What’s a good real estate investment?  Depends upon who’s doing the talking.  It never ceases to amaze me how many Realtors comment on what great cash flow their particular listing is producing.  I’m convinced many are not investors.

Here are 3 factors to consider when evaluating overall return on investment:

1. Look at the surrounding area. Portland Oregon has many neighborhoods and surrounding cities like Beaverton, Tigard, Hillsboro, and Lake Oswego.  Within each city are well-regarded and not so well-regarded locations.  This can be seen by driving a couple city blocks in one direction.  How does the subject area compare?

Real estate investing should be viewed as a long term event, more than 3 years.  Google.maps.com has an awesome tool for helping evaluate neighborhood condition from your desktop.  Use the “street view” button to pan up and down the street taking not of vehicle and yard conditions as well as house curb appeal.  Look at aerial views to get an idea too.  More trashed and dead looking vehicles may mean that community involvement is seriously lacking.  A sign of real estate future values.

2. Look for upside potential through remodeling. Buy the worst house in the nicest neighborhood.  We’ve heard that one before.  Beaverton and Hillsboro offer some of the most cost effective real estate investment for single family homes.  When looking for future returns think about what can be done through simple upgrade.

Take a 1970′s original house in Beaverton.  With current Portland real estate prices it’s ease to pick up a great deal around the $200k price point.  This will be a three bedroom 2 bath ranch style house on a 7000′ lot.  Very easy to update and with a little sweat equity can be done well for $10k.  Upside potential for rent is now there as well as resale.  A wise use of $10k.

3. Evaluate cash flow. Much of newer construction and higher density housing is subject to HOA fees.  Property management, repairs, maintainence, vacancy are key factors to consider.  In the above example we refer to Portland investment property, specifically Beaverton.  There’s a good balance of cash flow here, possibly more so in Hillsboro.  House prices are becoming more attractive all the time in many neighborhoods.

Single family nvestment homes provide a minimum amount of expense after remodel.  There’s not much to break, also one of the benefits of purchasing newer homes.  Tenants pay for all utilities.  I also mention in my website additional tips on having tenants take care of small repair, this minimizes cash loss.  If possible, manage property yourself.  Management fees will run 7% every month.

There are a ton of good informational tips on my site www.MaxwellSinclair.com.  Please feel free to call and discuss investment ideas and tips of your own.  David Somerville 503 789-7633

Lake Oswego offers several different neighborhoods to choose from when searching homes for sale.  Prestigious as the area is downtown still maintains a small town feel.  Walking the First Addition neighborhood and surrounding shops is warm and inviting.  Homes in this area range from early 1900′s Tudor style to 2008 constructed townhomes. Prices will remain well above Portland’s average though fall below Dunthorpe’s high-end price tags.  With land at a premium in First Addition it stands to reason that other areas within the city will have something to offer a bit further away.

Lake Grove an up and coming area neighborhood in Lake Oswego. A lot of Lake Oswego’s closer in areas have undergone development over the last 10 years. Being one of the most desirable areas to live in the Portland metro area, large remodel projects are common. Lake Grove is southeast of city center and still allows in-fill type construction. Newer homes perched within the confines of generally 1960′s models.

Not uncommon for lots to be fetching nearly $300 by the time infrastructure is in place. Ranging on the higher side of Portland’s average size they’re often 7500 square feet. It’ll be rather difficult to secure a newly completed home under $600k. For this price you’ll be looking at approximately 2400 ft. of living space. Many of these homes are designed on one level. Catering to a broad range of occupant situations they’re ideal for buyers who are done with stairs.

Feeding into top performing schools further drives attraction to the Lake Grove community. Prices have a fairly broad range from $300 to slightly under $1m. Close enough to I-5 convenience and Lake Oswego’s First Addition/downtown areas. Bridgeport Village, on of Portland’s newest shopping districts, is within a 5 minute drive. Several restaurants are also available.

Lake Grove is part of unincorporated Lake Oswego. Sewer hookup is often not available and therefore each individual homeowner is on a separate septic system. Water is supplied from the city. With city water comes privileges of using swim easements on the lake. Certain lots also have boating easements as well. Boat easements run with the land and are not transferable. This allows launching of boats on the lake that would not be permitted otherwise. Verification of home address will be required for use of several public swim beaches.

Just north of the River Grove area, Lake Grove is starting to show it’s desireability. As we work through these economic slow times currently development will continue and most likely prove to be a good investment. Buying Lake Oswego houses in any time in the remainder of 2008 should prove to be an overall great housing investment.  Continuation of sliding home prices will stop.  With this area of Portland’s upper end neighborhoods and top performing schools it’s unlikely to be getting much more affordable than the present.

Search our site for Portland MLS homes for sale at www.MaxwellSinclair.com.

Questions about Lake Oswego homes for sale or neighborhoods?  Just ask.  We’re happy to help!