All Forum Posts by: Justin K.

Hello! I am close to purchasing my first fourplex, and was hoping to get some thoughts on this property (near Oregon State University) that I put an offer on. I will be doing a walk through tomorrow afternoon. Here is a link to the Bigger Pockets Calculator Report: https://www.biggerpockets.com/...

What drew me to this is the fact that 1. Inventory is low and there are very few multi-families in the Portland/Vancouver area. 2. This was one of the few properties that could potentially cash flow while only putting 3.5% down on an FHA loan.

Questions I have:

-This building is older (built in 1900) - should this be a major point of concern?

-Which type of multifamily setup is preferable (Stacked vs Side-by-side)? This one is stacked (3 story fourplex) with a mixture of two 3br 1ba, a 2br 1ba, and a 1br 1ba.

-Is buying a multifamily on/near college campus generally a smart decision? I would imagine the tenant profile to be primarily students. My initial thought was this would be bad since there could be high turnover and more wear/tear on the property. But on the other hand, there will always be a steady demand for student housing.

Any feedback (even unrelated to my questions) would be much appreciated!

Thank you!

Thanks @Austin Youmans and @Dan Stephens! Thanks for the response- you guys make some really good points. I actually backed out of the Vancouver offer, and ended up going with a duplex in Portland....closing on 5/4. Here's a link to my estimated calculator report if you guys are interested: Portland Duplex 

Austin- I was able to shave off $4000 based on the inspection that suggested I needed a new roof within a few years. So thanks for that helpful tip!

Dan- Lots of good stuff here! On my current property in Gresham, looks like comps are around $1200-$1300 for a 2br 1ba apartment. Hoping to get at least that- but even after I have both sides renting at $1300, my cash on cash ROI is only about 2%. I would probably classify this as a B class property.

COVID-19 definitely has me worried in terms of how it will impact my property's price/rental income. Just trying to stay current with the various bills and proposed bills that could affect the real estate market.

Thanks again for your input guys! 

Stay safe!

@Nick Finney@Neal Collins

Thanks so much guys for taking a look at my report and the great insight! Means a lot to me. Yes, the issue with the Portland market is that it's enjoyed rapid appreciation in the past 10 years, so meeting some of those rule of thumbs are difficult (i.e 1% rule, etc).

@Neal Collins
Yeah I don't expect rental performance to change...as for maintenance, the roof needs to be replaced soon, but I was able to get a $4000 credit during closing (roof estimate was $8k). The reason I decided to start in Portland was to utilize the FHA owner-occupied strategy. Felt this would be a good way to enter the real estate market via house hacking instead of going SFH. In terms of duplexes, the numbers on this property were above average for Portland on the MLS. Multi-families are hard to find in Portland/Vancouver, and when they are available, I noticed investors come in and grab them rather quickly with cash (I lost 3 bids to cash buyers prior to this deal).

Having said that, with current market conditions the way they are, I am a bit worried about how this might affect my property price/rental income. Currently waiting on appraisal to come back with a close date of 5/4. Wish me luck!

Thanks again!

View report

*This link comes directly from our calculators, based on information input by the member who 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!