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👁🗨 Sesemi STR Hot Sheet | 📲 STR Mortgages
The barrier to entry for owning Oregon Coast vacation rentals continues to rise, creating window of investment opportunity.
Dear Open Sesemi STReet reader,
Welcome to a fresh edition of vacation rental and multi family investment insight for the Oregon Coast. This week we’ll summarize STR permissible areas (as well as those that have recently instituted CAP’s or maximum allowable active vacation rentals) and as always HOT STR and investment prospects. Our top headlines this week:
Rockaway Beach OR, a historically reliable area for STR permissions and permits instituted a CAP of 400ish active STR’s. There are currently 500+ Active rentals. Actively licensed properties licenses can transfer, but unlicensed properties must join a waitlist.
Vacation Rental demand is up over 10% year over year according to AirDNA
Mortgage rates hold steady at near 7% we recently utilized a seller concession of 2% towards an interest rate buy down for a client on the Southern Oregon Coast.
Buyers see more seller negotiability on price and incentives on purchases. All $3M of Q1 Sales sold below list and/or included seller concessions.
Gold rises and inflation persists. Gold hit consecutive ATH’s of near $2300/oz and commodities have risen in the first 3 months of the year. Oil is approaching $90/barrel as of publication and interest rate cuts are looking less likely, or at a minimum, less aggressive for 2024. We argue that if inflation re-accelerates prime investment real estate will see increased demand from a flight to safety and/or profit taking from equity positions.
If you missed it, we moved our STR HOT sheet to an easy online and invite only website: SESEMI SHEET for convenient shopping and scrolling. Text us for the cheat code!
💡 The Top Three Tricks to a lucrative vacation rental
We’ve developed, furnished, launched, managed and sold over 20 OR STR’s in the past five years. Here are our top three tricks to a profitable and enjoyable investment.
Create a second home that you share with guests and extended family. Turning a house into a vacation HOME is hard but rewarding work. The most successful hosts create a space that is theirs and shared (usually for a fee.) This is a good theme to keep while deciding where, how and when to invest in your second/investment home. Being where you want to be is a good reason for others to visit and catering to those that are like minded, or with similar styles and interests is a proven way to attract guests and welcome them. Small touches such as great guest books and recreational amenities are well worth the attention and investment.
Furniture, decor and design matter. At least on the Oregon Coast, a large part of the vacation rentals are either not focal portfolio investments or properties that have been owned for a long time and converted to that usage. Part of the opportunity consists in there not being a lot of updated or well appointed and modernized accommodations available. Prime hotels often refresh their looks frequently, or get it right the first time. It doesn’t have to be professionally designed, but consistent and aesthetic themes or textures often equal increased profile views and bookings.
Vacation rental owner/operator equals being in the hospitality business. Marketing and managing STR’s can be more demanding than conventional landlordship and since responsibilities are expanded, so are the possibilities of what can go wrong or demand attention. Utilities, internet, water are in the owner/operators name as is getting the space clean and ready for occupancy. The most essential ingredient is often finding and building a team that cares for your guests’ experience as much as you do. Craigslist has been an excellent resource for job postings. There are a lot of experienced cleaners and managers, just be sure to ask for references.
⏳ Update on OR Cities and Counties STR Permit Rules and Regulations
An all too brief overview of STR rules on the Oregon Coast for investors to consider. For deeper insight visit our direct website HERE.
Brookings - R16 eligible outright.
Gold Beach - Within city limits is restricted except for zones or commercial. County areas are possible.
Port Orford - Not accepting new applications.
Bandon - Specific zone on the west side of town. Subject to density restrictions. Outside of city limits is possible.
Florence - Proposal for regulation but currently no restrictions within city limits.
Yachats/Depoe Bay - Within city limits is restricted due to CAP’s except for commercial zoning. Outside of city limits the county is also not accepting applications.
Waldport - Within city limits STR’s are permitted outright. County within the surrounding areas are CAPPED.
Newport - There are roughly 60 persons on a waitlist. Commercial ok.
Lincoln City - Within city limits generally at CAP with the exception of Costal zoning, Olivia Beach (VRD outright) and Road’s End (actively licensed STR’s can transfer 1 time to new owner until November.)
Rockaway Beach - New CAP of 400+ allowable rentals and 500+ active. Licensed rentals can transfer to the new owner.
Bay City - Several permit slots available. Must not be active rental within certain distance.
Pacific City - Generally at CAP. There are certain areas where actively licensed STR’s the permit will transfer one time to the new owner.
Cloverdale - Actively permitted properties can transfer.
Seaside - Based on zone and saturation of neighboring properties as well as sufficient parking.
Cannon Beach/Manzanita/Arch Cape - Generally Cannon Beach and surrounding areas can obtain a limited STR permit of one booking every 14 days.
Astoria - Commercial zoning only.
A good rule of thumb is to check directly with the city/county planning for any property that has high potential. Each jurisdiction is highly specific and the rules are constantly evolving. We have found that planning departments are generally responsive to phone or email inquiries.
Our STR HOT sheet is focused on properties that meet permitting criteria. Best practice is for buyer to perform due diligence by verifying eligibility directly with the city or county.
You can also search for yourself at www.sesemisheet.com Text 541-800-0455 for the cheat code.
🎰 Here are Seven STR Picks this week on the OR Coast:
1435 NE 12th St Lincoln City OR - FSBO Asking $499k STR Eligible
1225 Willow Ct Florence OR - SFR + ADU. STR ok. Asking $625,000
1545 SW Ocean Terrace Waldport OR - Large SFR. Asking $662,500
2063 NE 56th St Lincoln City OR - Road’s End STR. Reduced $755k
124 Moore St Brookings OR - TWO STR’s. Asking $749,999
17820 Ocean Blvd Rockaway Beach - Oceanfront STR. Asking $1.2M
1585 Beach Ave Brookings OR - Oceanfront STR. Asking $1.55M
BONUS: Here are 3 NEW Multi Family listings in Oregon:
589 10th Ave Coos Bay OR - Triplex Asking $449k
75 Highway 101 Warrenton OR- Six Plex Asking $640k
805 Garibaldi Ave, Garibaldi OR - 12 Plex Asking $1.25M
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Thank you for reading this week’s edition of Sesemi STReet, your one step solution to intuitive investing in Oregon and California. Schedule your 1 on 1 consultation or annual Spring catch up before the full summer season!
Hosted by: Anthony AJ Wong Licensed RE Broker in the States of Oregon & California. FL NMLS ID: 2297941
