Triplex outside of Portland, OR

[Matt Browning]

Investment Info:

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

Purchase price: $525,000
Cash invested: $131,250

Single-level Triplex with large yard and garages just outside of Portland, OR. Two units are 3 bed/2bath, one unit is 2 bed/1 bath.
Have renovated two of the units post-purchase, as tenants turned over.
Cashflow is net of 5% vacancy allowance, 5% utilities, and 10% maint/capex allowance.

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

Getting a late start in real estate investing so wanted to by pass SFH and jump straight into multi-family. Was ideally looking for a 4-plex that proved tough to find but settled for this 3-plex.

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

MLS. The property was in contract when I found it but was able to jump in when the original buyer fell through.

How did you finance this deal?

30-year fixed, 25% down at 5.25% (Nov 2018). In the process of refinancing it now at 3.0% 30-year fixed (I plan to keep it long term).

How did you add value to the deal?

Have renovated two of the three units (mainly cosmetic...new floors, paint, misc., no major additions)

What was the outcome?

Cash flowing nicely, stabilized tenant situation

Lessons learned? Challenges?

Probably should have moved quicker to renovate the units rather than waiting for tenants to move out. Acting as my own PM hasn't proven to be as difficult as I feared. Should have gotten more bids for the various pieces of reno work...the first unit reno cost more than it should have.