Title of Presentation

Ron Ross, CCIM
Ron Ross, CCIM
Ron Ross, CCIM
Ron Ross, CCIM
Ron Ross, CCIM
Pilot Butte Inn, corner of Wall St. and Newport Ave.
Ron Ross, CCIM
Minnesota Ave. circa 1982
Ron Ross, CCIM
Pole Pedal Paddle team circa 1985
“Ruegg’s Zipper Rippers and Hefty Hippers”
Ron Ross, CCIM
“Deschutes County’s rapid growth 64th in nation”
“Census shows the secret out about Central Oregon”
“Home sales robust in Central Oregon”
“Job growth surprisingly strong”
“Things are hopping in Old Mill District”
“High Desert calls to companies like ISky”
“Prices rocket incomes stall”
“Bend, Oregon isn’t just a city. It’s a state of mind”
“Deschutes County is a hot bed for high tech growth
in the last few years”
“We have matured out of the boom/bust cycle”
Ron Ross, CCIM
Ron Ross, CCIM
BEND HOME
Average Price
$450,000
$426,044
$400,000
$350,000
$300,000
$238,186
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Home Price
Ron Ross, CCIM
BEND LOT
Average Price
$300,000
$278,403
$275,000
$250,000
$225,000
$200,000
$175,000
$150,000
$125,000
$97,883
$100,000
$75,000
$50,000
$25,000
$0
Lot Price
Ron Ross, CCIM
BEND APARTMENTS
Average Rent
$650
$632
$615
$600
$550
$500
$450
$400
Rent for 2 Bedroom…
Ron Ross, CCIM
BEND SINGLE FAMILY HOME
Average Rent
$1,300
$1,250
$1,231
$1,200
$1,150
$1,100
$1,050
$1,012
$1,000
$950
$900
$850
$800
$750
$700
$727
$650
Rent Single Family Home
Ron Ross, CCIM
Year
Price/Income Mortgage Payment/Income
1990
2.60
21%
2000
3.65
23%
2007
6.66
39%
2010
3.64
26%
2012
3.45
18%
Ron Ross, CCIM
Ron Ross, CCIM
Rents
Vacancy Rates
Bend Office
21.6%
Bend Retail
9.0%
Bend Industrial
14.5%
Redmond Industrial
24.2%
Bend Apartments
4.1%
Rents off 40-50%
from peak
Ron Ross, CCIM
2007
NOI = $100,000
CAP Rate = 6%
Value = $1,666,667
2012
$60,000
8.5%
$705,882
% Change = (-57.7%)
Ron Ross, CCIM
CAP Rate =
Example: CAP Rate of 10% =
Purchase Price
Net Operating Income
$1,000,000
$100,000
Ron Ross, CCIM
I. Income
Current rent roll (if credible, look for recent increases that maybe are
not yet seasoned)
II. Vacancy
5% is widely accepted
III. Expenses
Ratio of 35%-45% of gross operating income- could be higher in some
cases
a)
Property taxes
b)
Insurance — $150 per door is average
c)
Utilities & garbage — $400 to $500 per unit
d)
Repairs and maintenance- $500 per door stabilized
e)
Management and Admin. — 8-12% of GOI
f)
Reserves — 2-3%
Ron Ross, CCIM
Ron Ross, CCIM
Ron Ross, CCIM
Ron Ross, CCIM
Ron Ross, CCIM
Long Term Investment Horizon
Be Cautious with Leverage
Diversify
Ron Ross, CCIM
Buy Low Sell High
Ron Ross, CCIM
Buy a Home
Down payment
2007
$85,208
TODAY
$46,637
Monthly payment
$1,935
$910
Ron Ross, CCIM
Buy a building
for your business
Ron Ross, CCIM
Buy land
Ron Ross, CCIM
Empire Village Condos
$5,900,000
Mill Point Building 7000
$3,876,000
Mt. Bachelor Park & Ride
$2,500,000
East Empire Industrial Park
$5,500,000
Dorn Property
$2,600,000
Highland Marketplace
$2,325,000
Deschutes Ridge
$5,155,000
Tuscan Square
$2,575,000
Penny Galleria
$2,060,000
1567 SW Chandler Ave.
$1,825,000
NewportLandingSubdivision
$1,425,000
Redmond Design Center
$1,400,000
High Desert Sleep Center
$1,975,000
Mercato Site
$1,425,000
Pioneer Park Building
$1,327,000
Columbia River Bank Bldg.
$1,550,000