Buy and hold townhome in Beaverton, OR

[Tracy Ross]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $172,000
Cash invested: $10,000
Sale price: $271,500

Row home in desirable Beaverton, Oregon outside of Portland. 3 Bedroom, 2.5 Bath 1464 sq. ft. Bought as Primary, lived in for 1 year then rented for 3 years.

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

This was my first investment deal. It got me started on my investment journey and I think it's a great way for a lot of young people to start. House-hopping by buying a primary, fixing it up while you live in it and then renting it and moving into another primary is a great way to get started in Investing using conventional loans.

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

I used a real estate agent, Sharon Bloudek, in Portland. She is the Primary Broker/Owner of Living Room Realty.

How did you finance this deal?

Conventional financing 5% down

How did you add value to the deal?

Light remodeling. Paint, flooring, new back deck, light fixtures, etc. The value was in holding this property. The appreciation in Portland in those years was great.

What was the outcome?

I sold this property in 2017 to purchase a home in Bend, OR- which then appreciated $75,000 in one year before it was sold and used to purchase a home in Boise. That home then appreciated $165,000 in two years and was used to leverage another primary and my short term rental.

Lessons learned? Challenges?

This was my first experience with tenants which made me initially gun-shy to long term investing. I had all sorts of issues with my tenants. Keeping chickens in the garage, having a home water birth on the carpet, overloading and blowing outlets, just plain dirty and destructive.
That's when I decided to use the money from this property to house hop and fix up primaries. What I learned was that you can't have an emotional investment in your properties.

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

Sharon Bloudek- Living Room Realty Portland, OR. She is incredible! If you're looking for property in the Portland area give her a call!