First non-owner-occupied purchase, and first 1031 exchange.

[Julee Felsman]

Investment Info:

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

Purchase price: $310,000
Cash invested: $62,000

Purchased through a 1031 exchange. I sold my first home and used the equity to purchase this building. This is the first non-house-hack purchase.

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

Buy and hold, in an up-and-coming part of North Portland... what's not to like?

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

The property was sale pending, when I spotted it in the MLS. I wrote a back-up offer and purchased it when the first buyer backed out.

How did you finance this deal?

Conventional loan with 20% down. Down payment came from a 1031 exchange. The relinquished property was was my first home, turned rental, years earlier.

How did you add value to the deal?

Boy did this place need work. We've made significant cosmetic upgrades to 3 of the 4 units over the years.