Updates for Southern Oregon Landlords March 2021

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Alice's Analysis_ March 2021 Updates for Southern Oregon Landlords

Well, good morning. Real estate fans, Alice Lema here, broker John L. Scott, here in Southern Oregon. And today we're talking about land lording and tenants in Southern Oregon. So it's very interesting. Now the market we have, the COVID is wrapping up well, Or at least we're opening up a little bit. So the restrictions are in the process of being lifted.

[00:00:29] But what we're left with is a real shortage of rental properties. On top of the COVID situation, we had our fires here in Southern Oregon, um, last fall. And so it creates an interesting opportunity. And then to top it off, there's a lot of landlords that are redoing their portfolios, selling their properties using 10 31 into something else.

10 31 is a legal way of moving your investment money around into another investment vehicle. We'll talk about that another time, but there's a lot of properties being sold that have tenants in them. So I just wanted to reach out. And kind of let people know what the opportunities are because it's actually a great time to be a landlord.

[00:01:12] The rents are pretty high. Ther’e stable. There's a lot of really good tenants out there. And because it's supply and demand, you really do have, you know, the best of the best, supplying for your building. So one of the things I wanted to mention is, we're standing in front of an older home. That's all been redone, but it's really quite large.

[00:01:31] It has, two separate exits. And could, easily be divided into a duplex or triplex and quite frankly, the state of Oregon and the city of Medford encourage that right now because of the housing shortage. In fact, the city of Medford has already relaxed some of their setbacks. They're making it easier for you to turn big, square footage properties into smaller units without adding on.

[00:01:58] And so this is a very economical way of creating more. Creating good housing dwellings for, for tenants. And also, I don't know if people are aware, you can get construction loans for this kind of work. You can also get rehabilitation loans. So that's something we should talk about as time goes on.

[00:02:20] A lot of those are owner occupied, so you might have to live in one unit, but the point is that there are ways to get this done without you having to bleed money, unless you want to. You know, there's always good reason to pay cash. So, with the new, environment, if you will, market opportunity, some of that is being, pushed by the rent control laws, which were put in place a couple of years ago.

[00:02:47] And now we're a little more used to the rules. We kind of know what to expect. But that has also kind of put pressure on the tenant population, which again, creates opportunity for a landlord. And you know, it doesn't hurt to be a good landlord. We sure need more. Yeah. So I just want to leave you with a couple of ideas that it's a great time to be a landlord, because I think it's very profitable, especially with the low interest rates.

[00:03:12] You know, we just had an investor buy a multifamily property, with 20% down because they did not want to live there. It's less, if you are willing to live in one of the units, but they did 20% down and they got 3.2% interest with a fixed 30 year loan. So their profitability is instantaneous.

And you know, I don't know if, [00:03:33] If any of you remember back before the crash, you didn't have that kind of cash flow. When you bought a property, you had to feed it. You had to write checks every month, waiting for the market to go up so that you had profits. So now it's pretty easy to have profitability day one. Because we don't have enough, rental properties available here in Southern Oregon.

[00:03:56] So, just think about it, because the supply is so low. That's what creates opportunity. If you have any questions or you want to do some rates of return or talk about different areas in the Valley, give me a call. Give me a call or  text (541) 301-7980. Alice Lema broker, John L. Scott, have a great day.