Goodbye Analysis Paralysis, you will not be missed!

[Erik Sanders]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Portland.

Purchase price: $550,000
Cash invested: $27,500

Bought this new construction duplex to operate as a house-hack STR. Purchased with creative financing utilizing a 5% owner-occupied loan. Plan is to eventually operate both units as STR's. Though even operating one unit as a STR is yielding a 47% Cash-on-Cash ROI annually!

What made you interested in investing in this type of deal?

My goal was two fold, eliminate my largest expense of housing, and capitalize on the economies of scale with multiple units. I knew the short-term rental model would allow me to reach my financial independence goals much quicker with far less units.

How did you find this deal and how did you negotiate it?

Found on the MLS, by researching price reductions. Owner/Developer was in a pinch with her construction loan coming due, negotiated over $40k off original asking price to help her close.

How did you finance this deal?

5% owner occupied conventional financing.

How did you add value to the deal?

Maximized potential by creating an additional unit that was originally just a "mother-in-law suite" and properly separated units to function as two independent STRs.

What was the outcome?

Free housing, 47% CoC ROI with just one unit rented. Expect that to increase once both units are vacant and live. Even with just the one unit renting, we expect to make back our initial investment in less than 1 year, with plans to re-invest and purchase many more!

Lessons learned? Challenges?

The true value of time saved. We learned the importance of planning what work to delegate and what work to do yourself. We wasted many weeks taking on the backyard landscaping on our own to save a buck rather than outsource it all to professionals who would have costed slightly more, but saved us literal months of reno time.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Still looking to build a strong relationship with investor experienced agents locally in the PDX and Bend markets.