Table of Contents
- Is the Oregon Coast a Good Place to Buy Vacation Rentals?
- 7 Things to Consider When Finding Vacation Rentals for Sale on the Oregon Coast
- 8 Cities on the Oregon Coast With the Most Profitable Vacation Rentals
Since Oregon is one of the greatest locations to live in the country, with dozens of world-class tourist attractions and spectacular real estate, investing in a vacation house for sale in Oregon can be a wise and profitable solution if done right.
Now, as a current landowner, you understand what it takes to buy a home for sale. That being said, there’s far more to consider when it’s time to buy your second vacation property.
To make things easier, we are here to help you decide whether it is the right time to invest in a vacation rental for sale on the Oregon Coast and see what the current real estate market holds for investors. Moreover, Mashvisor is here to pave the way through your investment journey and find the best vacation rentals for sale.
Is the Oregon Coast a Good Place to Buy Vacation Rentals?
Yes. In the past few years, Oregon’s seen a number of new individuals ready to call the state home—which is just one of the reasons for investors to consider the Oregon Coast as an excellent place to purchase a property for sale.
For starters, Oregon is home to a diverse landscape, ranging from the rocky shoreline in the west to the high desert in the east. If the wet season doesn’t discourage you, Oregon boasts an incredible 2,664 trails that will take you through tranquil pine woods and magnificent waterfalls.
For people seeking a place with dynamic vacation rentals for sale Oregon Coast, the Beaver State is renowned for its innovative craft beer and food industry, not to mention its support of punk and indie bands.
But is it a good time to buy vacation rentals for sale on the Oregon Coast? Let’s see what the market holds for potential investors.
Oregon Coast Real Estate Market and Trends
Seasonal changes, such as excess inventory and buyer demand, can substantially boost or lower the cost of your potential new home. Depending on the location, buying at a specific time of year might significantly reduce the home’s price.
For example, in the past, Oregon featured some of the most affordable real estate on the West Coast. Additionally, residents from California and Washington are moving to the Oregon Coast in search of a cheaper and more tranquil lifestyle.
Nevertheless, beginning the process at the right moment is one approach to making purchasing a house simpler. Housing inventories, mortgage rates, and market conditions in Oregon fluctuate each month, which is why staying up to the latest data and stats is essential.
For example, listing rates for properties in Oregon were lowest in April this year. Houses were $39,000 less costly, on average. On the other hand, November last year was the most expensive month, where listing prices were $47,000 more than the yearly average.
Now, let’s see the Oregon state-level data as of August 2022, provided by Mashvisor.
- Median Property Price: $667,133
- Average Price per Square Foot: $572
- Days on Market: 57
- Monthly Traditional Rental Income: $1,861
- Traditional Cash on Cash Return: 1.28%
- Traditional Cap Rate: 1.30%
- Price to Rent Ratio: 30
- Monthly Airbnb Rental Income: $3,533
- Airbnb Cash on Cash Return: 3.08%
- Airbnb Cap Rate: 3.14%
- Walk Score: 50
As we can see, the Oregon state-level data shows us that owning vacation rentals right now is more profitable than traditional rentals.
In the end, the more you understand the house purchasing process and current real estate patterns on the Oregon Coast, the better you’ll handle such a challenging process as swiftly and efficiently as possible.
7 Things to Consider When Finding Vacation Rentals for Sale on the Oregon Coast
If you’re considering purchasing a vacation house on the Oregon Coast, there are several aspects to keep in mind, including pricing, location, charges, taxes, and fees.
Analyzing a particular market and a house to buy involves a step-by-step analysis, and some factors cannot be quantified. In this part of our article, we go through important factors in depth to help you decide what, when, and where to buy on the Oregon Coast.
Here is a summary of the most important factors to consider when purchasing vacation rentals for sale Oregon Coast.
1. Investment Properties and Financing
Loans for investment properties and second residences often require more money and come with a higher interest rate. Moreover, your loan expenses will determine whether you can manage to do so or whether you should consider financing an Oregon Coast vacation house.
The key step is to talk with a lender (or a few of them) to see what you can afford and whether it makes sense for your current situation.
2. Average Daily Rate and Occupancy Rate
The average daily rate and occupancy rate are the two core parameters to analyze your anticipated returns if you plan on leasing out your Oregon Coast house as a holiday rental.
Gathering data on how frequently properties are rented in a specific location and what the average rates are can give you a general idea of how much you could earn monthly and annually.
You can easily do this by employing the vacation rental property calculator by Mashvisor. Mashvisor’s short-term rental calculator is intended to assist real estate owners in navigating the complexity of today’s tourism industry and answering the most crucial question: How much money can I expect making from my vacation rentals?
Pricing your rental appropriately—and taking into account certain aspects that may influence the outcome—can be difficult. However, the procedure becomes surprisingly simple with the features provided by Mashvisor’s rental income calculator.
We’d like to highlight a few essential points when it comes to our calculator:
- It delivers real-time, highly accurate information and statistics
- It is one of the most dependable profit estimation strategies
- It is simple to use, even for novice investors
- Using a calculator rather than the “old-school methods” will save you a lot of time
- It informs you about investment strategies that are appropriate for your goals
Mashvisor’s rental income calculator informs real estate investors about investment strategies that are appropriate for their goals.
3. Determining the Intangibles
The occupancy and average daily rates for a community only tell you so much about where the potential is. Many intangible aspects of a place may only be assessed by examining the experience of staying there.
Easy access to the beach, type and age of home, recreational facilities, living area, and layout are all factors that might make a property more or less appealing.
Moreover, don’t forget about the “things” you might require to perfect your vacation property. For example, paddle boards and other beach toys and items—after all, it’s Oregon Coast—or barns and riding gear (if you want to personalize your vacation rentals even more).
4. Operating Costs
The operating costs of running vacation rentals include management company fees or rental charges (e.g., Airbnb). In addition, there are utility bills, maintenance fees, and more. The associated expenses, as well as your time, are removed from your overall revenue.
Finally, how about some more taxes? Oregon is one of the high-income-tax states across the country, at 9.9%. Nevertheless, Oregon Coast does not impose a sales tax—which is a brighter side here.
After the purchase is completed, there is more to address than just monthly mortgage payments. Can your budget cover property taxes, insurance, and additional expenses like HOA fees and landscaping?
The above are all the factors one should keep in mind while buying vacation rentals for sale Oregon Coast.
5. Attraction and Recreation
To kick it off with some pros of buying a vacation rental for sale on the Oregon Coast, we must start with its natural beauty.
Oregon is famous for its trees and green hills. You’ll definitely notice the change if you come from somewhere like Southern California.
And since it’s beautiful, individuals like to take advantage of it. As a result, there are several trails and recreation areas. In addition, there are several parking options for recreational vehicles and several camping areas. Moreover, some parts of the Oregon Coast are among the most beautiful in the world.
6. Growing Economy
Oregon Coast is known for its fast-growing economy—in fact, one of the fastest-growing in the country.
It helps that more individuals are moving here instead of leaving. According to USA Today, Oregon is the sixth fastest-growing state in the US.
Oregon Coast’s economy is thriving, helping boost job growth and property values. If you purchase a property on the Oregon Coast, you can be confident that it will be a worthwhile vacation rental investment for many years.
7. Culture and People
The people are a big advantage for the Oregon Coast. They are often kind, welcoming, and relaxed, even to “strangers.”
Oregon offers new property owners and guests a chance to experience a different culture. In the end, nothing beats a traveling experience like meeting kind and friendly people that make you feel like you are at home.
Now that we’ve covered the things to consider when buying vacation rentals for sale on the Oregon Coast, let’s see the top cities where you can search for the most profitable vacation rentals.
8 Cities on the Oregon Coast With the Most Profitable Vacation Rentals
Before purchasing an Oregon Coast rental property for sale, you should thoroughly research the market to select a profitable area for owning an Airbnb rental. Fortunately, Mashvisor can assist you in making an informed decision by providing all the necessary data.
Here are the top eight cities we think are ideal for vacation rentals, ranging from those with the highest to the lowest cash on cash returns, based on Mashvisor’s August 2022 data:
1. Tillamook
- Median Property Price: $534,429
- Average Price per Square Foot: $338
- Days on Market: 58
- Monthly Vacation Rental Income: $3,520
- Vacation Rental Cash on Cash Return: 4.54%
- Vacation Rental Cap Rate: 4.62%
- Vacation Rental Daily Rate: $206
- Vacation Rental Occupancy Rate: 53%
- Walk Score: 82
2. Florence
- Median Property Price: $661,975
- Average Price per Square Foot: $320
- Days on Market: 88
- Monthly Vacation Rental Income: $4,047
- Vacation Rental Cash on Cash Return: 4.30%
- Vacation Rental Cap Rate: 4.38%
- Vacation Rental Daily Rate: $203
- Vacation Rental Occupancy Rate: 59%
- Walk Score: 65
3. Yachats
- Median Property Price: $647,885
- Average Price per Square Foot: $488
- Days on Market: 22
- Monthly Vacation Rental Income: $3,779
- Vacation Rental Cash on Cash Return: 3.68%
- Vacation Rental Cap Rate: 3.75%
- Vacation Rental Daily Rate: $207
- Vacation Rental Occupancy Rate: 59%
- Walk Score: 51
4. Waldport
- Median Property Price: $670,657
- Average Price per Square Foot: $380
- Days on Market: 29
- Monthly Vacation Rental Income: $3,567
- Vacation Rental Cash on Cash Return: 3.44%
- Vacation Rental Cap Rate: 3.50%
- Vacation Rental Daily Rate: $243
- Vacation Rental Occupancy Rate: 53%
- Walk Score: 53
5. Gold Beach
- Median Property Price: $906,842
- Average Price per Square Foot: $382
- Days on Market: 120
- Monthly Vacation Rental Income: $3,929
- Vacation Rental Cash on Cash Return: 3.27%
- Vacation Rental Cap Rate: 3.32%
- Vacation Rental Daily Rate: $219
- Vacation Rental Occupancy Rate: 54%
- Walk Score: 52
6. Lincoln City
- Median Property Price: $686,918
- Average Price per Square Foot: $414
- Days on Market: 80
- Monthly Vacation Rental Income: $3,511
- Vacation Rental Cash on Cash Return: 3.11%
- Vacation Rental Cap Rate: 3.16%
- Vacation Rental Daily Rate: $220
- Vacation Rental Occupancy Rate: 55%
- Walk Score: 61
7. Newport
- Median Property Price: $540,899
- Average Price per Square Foot: $329
- Days on Market: 32
- Monthly Vacation Rental Income: $3,349
- Vacation Rental Cash on Cash Return: 3.05%
- Vacation Rental Cap Rate: 3.10%
- Vacation Rental Daily Rate: $209
- Vacation Rental Occupancy Rate: 52%
- Walk Score: 88
8. Depoe Bay
- Median Property Price: $790,250
- Average Price per Square Foot: $431
- Days on Market: 36
- Monthly Vacation Rental Income: $3,387
- Vacation Rental Cash on Cash Return: 2.62%
- Vacation Rental Cap Rate: 2.66%
- Vacation Rental Daily Rate: $218
- Vacation Rental Occupancy Rate: 53%
- Walk Score: 39
If you’re ready to start looking for the finest vacation rental property for sale on the Oregon Coast, use Mashvisor to start your search now.
Conclusion
We just summarized the real estate market and what to do if you plan on buying vacation rentals for sale Oregon Coast. The Oregon Coast real estate market is well-liked for a reason, and this is no exception. It offers a variety of excellent urban and suburban investment opportunities.
In addition, we addressed the loan requirements for renting a vacation home. Remember that you might face additional restrictions if you acquire the property as an out-of-state resident.
You must also look into specific tax considerations, primarily Oregon’s short-term rental tax rules. Your vacation property’s address can help you identify tax jurisdictions, which taxes you must gather, and your tax rates.
And if you are ready to purchase your vacation property, Mashvisor is here to help. Our database includes the most recent listings for sale in the United States.
To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.