Do you want to buy your first investment property, but you aren’t sure how you’ll finance it? Here are 6 ways to get the cash you need to invest here locally in the Portland area!
Entering the world of real estate investment is a major step toward financial independence, and there’s no better place to start than in Portland. With its growing population, stable job market, and increasing demand for rental properties, Portland offers consistent opportunities for both novice and seasoned investors. However, getting started can seem daunting, especially if you don’t come from a real estate background. The good news is, with the right strategy and a bit of determination, purchasing your first investment property can be well within your reach.
Whether you’re looking for passive rental income, long-term appreciation, or a future retirement nest egg, the key is to start smart. Below are detailed strategies to help you secure your first property and start building wealth through real estate in Portland.
Start with the Right Mindset
Many first-time investors get stuck in a cycle of hesitation, thinking they need to have it all figured out before taking action. But the truth is, the first deal is often the most challenging simply because it’s unfamiliar. Once you get past that initial barrier—making an offer, securing financing, and managing a property—you’ll gain confidence and clarity. Every successful investor started with one property, and yours could be just around the corner.
Partner with Experienced Investors
If you’re low on capital or unsure about going solo, consider forming a partnership. Joining forces with an experienced investor can reduce your risk and provide a valuable learning opportunity. Seek out local real estate investment groups in Portland, attend meetups, and participate in online forums specific to your area. When you identify active investors in your community, don’t be afraid to reach out. Many are open to working with motivated newcomers or may be willing to offer mentorship in exchange for help finding deals or managing properties.
A good partner can bring financing, construction expertise, or property management skills to the table—complementing your strengths and accelerating your entry into the market.
Utilize A Private Lender
Working with a private lender in Portland can help you to get the cash you need to make your first property investment. They will typically have different requirements for getting a loan than a conventional bank does. You will likely be able to get your money faster, without having to jump through as much red-tape.
Liquidate Idle Assets
Sometimes, the funds you need are already in your possession—you just haven’t tapped into them. Do you own unused land, an extra vehicle, or equipment you no longer use? Many people have valuable assets sitting around that could be sold to raise a down payment or fund rehab costs for a property.
Look around and evaluate what you truly need and what could be converted into investment capital. Selling a boat, motorcycle, or unused storage unit could be your ticket to a property that generates consistent monthly income.
Save For Your Down Payment
If you’re working with limited resources, don’t get discouraged—saving for your down payment is still possible. Traditional lenders typically require 20% down, but some loan programs may require less. Regardless, having at least $10,000–$20,000 saved can open doors to entry-level investment properties in Portland, especially in up-and-coming neighborhoods.
Start by building a realistic monthly budget. Track expenses, cut unnecessary costs, and consider taking on a side hustle or freelance work to accelerate your savings. Use high-yield savings accounts to earn interest while your money grows. Commit to the process, and you’ll be surprised how quickly you can reach your financial goal.
Utilize The Owner/Occupant Loophole
Many investors get their start with an owner-occupied investor property. Using an FHA loan, you are able to buy a property of up to four units. The catch is that you must live onsite for about two years. While multi-family housing may not be what you are looking for personally, by living there for a short period of time you will be able to achieve free room and board while putting money toward a multi-family, income-producing asset, that can benefit you for years to come. For many investors, the trade is often worth it!
Single investors who want to buy their first home or investment property can apply the same concept to a single-family home. By renting out the rooms to friends or family, you’ll be able to pay your mortgage, possibly living for free. Down the road, you’ll be able to rent out the house in its entirety or you will be able to move into the property yourself and your future family, with much of the balance owed already paid off.
Get A Home Equity Line of Credit (HELOC)
A home equity line of credit or HELOC can help you purchase your first investment property by providing you with a loan that is secured against the current equity you have in your primary residence. It is also known as a second mortgage. Unleveraged equity is basically money that is just sitting there. When you use a HELOC to buy an investment property in Portland, you are putting that money to work for you, which will pay off in the long run. HELOCs can be secured rather quickly and offer very competitive interest rates.
Purchasing your first investment property in Portland is a big deal! At PDX Home Buyers, we can help you to reach your investment goals by helping you find the perfect property. We offer discounted real estate in Portland, working with investors or people looking to save money on a home of their own. When you are ready to buy a house in Portland, find out how PDX Home Buyers can be of assistance.