Questions on a short sale in Portland, OR - Sullivan's Gulch

[Kevin Asgharian]

Would love feedback on a recent short sale I saw because there is something off.   Property / Finance details here with comments below.

Address: 2626 NE Multnomah St, Portland, OR 97232

Property Notes: large basement but ceiling too low, could be zoned into duplex, gutters not attached, evidence of plumbing issues, backs directly to freeway, noise is very present, tenants don't mind noise.  1 squatter

Purchase price 337k

Liens aka Cash needed - 66k

Repairs needed est - 10k

Rent estimated - $2,300/month

My number crunch viewable at this link

https://docs.google.com/spreadsheets/d/1FJlTFIbInZ...

I love the area for appreciation. Its called Sullivan's gulch, its close to transit, grocery, city, etc. The drawback is the freeway proximity and some gang crime in adjacent areas. I walked through and talked with tenants. Its back on the market as the last buyer didn't have enough cash for the liens.  The property has been approaching foreclosure several times. The owner has 11 other Oregon properties(mix of residential/commercial) with 2 others for sale (all 3 with different realtors). The other two look kept up and no evidence of problems. The realtor has not responded to inquiries surrounding the property. The short sale and discrepancies were enough to put me off. In general, What is the reason a property owner would allow 1 property to go short sale and why would a lender do it in this situation? 

For those of you local to Portland, I'm sure some of you saw this. Would love to know your take as well and if you have a better angle on this and would like to partner on it to learn through your wisdom.    For instance it is zoned to allow a duplex but I couldn't see anyway to convert it over given the structural constraints.

Thanks!

[Lisa Thoele]

Hello Kevin!  I don't currently purchase in Portland but know the area a little.  Just my thoughts, you might not be missing anything.  I'm sure that there are more qualified people who can speak to the numbers for your rental income projections. The listing history is a little wonky but it looks like it just came back on the market in the last few days from a long time listed as short sale pending? She might already have offers?  That being said I think it could be challenging for them to find the right buyer - someone patient for a short sale and a buyer who wants to bring $72,000 in cash for liens and short sale negotiators before their downpayment?  Kind of a tall order.  But Portland is so hot so who knows!  I would try texting the listing agent - she's had this property listed on and off since 2008 and has been dealing with the short sale (what a pain for an agent) - she's probably sick of it, not making any money on it and has probably been fielding a million calls from completely unqualified first time buyers who want that area but don't really pay attention to the details and don't have any cash - I would be clear in your communication with her that you understand the requirements and have the cash to close - I've had transactions with her in the past she's been around for a long time.  As to your question regarding why a lender would do this on one property, perhaps the sellers have different lenders on each property and not a lot of equity in any of them?   Sounds like they are trying to liquidate some and this one might be the property that they have used as their scapegoat?  Good luck with it!