Disclaimer: This post is meant to be used for educational purposes only and does not constitute legal or financial advice. If you are considering a real estate investment in Oregon, HomeLight always recommends doing your own research to determine which investment option is best for your situation.

Investing in real estate can be a great way to earn money over time. While this type of investment won’t win you loads of cash right away, if you keep at it you can find success and hopefully invest in more properties. There are multiple strategies for real estate investing, but experts suggest that you pick one strategy and stick with it.

One great place to look for investment properties is in Oregon. “Oregon is rapidly growing and developing and there’re so many opportunities for real estate growth because we have this state-of-the-art healthcare education and then there’s the whole leisure market,” says Betsy Shand, a Portland area real estate agent with 23 years of experience.

The state is also seeing above-average population growth. Oregon’s current population growth rate is 0.89% which makes it the 22nd fastest-growing state in the country. And Shand notes that the rental demand is particularly high right now, meaning real estate in Oregon will likely see continued value increases.

We gathered intel on the top places to invest in Oregon real estate. And, we’ve also got some helpful tips to help you find the right property for you.

Choosing the right property

Investing in real estate isn’t just about finding the right location, but location does matter. A good investor understands how to evaluate all the factors in a property to determine if it will be a good investment. Real estate investors can use many different formulas to determine the potential return on investment (ROI) of a property, but ultimately every formula will look at gain minus cost. This means calculating how much you will earn versus how much you will invest into the property.

While investing in anything is always a risk, if you know how to assess an area and potential properties for their earning potential, you will be able to make a more secure investment. Here are the main factors of location that typically affect the ROI on an investment property:

• Desirable area: Location, location, location. This old adage most certainly applies to shopping for investment properties. You want to purchase a property in an area that is not only desirable now, but is predicted to be desirable in the future. Look at factors like job growth predictions and population growth projections to determine if an area is on the rise.
• A growing economy/job market: This often goes hand-in-hand with a desirable area, but a growing economy means the value of your property will likely go up over time. It also means more people moving to the area and a higher demand for real estate and rentals. On the contrary, if you research an area and find that the economy is not doing well, the value of properties may go down and it likely isn’t a good place to invest.
• Population growth: A growing population means increased demand for both rentals and real estate. Whether fix and flips or rental properties are your jam, population growth matters. You want to have a large body of people to pull from if you need to sell your property or replace a tenant.
• Average rental rates: The exact rental rate number isn’t what matters so much as how it compares to your other costs. Evaluate average rents in the area and use your investment formula to determine if that rental rate works with your formula to give you a positive ROI.
• Your experience: “We’re always looking for the right property and it goes along with the right person,” says Shand. She suggests that the best area to invest in is different for each person. You should look for the areas you are familiar with and understand. Then you can capitalize on your experience to get the best ROI.

Best cities in Oregon to invest in real estate

The Beaver State has a lot to offer when it comes to real estate. From college towns and large cities to suburbs and outdoor adventure destinations, investors have a wide variety of locations to explore in Oregon. And demand for rental properties is high throughout the state.

“We have a lot of recent graduates and professionals and people with employment and education opportunities that want to be here and it’s a young group of people,” says Shand. She adds, “And we have an older group of people who have done quite well and have a lot of equity in their property and they’re ready to go to the warmer states.”

These population changes mean the area is ripe for real estate investment potential.

Ready to dig into Oregon real estate? Check out these cities: