Best Way to Find Off-Market Four-Unit for Sale in Portland?

[Zhiyun P.]

Hi BP,

My husband and I are both in our 20s and work remotely in the tech sector. We have been renting on the peninsula for the past 6 years, and recently we decided to look into buying and owner-occupying a multi-family property. Since this is going to be our first purchase, we are specifically interested in buying a four-unit (to maximize leverage through FHA), preferably on the peninsula.

We have been doing research, reviewing past sales, and observing the market for about 3-4 months and understand that the supply in Portland has historically been low, so instead of only waiting for MLS listings, we decided to ask around to see if there are other ways to connect with potential sellers. Some on the internet suggested trying mail-outs, do you think it would be a viable option in our case? It would be great if we could connect with a local investor who is looking to downsize their portfolio during the pandemic, but we don't know where to get started. What would you suggest to first-time multi-family buyers like us? Thank you!

Best,
Joon

[Brad Hammond]

I think it is hard to find multi-family properties off-market.  A couple of notes to think about.

1. There are not a ton of 4-plexes out there so inventory will always be low. 

2. Get on the list from a wholesaler.  

3. If you do find an off-market property, chances are you will need to fix some issues or it will need a lot of rehab.  That could be difficult for a first-time investor or someone without a wide network.