The Portland metro housing market is experiencing a moment of remarkable growth, and for some potential homebuyers, this competitive real estate environment may prove to be less than attractive. However, there are many smart investments new homebuyers can make, even in a crowded market. In fact, these three tips can help novice homebuyers make the best decisions when purchasing a home.
Avoid Red Flags
Look for investments that are low risk. All real estate is risky in one way or the other, but what should be on your radar are properties that have a tenant in common (TIC), are classified as fixer-uppers, or are in neighborhoods you find questionable. Utilize all your tools like walk-throughs and tours, inspections, and due diligence to ensure the property that catches your fancy won’t end up a money pit down the road.
Quicker Fixer Uppers
If fixer-uppers aren’t a deal breaker for you, look for renovation ready homes that can be flipped in less than a few months. Anything longer than that and you’re looking at a loss on your investment.
Look for properties that pay a fair cash-on-cash return. If your liquid assets see a 4 percent or 6 percent return, you should expect the same cash-on-cash rate of return on your real estate.
Stonebridge Mortgage Group can help you with your Reverse Mortgage, Real Estate Loan, and many other mortgage solutions. We serve the greater Portland area and are located in Gresham, Oregon. Call us today at 503.661.5580.