayla.

00:13:12:15 - 00:13:36:08

Makayla Mast

So if you're not going to be buying with cash, it's important to talk to a mortgage broker who can help you make sure that this is going to pencil out, but takes a little bit more planning with that. Typically, they recommend staying away from FHA loans just because mortgage insurance is going to eat up a lot of that monthly payment that you owe, you know, making your return not so great.

00:13:36:10 - 00:13:46:07

Makayla Mast

But a lot of investors look at hard money loans or even partner up with other investors or family members or friends just to get their feet in the door.

00:13:46:09 - 00:14:22:12

Joe Reitzug

Yeah. And, you know, like we always talk about on our other podcast, it doesn't cost anything to just go sit down or get on a phone call with your trusted lender and really find out what your options are. Because if you've got, good paying job with income and you've had that for multiple years, you can be in a really good situation to maybe have a couple of different mortgages, but it just is going to depend on your overall situation and getting in to talk to your lender early and getting someone that knows and understands financing for investments, right.

00:14:22:12 - 00:14:45:22

Joe Reitzug

Because it is so much different than buying a single family residence to, you know, owner occupied and non-owner occupied game is a whole different ball of wax, and having someone that understands that dynamic is critically important. Reach out to us if you guys need any references for that. We've got a couple of the very best in town and, it's super easy.

00:14:45:22 - 00:14:55:00

Joe Reitzug

You just give them a phone call in ten 15 minutes later, you know exactly where you stand, what a good strategy is, what the different options are, and you can kind of move forward from there.

00:14:55:01 - 00:15:21:13

Makayla Mast

Yeah, exactly. A lot of what I wanted to hit on really quick is a lot of investors, you know, if you're in this for the long game, they start with buying their own primary residence. Maybe they only put 3.5% down, stay in that home for just two years, then go and buy your next home, either using equity from your current home or cash that you've saved, and then making your your first home a rental property, and then going from there.

00:15:21:19 - 00:15:28:03

Makayla Mast

And we call that leveraging your debt, which isn't the sexiest term, but a lot of people do it and they find great success with it.

00:15:28:03 - 00:15:37:00

Joe Reitzug

So yeah, for sure. So let's talk about property selection. What are you looking at when you're thinking about buying a rental property.

00:15:37:01 - 00:16:03:18

Makayla Mast

So we've talked about location. It's important to analyze property condition. So is it going to need new siding in the next two years. Has the interior been updated. Are there you know, obvious signs of leaks? These are all things that happen in due diligence, of course, but when you're scanning the internet looking for property, it's important to look at condition because I mean, you know, is it smart to invest in something that's going to need a lot of money in a couple of years?

00:16:03:18 - 00:16:29:22

Joe Reitzug

You want to know exactly what your deferred maintenance cost are going to be like. If the roof is 20 years old, you know that's going to be a big ticket item for you coming up. So being able to assess that, I think is critically important just for cash flow and for you know, knowing and understanding what's going to be coming up, but also during the purchase, trying to get as many of those things handled by the seller as possible is key.

00:16:29:23 - 00:16:30:15

Makayla Mast

Exactly.

00:16:30:15 - 00:16:33:02

Joe Reitzug

This is the marketplace for that right now. Quite frankly, it.

00:16:33:02 - 00:16:50:22

Makayla Mast

Is the most common pitfalls, that investors list or overpaying underestimating repair costs and overlooking property management needs. So all things to consider when you're in your search. Let's talk about analyzing deals. That's the fun part and I yeah.

00:16:50:22 - 00:17:11:22

Joe Reitzug

And getting a full list of all the expenses your mortgage costs, your taxes, your utilities. And if you're going to be using a property manager, what that cost looks like getting all that put together so that you can see compare to what your potential rent is going to be, you just got to do that math and get that put together.

00:17:12:00 - 00:17:14:21

Joe Reitzug

And always on the side of caution with.

00:17:14:23 - 00:17:17:16

Makayla Mast

Always estimate above what you think.

00:17:17:16 - 00:17:18:01

Joe Reitzug

You need.

00:17:18:01 - 00:17:32:21

Makayla Mast

To be. Yeah, especially with property taxes. I mean, really understand that it can raise 3% year over year and often does. Right. And maybe stay in a county that has lower property taxes so you can see a little bit more of a return there.

00:17:33:00 - 00:17:51:13

Joe Reitzug

There are a lot more people now that will take a loss, right? Take a monthly loss or a yearly loss or just barely break even or whatever, just to get into a property, knowing that appreciation is going to take care of the rest for that next, you know, especially if you're thinking about at least a 3 to 5 year hold.

00:17:51:15 - 00:17:57:21

Joe Reitzug

And that can be a good strategy, too. Most people think, oh, I needed to cash flow XYZ.

00:17:57:23 - 00:18:01:13

Makayla Mast

Don't forget your investing. Yeah, this is a long term investment as well.

00:18:01:15 - 00:18:22:21

Joe Reitzug

Yeah. If you're looking to flip it in a year. Yeah, that's a whole different conversation. We're talking about the long term hold. And you know traditionally we're looking pretty good over the five year span for appreciation rates in the Portland metro area. It goes up it goes down. But in the end it's always a net positive. You know it's.

00:18:22:22 - 00:18:47:21

Makayla Mast

Just waiting for the right time. Yeah. Yeah. And they have some great tools and calculators online just to punch in numbers as you're searching. So we'll definitely post that as well on our website. And in the show notes, the next piece we want to talk about is property management. So deciding whether you're going to manage this property yourself or you're going to refer it out to a property management company, is something worth taking some time to think about?

00:18:47:23 - 00:19:07:19

Makayla Mast

You know, if you're on the fence, I definitely recommend just interviewing a couple property managers. Of course, we have some great ones we can recommend asking, what is it that they cover? Or are they doing the marketing for you, or are they just doing the paperwork? I mean, what do you know, do their duties and responsibilities? Ultimately come out to?

00:19:07:20 - 00:19:25:07

Makayla Mast

And is it worth it for you to maybe not see as much of a cash flow to have somebody else do that for you? If not, if you think you want to do it yourself, which is great. We definitely recommend going to some classes. They have great ones all over the Portland area on things to look out for.

00:19:25:12 - 00:19:30:15

Makayla Mast

You know, the paperwork that you need to have in order. We are experts on this, so we don't want to speak to it.

00:19:30:16 - 00:19:33:09

Joe Reitzug

Or we can say is that it's extremely complicated.

00:19:33:10 - 00:19:35:16

Makayla Mast

Yes. And it changes all the time.

00:19:35:16 - 00:20:08:01

Joe Reitzug

It changes all the time. Portland has some. It really depends on which county you're in as well and which jurisdiction as far as what you're going to be required to do, with a tenant and how that lease agreement and rental agreements handled and all those type of things. So if you can plug in the cost of a property management company, it's well worth it, especially if they're going to handle all the paperwork, get you new tenants and really scrub those leads hard to make sure you're getting the right people in your investment.

00:20:08:01 - 00:20:23:03

Joe Reitzug

It's totally worth it. But, you know, a lot of people do choose to do it on their own. And, just make sure that you've done your research and you know what the rules and the laws are around the rental game when it comes to wherever you're located for your investment, right.

00:20:23:06 - 00:20:39:22

Makayla Mast

And that kind of leads us into our next section, which is legal considerations. And I think a big thing to consider is maybe ten years, five years down the line, you want to sell the property or you need to sell the property. Well, you can't just rip a tenant out of there without some repercussions.

00:20:39:23 - 00:21:09:19

Joe Reitzug

Well, you need to give certain notices. And if you own a certain number of investment properties, you may be required to pay them a certain amount. Once they leave, even after you've given them notice. So there's there's a lot of different things to consider there. We can post some links in our show notes about some places to go for the different counties from Multnomah County, Clackamas County and Washington County where you can, you know, get an idea.

00:21:09:19 - 00:21:21:05

Joe Reitzug

All of those counties have links that you can go to to just kind of get an overview of, hey, this is what it means to have a tenant and the relationships that have to be in place for that.

00:21:21:07 - 00:21:50:15

Makayla Mast

There's a lot of media right now around owning rental properties, and you can do it yourself. And I and I believe those things are true. But I also think these other legal things are worth considering because like I said, it's a lot and we are not experts on it. The other thing is working with a CPA, I think you should have a knowledgeable, savvy CPA if you're considering doing this and even do it prior to purchasing a home just so you can know exactly what you're going to be taxed.

00:21:50:21 - 00:22:10:11

Joe Reitzug

There are some benefits to owning property, investment properties, and different things that you can do, but it is absolutely the best idea to get someone that's a professional that knows how to structure or something. And that goes for whether to put together an LLC or how you're going to position this in your personal taxes or all of that.

00:22:10:11 - 00:22:24:12

Joe Reitzug

So it makes sense. It's worth the time. It's worth the money. A lot of people look at it up front like, you know, it's the same thing as property management. Well, I don't want to have that cost. And with a CPA, I don't really want to have that. It's not going to pan out for me if I have all this overhead cost.

00:22:24:14 - 00:22:54:19

Joe Reitzug

Well. It can also be a real huge pain in the butt down the road. If you're stuck dealing with, you know, a tenant who you weren't aware of their rights or a tax bill that you weren't an understanding how that would look. And the IRS has a lot of questions. Sometimes it's better to just spend the money and, and try to make sure that you build that into your strategy and your investment to, to make it work for you, because it can go horribly wrong.

00:22:54:21 - 00:23:22:05

Joe Reitzug

That being said, real estate is the number one way that people build wealth, so a lot of people are doing it. You can do it if it's really something you want to do. The other thing I wanted to add, McKayla, is we have a lot of great resources for analyzing certain areas, whether it be by area, cap rates, vacancy rates, what markets are going up appreciation wise around town, what areas are really struggling, which ones are probably going to have price decreases.

00:23:22:06 - 00:23:45:12

Joe Reitzug

So we can help you understand a marketplace and understand where your best Buy will probably be. And also someone comes. We've had a lot of people come to us and just say, hey, what do you think about this area right here? What what am I going to be seeing in the next 3 to 5 years here? We can give you a little analysis to show what that might look like moving forward, so that you can make a good decision on your investment.

00:23:45:14 - 00:24:02:05

Makayla Mast

Exactly. This is an extremely dense topic. It's hard to hit it all in one podcast, so don't hesitate to reach out if we can do any research for you. And hopefully this wasn't discouraging, but, that's why we're called off the record. We give the unvarnished insights, right?

00:24:02:07 - 00:24:20:01

Joe Reitzug

And remember, it doesn't cost anything to pick up the phone, call your lender, call your CPA, call your real estate professional, and just ask questions. And, we have people call us all the time with, you know, thoughts and ideas about what they're thinking about doing. And we're happy to give help where we can. And we always do.

00:24:20:06 - 00:24:24:18

Makayla Mast

So that's why we're here. Yeah. Thanks for listening. Do you have anything else to add?

00:24:24:20 - 00:24:47:22

Joe Reitzug

I don't think so. I think this was a great topic and like you said, it's a dense a lot of information, a lot of numbers. We might dive into some of these things a little bit more closely in the future here. But if you have anything, any topics or anything around this that you'd like to, for us to, to really focus on, feel free to go to our website live portland.com live portland.com.

00:24:48:00 - 00:24:50:01

Joe Reitzug

And let us know what your thoughts are.

00:24:50:03 - 00:24:51:07

Makayla Mast

So please do. All right.

00:24:51:12 - 00:24:54:11

Joe Reitzug

Thanks everyone. Bye bye.

00:24:54:13 - 00:38:42:14

Makayla Mast

Thanks for joining us today. If you're interested in finding out more about Joe, myself or the live Portland team, you can go to live portland.com. Thanks for giving us a listen and see you next time on the Off the Record podcast.

00:38:42:16 - 00:38:46:19

Makayla Mast

That, What is that called? Sorry. I'm having a brain fart emergency.