Oregon Multi Family Year in Review and Market Outlook

[AJ Wong]

As promised, some insight into the multi family market in Oregon and a handful of multi family properties we helped investors acquire in the past year or so:

- 7 Plex, Langlois Oregon $875k Cash Sale. Eligible for multiple usages including STR. 10% CAP.

- Triplex, Albany Oregon $505k with 3% seller concession: Turn-key, vacant, 2-2/1 + 1/1 with 10% no PMI investor program.

- 6 Plex, Lincoln City Oregon $635k, mixture of units, seller preferred cash only, financed with local CU with 25% down. Favorable terms. 

- Duplex, Salem Oregon $421,500 with 2% seller concession: Two updated 2/1 units with 1/1 garages.

On the radar: 

- 6 Plex, Florence Oregon Target Price $850k or $865k with 2% seller concession. One duplex and four unit cluster. All 1/1's with W/D in units. 

- Triplex, Depoe Bay Oregon Target Price $530k+/- Three 1/1 updated units with commercial zoning. Eligible for mixed usages including STR.

- Fourplex, Coos Bay Oregon Target Price $535k Four 2/1 Units, with garages, two are updated. 

- Ten Plex, Eugene Oregon Listed $1.75M Updated units near University of Oregon. 

- 20 Units, Newberg Oregon Listed at $3.8M with assumable loan at 3.7%. 

- 30 Units, Portland Oregon Listed at $5.5M with seller carry interest only option.

Multi Family investor focus is typically along the coast and the I5 corridor. From Eugene to Portland there is high demand, particularly for updated rental options. There is a steady stream of buyer activity from those either priced out of the surrounding states or looking for greater leverage. Rents have grown considerably the past three years, there are some tenant laws that investors should be aware of. Mainly, State Wide Rent Control

Other rules to be aware of here. 

Generally speaking the Oregon Multi Family market is quite small. For any given investment criteria there are likely only a handful of suitable candidates spread across a considerable geographic territory. 

For larger portfolio footprints there is often the option to explore seller financing, local financing or other non traditional ways and means of transacting. In other words, investors can anticipate less competition and more creative paths to closing.