Welcome Back,

Hi there, I hope you had an amazing week and these first few days of the New Year are treating you great. Today we are back again to talk about another real estate market and diving into some pros and cons about it. Enjoy!

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Disclaimer: The content of this newsletter is for informational and educational purposes only and does not constitute financial, investment, real estate, legal, or business advice. All opinions expressed are those of the editors and contributors and are provided solely for general guidance. Any decisions based on the information provided herein are made at your own risk. Always consult with a qualified professional before making financial, investment, or real estate decisions.

Real Estate Investing

Market Snapshot:

The Eugene real estate market is experiencing steady growth, driven by the city's scenic appeal, thriving education sector, and increasing interest from out-of-state buyers. The median home price in Eugene currently stands at $519,000, marking a 2.8% increase year-over-year. Low inventory levels, with just 750 active listings in the area, are fueling competitive bidding, particularly for single-family homes. With the University of Oregon drawing students and staff, rental properties also remain in high demand. However, rising interest rates are cooling the market slightly, offering opportunities for patient investors.

Median Home Price: $519,000
YoY Price Growth: 2.8%
Active Listings: 750 (down 4.5% from last year)

Deal Of The Day:

Single-Family Near the University of Oregon
Price: $650,000
Units: 1 (3-Bed, 2-Bath each)
Monthly Rental Income: $2,500
Cap Rate: 5.1%

This well-maintained Single-Family home is located within walking distance of the University of Oregon campus, making it ideal for student renters. With a total annual rental income of $30,000, this property offers a decent 5.1% cap rate, even amid rising borrowing costs. The growing demand for off-campus housing in Eugene ensures consistent occupancy rates, making this a compelling opportunity for investors.

Deal Rating: 5/10

Shows great potential for keeping the property rented and shows limited vacancy, with that said there is little signs of overall property value growth and the properties rental income is significantly below the expenses of this property.

Real Estate Tip:

Investment Strategy:

Buy and Hold for College Rentals
Investing in properties near universities, like the University of Oregon, can yield steady rental income. By targeting students and faculty, you benefit from built-in demand. To enhance profitability:

1. Offer fully furnished units to justify premium rents.

2. Provide short-term leases to align with academic schedules.
   For instance, a property purchased for $400,000 with a monthly rental income of $2,800 can achieve a 7% return within the first year, excluding appreciation.

Current Interest Rates:

30-Year Fixed Residential: 7.1%

15-Year Fixed Residential: 6.4%

Commercial Rates: Starting at 6.7%

Interest rates in Eugene have edged slightly higher, with the average 30-year fixed residential mortgage now at 7.1%, reflecting national trends. Commercial rates are hovering at 6.7%, making multifamily properties a cost-effective option for investors looking to capitalize on the rental market.

How to Profit from Rent Control Policies

Rent control laws are spreading across cities nationwide, but savvy investors can adapt to these regulations to maintain profitability. Here are three ways to navigate rent control environments:

1. Focus on Newer Properties: Many rent control laws exempt properties built after a certain date, such as post-2000 units in Oregon.

2. Diversify Income Sources: Add amenities like parking spaces or storage units to generate supplementary income.

3. Negotiate with Tenants: Offer upgrades or additional services in exchange for reasonable rent increases within legal limits.

Understanding the nuances of rent control can make the difference between stagnant returns and thriving investment portfolios.

Economic Conditions

Eugene’s economy is anchored by the University of Oregon, healthcare, and outdoor recreation industries. The city boasts an unemployment rate of 3.9%, slightly below the national average. Rising construction costs, up 4.9% year-over-year, have tightened housing inventory, while steady migration from urban centers like Portland and Seattle continues to drive demand. These factors create both challenges and opportunities for real estate investors seeking value in a competitive market.

Market Rating: 6/10

This market has a steady unemployment rate but the inflation rate and overall economy in this area is high as a few years ago Eugene saw a significant 20% inflation rate. Majority of the area has seen it’s major growth and doesn’t show much appreciation in the upcoming years.

Key Takeaways:

• Eugene Market Update: Median home price $519,000, up 2.8% YoY.

• Deal of the Day: $650,000 singe-family house near University of Oregon, 5.1% cap rate.

• Tip: Zoning laws can unlock untapped property potential.

• Investment Strategy: Buy and hold near universities for steady rental income.

• Interest Rates: Residential rates at 7.1%, commercial rates at 6.7%.

• Economic Impact: Eugene's steady job market and low unemployment create investment stability.

That’s All For Today

I hope you enjoyed today’s issue. If you have any questions regarding today’s issue or future issues feel free to ask. Come back tomorrow for information on how to grow your income and wealth. I hope to see you.

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Disclaimer: This newsletter is for informational and educational purposes only and reflects the opinions of its editors and contributors. The content provided, including but not limited to real estate tips, stock market insights, business marketing strategies, and startup advice, is shared for general guidance and does not constitute financial, investment, real estate, legal, or business advice. We do not guarantee the accuracy, completeness, or reliability of any information provided. Past performance is not indicative of future results. All investment, real estate, and business decisions involve inherent risks, and readers are encouraged to perform their own due diligence and consult with qualified professionals before taking any action. This newsletter does not establish a fiduciary, advisory, or professional relationship between the publishers and readers.