Multi-Family and House Hacking - Portland, OR

[Account Closed]

Hi BP,

I'm in the Portland area - interested in Multi-Family RE and house hacking - looking to learn more and network with like minded individuals.  We have a few single family rentals currently but considering house hacking a 4 plex in the near future if we can find a deal that works. Not put off by projects that need work and living on site would allow us to improve a unit at a time if necessary.  Look forward to connecting...

[Julee Felsman]

@Account Closed who are both local experts and amazing resources). 

I'm happy to be a sounding-board for any loan-related questions you have. Here are two things that come immediately to mind...

If you want to put <20% down, you'll likely be financing with an FHA loan. FHA financing requires 3 & 4 unit properties pass a "self-sufficiency" test, whereby 75% of the appraiser's determination of market rents must equal or exceed your new total payment (loan, taxes, MI, insurance). That's a very tall bar for most properties in our market.

Also, given that you already own other rentals, your purchase will go under added scrutiny in underwriting connected to your occupancy. You will likely need to sell the underwriter on your planned occupancy with a letter explaining why you're moving from your current residence to the plex you are buying. Your occupancy will need to make sense to an underwriter. If you're moving from a bigger, nicer home into a dumpy, fixer plex, you can expect some push-back.

Good luck!

Julee