Moving to Bend, OR (Terrebonne: foreclosures, rentals, month to)
BendDeschutes County
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I know nothing about you, kapetrich, but it sounds like you are speculating, planning on "flipping" the house. Is this accurate? House flipping in a declining market is extremely risky, and foolish unless one has deep, deep pockets. In fact, remodeling is historically a money losing endeavor. You can only expect to get back pennies on the dollar for your work.
If you are not flipping, and actually planning on living in the house, do you already have a job lined up? From what I hear, the Bend job market is absolutely dreadful. Due to this fact, it seems that housing there will be dead for years. Real estate, unlike other assets, is not liquid, and your money might very well be "locked up" for decades.
It is true, I am looking for an investment, but by no means am I buying to "flip" the house. I plan to live in Bend for a long time to come.
That said, the housing market in Bend is extremely desirable with an amazing potential upside and something that I am interested in making a long term (10-15 years) investment and eventual return on. This plan ties together two passions; the desire to invest and the desire to move to my dream location. So, no, I'd say I am not your standard "investor"........
As for the job, I have not yet found employment. I have just started looking. Although, I have two friends who will be joining me and my initial plan is to collect rent and nail down a part time job until the market picks up. I am very worried about my friends. I've heard HORROR stories about the job market........
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Thanks so much for the information so far! Also, thanks to all who have PMd me. Am already loving the Pacific North Wests attitude! A few questions:
1) Why are most of the houses I've found lay in the north-east of town? Remember I'm looking for a house with some land. (is the south-west much more desirable/more money there?; has the city of Bend developed the south-west differently, more compact?; has the city of Bend restricted development in the north-east?)
2) Most of the *best* (very relative) deals can be found next to or very close in proximity to the airport. Is this due to the noisiness and standard pain it is to live near an airport?
3) I plan to figure this out in-depth on my visit, but I've read that the climate is very different on each end of town? How different are we talking? Anyone with some experience?
If you're looking to "invest" in real estate, I would recommend a duplex or triplex. Single family homes are not good investments. What happened the past decade is completely abnormal, and that sort of price appreciation will not be returning. If you have $150k-$300k cash (I'm assuming it's cash because I don't how you could qualify for a loan without proof of employment), I'd be putting it to work on a property with a high cap rate. Just my two cents.
One more thing to consider is that finding renters in a locale with few jobs is a tall task. One month of vacancy on a single family home will put you in the red for the entire year, and that doesn't even include maintenance. I don't see anything "amazing" at all about the Bend housing market, unless we're talking about the spectacular nature of the crash in prices. There is so much overbuilding, with little industry, that it may be decades before things work themselves out. Another spike in fuel prices certainly isn't something that will bode well for the area, either.
If you're looking to "invest" in real estate, I would recommend a duplex or triplex. Single family homes are not good investments. What happened the past decade is completely abnormal, and that sort of price appreciation will not be returning. If you have $150k-$300k cash (I'm assuming it's cash because I don't how you could qualify for a loan without proof of employment), I'd be putting it to work on a property with a high cap rate. Just my two cents.
One more thing to consider is that finding renters in a locale with few jobs is a tall task. One month of vacancy on a single family home will put you in the red for the entire year, and that doesn't even include maintenance. I don't see anything "amazing" at all about the Bend housing market, unless we're talking about the spectacular nature of the crash in prices. There is so much overbuilding, with little industry, that it may be decades before things work themselves out. Another spike in fuel prices certainly isn't something that will bode well for the area, either.
I'll definitely take the suggestions into consideration, NomadicBear.
The duplex/triplex idea isn't really what I am looking for, to be perfectly honest.
I am first and foremost looking to move to Bend to live in Bend. If I happen to buy a home and the price of the property rises (which it enviably will unless you subscribe to the belief that the USA is in for a swift economic collapse [not just a slow squeeze which is much more likely]) then there is almost no way there could be a bad investment if one has the capital in an area like this. If you disagree, thats perfectly rational. Buying property can be sticky business, this is why I'm not much in the business of buying properties to turn a quick buck.
That said, the housing market in Bend is extremely desirable with an amazing potential upside and something that I am interested in making a long term (10-15 years) investment and eventual return on.
Do you also believe in the tooth fairy?
Bend is a desirable location but the housing market is unlikely to represent "amazing upside" potential because there is nothing to fuel growth.
Here are some factors:
1. Bend's housing boom was fueled by people taking equity out of California. That equity has gone "poof" so there's nothing to bring to Bend.
2. Because of #1, the construction industry and the associated business have dried up.
3. Bend does not have a strong/diverse economic base or the infrastructure for job growth. That will keep housing demand surpressed.
4. Tourism will remain cyclical depending on disposable income levels and transportation costs.
I'm sure Bend will turnaround somewhat but I'd predict years of stagnation and then some very modest growth.
On average, housing has not represented any gain over the past 10 years. You best bet is probably low end/multi unit fixer upper rentals as long as they throw off positive cash flow.
You aren't going to be able to get a loan on a house without a job. They won't accept you renting out rooms. You have to be able to carry the mortgage yourself. Just FYI.
Lenders will require one year of rental/house payment receipts, sources of credit (ie credit card, car payments, school loan payments, etc), and one year at a job. Relocation is fine if you have been working full time where you are. If you have a gap in employment they may require one year at your current position in Bend.
I think you have the cart before the horse. Get a job first, rent a place out here, then you can get a loan for a house...unless you have cash, then my comments are irrelevant.
You aren't going to be able to get a loan on a house without a job. They won't accept you renting out rooms. You have to be able to carry the mortgage yourself. Just FYI.
Lenders will require one year of rental/house payment receipts, sources of credit (ie credit card, car payments, school loan payments, etc), and one year at a job. Relocation is fine if you have been working full time where you are. If you have a gap in employment they may require one year at your current position in Bend.
I think you have the cart before the horse. Get a job first, rent a place out here, then you can get a loan for a house...unless you have cash, then my comments are irrelevant.
I must not be making myself clear: I have the capital. Therefor will not be needing a loan of any kind. This is the main reason the area, to me, is extremely desirable to live, debt free, with a sizable (10-15 year) investment. Maybe it's my use of the word investment that's throwing you off. I look at any purchase, whether it be a winter coat or a house, as an investment. Monetary or personal investment. As I said earlier I'm not your regular "investor".
I must not be making myself clear: I have the capital. Therefor will not be needing a loan of any kind. This is the main reason the area, to me, is extremely desirable to live, debt free, with a sizable (10-15 year) investment. Maybe it's my use of the word investment that's throwing you off. I look at any purchase, whether it be a winter coat or a house, as an investment. Monetary or personal investment. As I said earlier I'm not your regular "investor".
The term investment wasn't throwing me off. I've just never met a 24 year old with $300,000 in cash.
LOL, Karl - I love Spanish Inquisition references. Perhaps if Kapetrich hasn't fled the thread already we can introduce him to....the comfy chair. That will make him talk.
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