Buying investment property in Vancuver area (Vancouver, Camas: real estate, renters, houses)

[Maria Villa]

This is my first time blogging ever. I am interested in knowing some basics on living in the Vancuver area. What real estate agents say about it sounds too good to be true. How long is the commute from the communities north of Vancuver ( Woodland for example) to Vancuver itself and Portland? Are people willing to live north of Vancouver to have cheaper housing?
I appreciate any insight. Thanks

[diggitydot]

Originally Posted by Maria Villa

This is my first time blogging ever. I am interested in knowing some basics on living in the Vancuver area. What real estate agents say about it sounds too good to be true. How long is the commute from the communities north of Vancuver ( Woodland for example) to Vancuver itself and Portland? Are people willing to live north of Vancouver to have cheaper housing?
I appreciate any insight. Thanks

I'm not sure what you've been told by any real estate agents, but Vancouver is a pretty decent little city.

Commute times will vary depending on the time of day and into which side of Vancouver or Portland you're trying to get to. (Driving into downtown Portland on the west side can be stop and go all the way from Hazel Dell into downtown during morning rush hour.) East side of Vancouver and Portland have more/better freeways, but during rush hour times it too can become pretty nasty.

But traffic is relative to what you're used to. If you're from LA or another large metro area with some serious traffic woes, Portland or Vancouver traffic won't even register to you. If someone isn't able to drive at least the speed limit in those areas, they consider that bad traffic.

A commute from Woodland to Vancouver shouldn't be too bad. (Maybe a half hour to an hour, depending on which part of Vancouver you're heading towards and at what times. It can sometimes take 30-45 minutes just to go from one side of Vancouver to the other.) From Woodland into Portland can be a bit much. But again, that kind of depends on time of day and which part of Portland.

And yes, people definitely live outside of Vancouver to take advantage of the lower housing costs. Battle Ground, Camas, Washougal, Ridgefield, and Woodland seem to be particular favorites for this. All of which have some great areas and are nice smaller towns.

What are you hearing from real estate agents that you're doubting? Maybe we can help give to clarity to those comments.

[Maria Villa]

I appreciate your comments. My agent told me that from Woodland to downtown Portland it could take me 25 minutes. I saw my Atlas map and it did not make sense. He is offering this "unique" opportunity of houses next to a river, in a gated community. According to him, once the houses are built, in six months they will double their price. Still I do not see why this would be except for the "uniqueness" of the deal. This is why I want to hear from real people who live around this area.
Thanks

[StealthRabbit]

Originally Posted by Maria Villa

My agent told me that from Woodland to downtown Portland it could take me 25 minutes.

best case would be 35 min (Sunday morning commute, 90% - non-churched area) Woodland is 25 Mi from C. River, Downtown Portland is 5 miles south of river

Originally Posted by Maria Villa

...According to him, once the houses are built, in six months they will double their price. Still I do not see why this would be except for the "uniqueness" of the deal. ...

a bit aggressive... must be a salesperson
in some cases yes, most no. If you build your own home (for $50/sf) and it is in Cowlitz county then possible. If you get on the wrong side of the river (Clark County) + you have a home custom built ($200+/sf) Then no...

Folks are fleeing Clark County as it is a real pain (permitting, taxes, fees, future taxes for light rail + infrastructure) so Woodland has some draw (Most is in Cowlitz County (designated 'distressed')) but the bargains were about 5-10 yrs ago, it is really tough today. I (as well as most other RE investors I know) have just sold most my investment props, and will wait to rebuy during a more opportune time (and it won't be a high $$ spec house on a river ) + current 15% taxes might be the bargain of the 21st century.

good luck

[diggitydot]

Originally Posted by Maria Villa

I appreciate your comments. My agent told me that from Woodland to downtown Portland it could take me 25 minutes. I saw my Atlas map and it did not make sense. He is offering this "unique" opportunity of houses next to a river, in a gated community. According to him, once the houses are built, in six months they will double their price. Still I do not see why this would be except for the "uniqueness" of the deal. This is why I want to hear from real people who live around this area.
Thanks

I would venture to guess that your agent isn't from the area. Either that, or they're enjoying too much of the hippie lettuce.

No way you'll EVER see a 25 minute commute into downtown Portland from Woodland, no matter what time of day or which day. Heck, when I lived near Vancouver Mall it took me 20 minutes just to get to Swan Island at 6:30AM. You're agent is either lying to you or exceedingly ignorant. Either way, I'd find a different agent.

Woodland is a great little town, though. Don't let a weird experience with a goofy agent color your views on the community. There are a lot of great little towns outside Vancouver.

[Tony1790]

Originally Posted by janb

best case would be 35 min (Sunday morning commute, 90% - non-churched area) Woodland is 25 Mi from C. River, Downtown Portland is 5 miles south of river



a bit aggressive... must be a salesperson
in some cases yes, most no. If you build your own home (for $50/sf) and it is in Cowlitz county then possible. If you get on the wrong side of the river (Clark County) + you have a home custom built ($200+/sf) Then no...

Folks are fleeing Clark County as it is a real pain (permitting, taxes, fees, future taxes for light rail + infrastructure) so Woodland has some draw (Most is in Cowlitz County (designated 'distressed')) but the bargains were about 5-10 yrs ago, it is really tough today. I (as well as most other RE investors I know) have just sold most my investment props, and will wait to rebuy during a more opportune time (and it won't be a high $$ spec house on a river ) + current 15% taxes might be the bargain of the 21st century.

good luck

Janb totally has it, I just sold all of my investment homes (12) in Port Orchard, now is not the time to be a buyer. As to ANY investment doubling, not going to happen now, 2 years ago, yeah, not now.

There will blood in the street, then it'll be time to buy again, most of the other investors that I know are pulling back and waiting with cash.

Tony

[Maria Villa]

Janb and Tony Did you sell because you were not renters or because you wanted to take advantage of the appreciation, or both?

Not sure I am using the right tools to reply....I am still learning.
Thanks

[Maria Villa]

I made a mistake in my previous message....I meant Are you seeling because there no renters.
thanks

[StealthRabbit]

Selling has just been an 'opportunistic' choice for me. Places were doing fine, and future looked good. I just put a reasonable, but higher price on them and 'poof' their gone

I'm not pessimistic on holding props, tho I feel we are approaching a 'plateau' of equity appreciation, and potentially a 'decline' if you are forced to sell in next 5 yrs. If I can capture some gains, and currently pay VERY low taxes, I would rather have the cash for more choices in the future. (might be stocks, REIT's, TIC's... or 'bargain' props in the path of growth) For now the cash goes into my brokerage account where I can write 'margin' checks at will. (It is my desire to avoid banks, until I have a cash flowing property that they will be desirous of funding)

Renter market has been fine,

I don't typically do residential, and only rural residential (so I'm not in competition with a zillion urban homes when / if I HAVE to sell). I still have one (I only keep stuff with intrinsic value), View, unique, and EZ commute and access (no gravel roads / remote places can become 'Hemp grow' or 'meth brew' houses)).... Commercial triple net, (NNN) is SO much better (when it is rented ) The tenants HAVE to pay rent and take care of the place if they want to run their business + you can have them out in a flash. Plus commercial is often cheaper and ez'r to find 'depressed' (less buyer competition). Everyone and their dog fights for the residential bargains, and I'm not sure how you cash flow residential props over $200k/ living unit. Equity appreciation is a real crap shoot. I've watched many builders struggle / fizzle though the 'spec' market. Personally, I stick with bare property for residential spec. To me building is too much of a hassle for the return, if I can get a larger % by just dealing bare props. I have equipment to de-brush and grade and spiff up a jungle (relative only on the rainy 'westside') or create a 'defensible space' site (wildfire protected homesite). I can do that in a few hours, verses the yearlong headache and expensive process of permitting and building a residence. BTDT - It isn't easy to forget the sheriff showing up to kick an over extended builder out of his home. (happened to my folks and my inlaws and several others I've known) This may become a common site in the next few years - ain't pretty.

[Tony1790]

Cash flow is the historic reason for buying residential property with appreciation as a side benefit. There is NO WAY to have real honest to goodness cash flow on a property that you are buying at $200k to $400k and turning around to rent them at $1200 to $1700 per month, not going to happen, unless you are kidding yourself.

Just as a rule of thumb, I use the 100 rule, 100 x rent = purchase price, some use the 80 x rent rule.

Example $1300 per month rent x 100 = $130,000 purchase price, not going to find even a double wide at that price.

Good luck, I'm a seller not a buyer at this point in time.

Tony