How can multi-family homes work in oregon with higher pricing?

[Mark Tiersma]

Hey Oregon locals! I have been watching multi-family homes for a while now in central Oregon, and the Willamette valley. Some are intriguing others to me are seemingly appalling. I am considering house-hacking a four-plex to get started in real estate investing, preferably in central Oregon, but using the 1% or especially the 2% rule it makes no sense to me. From what I understand many of these could work but it would mean putting in a large down payment, lowering my mortgage payment, thus producing small cash-flow or breaking even.

A few I've seen on the market a while; one is listed around $270k for a duplex, when I drive by to check it out, its in terrible shape- don't get me wrong, I would love to rehab a place but the numbers need to work right? This particular duplex had nothing good to say for it other than I believe a good location. I'm not sure I can go off of it but the county records value the land at $77k and total RMV of $140k. If I could purchase it low then Brrrring would make sense. I would like to be able to buy and hold while cash-flowing, for now I work a full time job, and struggle with building a strategy -finding the right opportunity- to get real estate investing started. I am ok with making mistakes, and want to learn from them, but believe that a deal needs to make sense, and what i'm seeing on the MLS isn't making sense as a good deal. Am I crazy in thinking this???

Merry Christmas Everyone!

[Christine Mulkins]

They’re out there. You just need to consider looking outside of PDX and Bend.  Salem seems to have a bit lower pricing overall. 

If you're using MLS to find deals, then analyze and make offers based on the numbers that make the most sense to you. If you're set on PDX and Central Oregon, try sending letters to owners of multi family properties you'd like to own. Craigslist is another way to seek out rental property owners. Find those who are self-managing and reach out to them to see if you could buy their property.

You miss all the shots you don’t take.