How to Buy Your First Investment Property in Central Oregon in 10 Easy Steps

Investing in your first property can seem daunting at first. There is so much information out there and it can be easy to get overwhelmed or fall into analysis paralysis.

But these big goals can easily be broken down into smaller, more achievable steps.

And THE most important part of any goal: TAKING ACTION.

Let’s break down this goal into some smaller steps so you can start taking meaningful actions that will get you to your goal of buying your first investment property in Bend, Oregon.

1. Decide what kind of investment you want.

Do you want to buy a triplex in Redmond? A duplex in Bend? A vacation rental in Sunriver? A second home in Sisters? A househack in Madras?

You might have a few ideas of what you want - our advice is to pick one and focus on that for your first investment. Otherwise you might miss a deal if you’re trying to look at everything.

2. Determine what is more important to you: appreciation OR cash flow.

Usually with investment properties you get one or the other. If you find a place that has potential for both, you got lucky.

3. Find an investor-friendly realtor.

You want someone who speaks investor and understands the local market from that perspective.

How do you find a realtor like that? If you know others who buy investment properties in Bend, ask them.

Go on Bigger Pockets and search for real estate investor associations for Bend.

Join the Central Oregon Investor Network and attend one of our monthly investor meetups.

We are investor friendly realtors in Bend and we can certainly help you in the process of buying your first payment investment property in Central Oregon.

4. Talk to lenders and get pre-approved.

You need that pre-approval so you’re ready to pounce when you find that right deal.

Your realtor can provide some recommendations to you based on your goals and financial situation. Make sure to meet with at least 2 lenders to compare rates and terms.

5. Start hunting for deals that match your criteria

Now that you’ve got a good investment realtor and lender partner, the search begins! Your criteria will determine what kinds of deals you’ll consider- appreciation or cash flow, desired type of investment.

6. Analyze deals. Lots of them.

Get comfortable with numbers and spreadsheets and know what metrics are important for your desired goal.

Don’t know where to start on that piece? Then make sure your realtor does because any good investment-focused realtor should be doing this analysis in partnership with you. If they’re not, then find someone who does.

7. Make offers.

You might analyze 20 deals before you make your first offer. That’s okay, investing is a numbers game.

And remember: it doesn’t cost you anything to make an offer.

So get comfortable asking for what you want, making offers that meet your goals.

Keep searching for and analyzing deals. There are deals to be found in EVERY market.

Keep making offers, counter offers, and more offers. You WILL get a deal accepted.

8. Due diligence.

Once you have an accepted offer, it’s time to start your due diligence.

Analyze your numbers again using any new info you get during this process - things like actual utility costs, HOA fees, taxes and projected increases, historical rents if available, renovation and property management estimates. Any new info you get should be plugged into your spreadsheet and re-analyzed.

Do your inspections, review results with your Realtor and decide whether to proceed with the deal.

9. Build out your team

At this point, you want to make sure you have your broader team in place so you are ready to go once your deal closes.

Teammates like:

a contractor who will be ready to do renovations or upgrades

a property manager so you can get your listing posted as soon as it’s rent-ready

an accountant or tax preparer who can help you set up your investment in a way that maximizes your tax advantages

If you don’t yet have these people in place, ask your realtor for recommendations. Any investor-focused realtor will have multiple options for you.

10. Close the deal.

You’ll sign a stack of papers about 2 inches thick and get a free pen from the escrow company. That pen is for you to write down your next real estate investing goal.

11. After closing

At this point your next steps depend on what kind of property you bought, the condition it’s in, whether you plan to manage it yourself or hire that out. And your investor-friendly realtor should be there with you, supporting you through every step.

Taking that first step is the most crucial part. We can help you with the rest.