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Updated almost 5 years ago on . Most recent reply

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Justin K.
1
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5
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Duplex (Vancouver WA) live-in worth it?

Justin K.
Posted

Hi guys,

First time home buyer here trying to house hack my first property in the Portland/Vancoucer area.... The pacific NW I'm finding is a pretty tough place to cash flow on anything. Most homes fail the 1% rule here, and the decent ones seem to get swept up by cash buyers almost immediately (I've already lost 5 bids on duplexes this past week).

I don't know if it's the corona virus scare, but one of my offers finally got accepted. It's a 1680 sq ft duplex in vancouver (2bd 1bath) for $351,000. The current rents are $950 each side, and I think that's probably close to market rate.

First question is whether you guys think it's worth it to go through with this deal even if my cash flow breaks even or slightly negative? If I put 5% down, I would still not cash flow positive on this property at current rents. However, I've been wanting to get into the real estate market for some time now, and felt this was still the safest way to go given my market. I considered investing out of state, but I felt it would be better to buy my first property nearby. I can also take advantage of lower down payments by moving in.

I am technically in escrow, but the offer is contingent on a walk through, which I am about to do on wednesday. 

Second question is whether I should offer lower than the list price? Given the current market conditions, I feel like the market is in favor of buyers since the state is on lockdown, with continuing economic uncertainty.

Thanks so much for your input!

Thanks!

  • Justin K.
  • Most Popular Reply

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    359
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    Austin Youmans
    • Investor
    • Vancouver, WA
    143
    Votes |
    359
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    Austin Youmans
    • Investor
    • Vancouver, WA
    Replied

    there are other advantages then cashflow but personally I wouldn't buy something that doesn't have the potential to cashflow within a year or 2. That being said depending where this is at in Vancouver you could possibly get 1100 for rent.

    I would definitely counter with a lower offer during your inspection period just to see what they say as there are not a ton of offers going out right now.

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