Newbie from Portland, Oregon

[Kyler Pace]

Hi Everyone!

I'm new to BP and hoping to start investing in real estate sometime in the near future in the Portland, Oregon area.  I have a short term, one year, financial goal that I'm working on, and after that hoping to start investing.  In the meantime I'm looking to learn as much as I can before jumping in.

Small, multi-unit dwellings, specifically 4-plexes, have been an interest of mine.  They seem to come on the market fairly often in my area and when I run quick numbers they seem to pencil out well for cash flow.  However, the down payment is what would hold me back from purchasing.  

One option, would be selling my current house to use the equity to purchase a 4-plex as owner occupied.  Not my ideal situation since I'm quite happy where I'm at, but it would be a way to get started.  I could probably have a small cash flow right away renting out 3 of the units, live in it a year, and then rent the 4th unit as well.  At that point, maybe purchase another unit?  Any thoughts on that idea?  Has anyone used that as a strategy before?

[Steve B.]

As @Michell P. said I'd be fairly incredulous if any of those 4-plexs you are looking at actually "pencil out well" here in Portland.  The problem currently is that everybody and their inexperienced nephew is trying to buy duplex's - 6 plex's in the belief that appreciation will make up for their crappy cash flow - they may be right, or not.  This is a problem you will never have in Cleavland.

If you are low on money I would suggest two strategies I would think are superior but would still likely cramp your rock n' roll lifestyle.  

Portland cash flow buy and holds strategys on a shoestring budget

#1 do the Ohio Ben L. house hack: buy a 5 bedroom in an appreciating neighborhood (super secret $$$ tip: Darlington) and rent out the extra space and rooms. This is a pain the the kester but it will actually pay your mortgage and cash flow unlike any of the 4-plex I see on the MLS.

#2 Buy a house on a big lot with an ancillary building and turn that into a livable dwelling. Rent out the main SFR and you live in the ancillary building. Portland wont allow a non-permitted livable space to be rented but I don't think they are yet to the point of stopping you from living and sleeping wherever you wish on your own property.