4 Plex in Portland, OR or Not??

[Peter Slivkoff]

Dear BP, 

I'm currently gathering the financing to buy my first 4 unit rental property in the Portland, OR area, however I've heard some things that are giving me pause.. What I've heard is that there are good States to invest and become a Landlord and bad States - Grant Cardone for example speaks about this often.

Are there new laws in Oregon that favor tenants over Landlords and limit how much I can raise rents - 10% limit or something?  If so, would it be more wise to invest in say another location?  

Are there any 4 plex [or other multi unit] owners who are getting around these laws to their advantage and profit?

I plan on living in one unit for 12 months + 1 day, fixing up any units that are or become vacant, using an FHA loan (PP + rehab) and eventually raising the rents on all units.

Any sage advice and wisdom from 4 plex owners [and the like] would be extremely comforting & appreciated!

Sincerely, 

Peter

[Neal Collins]

@Caleb Webster Outside of some limited institutional foreign investor activity with the purchase of places like the Yard, there really hasn't been much foreign institutional grade activity in Portland. If Portland has strong economic and population growth the institutional-grade investors will likely find the city more and more attractive. We'll get uglier buildings as a result since construction costs are high and bankers will make more aesthetic decisions.

Long term mom and pop owners are in a position where they are wanting to cash their chips in more than what we've seen in the past. I certainly can't blame them. Portland, and the rest of Oregon's landlord tenant laws certainly are changing. They may not be all that onerous yet, but they make up for it with complexity. 

With the complexity comes opportunity. 

Supply has increased so it's not as much of a sellers market, but there is also a burgeoning cottage industry of tenant lawyers out there. For the mom and pops they see things like changes in screening criteria, increased fees, complicated timelines to increase rent, etc and think twice about holding on long term.

@Peter Slivkoff I wouldn't look at it like getting around the laws, but knowing the laws backwards and forwards. They will impact your pro forma and will make or break your ROI.