Where to Invest (Part 3) - The Far West and Pacific Northwest

Welcome to another edition of the Coast-to-Coast Real Estate Investor. In the last edition I discussed the desert southwest states. In this edition I’m going to continue looking at the West, this time with the Far West and Pacific Northwest states.

Let me begin by discussing an important influence – I want to point out a significant demographic shift that effects the Western US. California investors, retirees, and those fleeing the state for various reasons (ie. crime, congestion, etc.) tend to go north to Oregon and Washington, and to adjacent states east. Thus the California population shift has dramatic effects on the neighboring states. We’ve seen some of that with Arizona and Nevada.

With that in mind, let’s go back to Nevada and consider some areas other than Las Vegas.

Nevada
Last edition, I mentioned Las Vegas. Today, I’ll begin by discussing Reno, which I believe will share the destiny of Las Vegas. As Vegas continues to be popular, with associated escalating prices, I believe that Reno will quickly fall next in line as the choice city in the state – and, it has a better quality of life. Currently, condos can be had for the low $100’s, so pricing is still good.

California
I ended the last edition by talking about the areas in and around Palm Springs and Indio California as representing the kinds of desert towns that are picking up steam as far as retiree interest.

Today, I’ll mention another interesting California area. It’s the town of Ridgecrest, and has what are undoubtedly, California’s best prices. The town is in the middle of the Mohave Dessert, and has seen better days. However, fixer uppers can be had as low as the 30’s, making the pricing incomparable in the state. The town has good proximity to two military bases, which is good for the landlord, and is a reasonable drive to Bakersfield. With dessert communities all the rage right now, I think there’s a reasonable bet on Ridgecrest.

Speaking of Bakersfield, that town isn’t a bad bet, either, with prices for condos and single-family homes starting around the 160’s and being a good sized California dessert town to boot.

Northern California - Crescent City in particular, in the extreme northwest corner of the state is a really interesting situation. It’s a coastal town - in California - with prices for fixers and mobile homes with land beginning under $100,000. It probably shares more in common with Oregon and Washington State than it does with Southern California, but the value there is abundantly clear.

Oregon
No mention of Oregon is complete without discussing Portland. Portland is a hot, hip city, driven by the affinities of young professionals, and people relocating from Silicon Valley, San Francisco, and Los Angeles. It’s a bit pricier than many areas I mention, with condos starting in the mid 100’s and single family homes in the high 100’s, but by today’s standards, even that’s cheap. And, Portland is in many ways like Los Angeles – it’s the kind of hip, urban hotspot with so much demand that prices can’t help but rise.

As you get away from Portland, much of Oregon tends to be rural or small town. That said, let me note that there are various coastal and rural areas where you’ll come across mobile homes, often with land. I am not too much of a fan of mobiles, but if it’s a purely lifestyle issue (ie. water view), or if the price is low enough (ie. Below the 30’s), then it could be an interesting buy.

Oregon has a long length of Pacific coast. Certain coastal towns offer opportunities. Look towards: Gold Beach (ocean view land for about $150K), Lincoln City, and Reedsport.

Small Cities also are good options with substantial quality of life and good values. Eugene, Bend, and Salem - Oregon’s capital city, famed for its wineries around Willamette Valley – are all good options. I’ll note that capital cities, in general are wise choices because jobs are plentiful and local economies, which are driven by government spending, are generally robust.

Washington
Along the Oregon/Washington border is Vancouver, Washington (not to be confused with Vancouver, British Columbia) which is getting a lot of retirement attention. While it’s essentially part of the Portland metro area, the feel is miles apart.

Seattle is a lot like Portland – one of those hot, hip cities that always have an influx of young professionals. Because of its amenities – cool urban environment, proximity to water, etc., it’s destined to keep appreciating. Certain cities are just like that. Prices in Seattle begin around $140 for small condos.

Pockets of pretty good value exist around Seattle & Puget Sound, which is otherwise pretty pricey. Bellingham, Bremerton, and Olympia are three good places to look. There’s a lot of water up there, so if water view, frontage or access is your thing, that entire region is one place to concentrate.

A lot of Washington State is pretty rural, so be prepared for that. Rural and coastal areas, like Oregon, are often populated with mobile homes, on their own land. These can represent an interesting investment if carefully selected.

On the coast is Ocean Shores with water view land in the low 100’s. Properties a bit more inland will run in the mid 100’s, but are very nearby to the water. A bit inland, but with water access is the small city of Aberdeen. Aberdeen is right on the edge of Grey’s Harbor, which is a fairly large body of water off the Pacific. Prices are very reasonable there.

If mountains are more your style, then consider Spokane, which is on the Idaho border and getting a lot of retiree attention.

Idaho
Speaking of Idaho, Coeur D’ Alene is an amazing real estate investment success story. About 15 years ago, property in that area was almost being given away. In fact, I wrote my first book entitled “Homes From $3,000; Land from $100 an Acre” which featured, among other areas Western Idaho and Coeur D’ Alene in particular. Today, with only a few exceptions, it takes about $200,000 to buy into that community. The telltale signs were always there – high recreational use; lots of people talking about retiring there; good river access and lots of recreation. It shows what can happen…perhaps inevitably happens…in a well-selected area.

For the most part, the entire state of Idaho has all of those same factors. Small cities and large towns offer the lifestyle that is the wave of the 21st century, and lots of rural real estate abounds for those in pursuit of even more seclusion. Quality of life is good, recreation is plentiful, and the state is getting lots of attention by prospective buyers.

Utah
Utah has much the same set of factors as Idaho. Geographically, it ranges from having similar characteristics as Idaho – mountains, rivers, etc., to desert scenery that rivals the best of Arizona or Nevada. Even in the large cities of Provo and Salt Lake City you’ll find value – and those same cities are become investment and relocation hot spots.

Smaller cities like Ogden are worthy of your attention, and tourist/recreation towns like St. George and Park City have exciting potential because the demand in those areas is rising so quickly.

I’ll wrap up with that. Next time, in Part 4 of my look at various states, I’ll continue the survey by exploring the Midwest.

Have a great day, and live your real estate dreams!