Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Portland Real Estate Forum
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 4 years ago,

User Stats

14
Posts
8
Votes
Mike Meerschaert
  • Portland, Or
8
Votes |
14
Posts

Convert a duplex into 4plex in R5 zone

Mike Meerschaert
  • Portland, Or
Posted

Hi,

I own a Duplex in North portland, and each side has a finished upstairs with 1026 sq feet, a 726 sq foot unfinished basement, and a 300 sq foot garage. I'm considering finishing the basements on both sides, and turning them into 1br units, so building out a bathroom / bedroom / kitchen downstairs on each side.

Does anyone know if it's legal to convert a duplex into a 4-plex in an R5 zone? House Bill 2001 makes me think it might be possible, but I don't know for sure. I reached out to Portland BDS but haven't heard anything back yet (been about a week) so i was hoping someone on these forums might know.

As for the numbers, I've spoken with a local property manager and they think it'd add between $31k - $38k in annual rent, and I've spoken to a contractor they estimate it'd cost around $180k, so that'd be between 17% - 21% ROI, so it's kind of a no brainer if it's legal and I can secure funding.

As for financing the construction, I have excellent credit, and some equity built up, so I'm considering using a HELOC with a 95% LTV, Does that sound like a good idea? Anything I should be aware of? Or should I consider something else? It's my first investment property so I'm kind of figuring this all out for the first time.

Loading replies...