Right now we’re going to discuss income properties.
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Marcia Edwards: Let’s talk a little bit about your wheelhouse, Bob. Let’s talk about income properties. It seems that this is the time to take a look and see what those opportunities are that are out there.
Bob Nelson: Well, it’s interesting. I just spent the last week in Scottsdale, Arizona. I had to take 30 hours of continuing education taught by mainly attorneys to maintain my license, but I had plenty of time to study the market. I studied the income market. What are the cap rates? What seem to be the opportunities? What’s the change in tide that’s influencing ownership of residential income property?
Marcia Edwards: So are you talking about Arizona now?
Bob Nelson: Yep, I’m talking about Phoenix. I hit Phoenix, Scottsdale, Santa Fe. I also studied Flagstaff and Prescott.
Marcia Edwards: Okay, so if you want to go to a warmer climate with your investment, call Bob, who’s the-
Bob Nelson: Talk warmer climate! It was 101 degrees at midnight the night before I left. At night. That’s at night.
Marcia Edwards: That’s a bit much. Bit much for this Oregonian.
Let’s talk about what you’re looking at when you’re saying there’s opportunities. I know that money’s cheap, so interest rates must have an appeal.
Bob Nelson: Well, it’s interesting, because the interest rates are pretty much the same across the country. I watch closely the Boise market, I watch closely several markets in Arizona, and a couple of markets in the Washington area, and then certainly I’m watching the Willamette Valley primarily in Oregon, so a lot to cover. But I’m watching for opportunities. Where can I get a decent return without very much risk or at least as much risk as would exist in other regions? That’s what I’m really looking for: sweet spot investment opportunities.
Marcia Edwards: Are you seeing within our state a move away from residential investing and going into more commercial or medical buildings, or some alternative to these landlord tenant laws we’re seeing?
Bob Nelson: Yes.
Marcia Edwards: It’s changing?
Bob Nelson: In a word, if that was an adequate response. Very much so.
Now, frankly, the people who got hurt the most are the mom and pop owners, not the big investors that own 500 units, 2,000 units, 5,000 units. They can stand the current tenant protection act and rent restrictions and so forth. It’s the mom and pop that owns a duplex, a 10-plex, a 20-plex that’s over 15 years. Those are the ones that are hurting and they’re the ones that are moving around a bit.
Marcia Edwards: More on investing next program.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.