All Forum Posts by: Steven Tran

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $500,000
Cash invested: $25,000

Purchased a furnished 4 bedroom 2.5 bath single family home primary home that we converted into a short term rental. Close proximity to Portland, Oregon, without any of the short term rental restrictions (must live in it 270 days of the year and obtain a STR permit).

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

I bought this as a primary, as it's a nice house in a quiet city. After living in it for a little bit, it was too far from my friends and family than I'd liked. It turned into a great STR, as it is near Portland, OR and has no STR restrictions, so I could host big groups that want to be in Portland.

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

Found this deal on our local MLS, we got it at list price fully furnished against a few competing offers. Seller did not do any repairs.

How did you finance this deal?

Purchased with a 5% down conventional loan.

How did you add value to the deal?

We painted the siding to a modern black and white look. Furnished it with modern furniture. Did many of the repairs on our inspection report.

What was the outcome?

It quickly turned into a $2K monthly cash flowing property. I hired a team of cleaners to come in, and just manage the messaging from the various platforms (Airbnb & VRBO).

Lessons learned? Challenges?

Learning the customer service portion was difficult. I had to keep a much higher standard for the property than my multifamily long term rentals. Managing inventory of cleaning products and amenities provided to our guests was new to me.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a licensed agent in Oregon, focused on helping clients get into long term or short term rentals.

Hi Ian,
I'm a multifamily and STR investor in Vancouver and in the Portland Metro area, would love to connect!

I think ADU's are great and affordable way to do househacking; it gives whoever you are renting to their own space, so less like a roommate and more like a tenant. Hopefully you can find one with a separate entrance as well. I also know plenty of people who use their ADUs for short term rentals (AirBnB, etc.).

You could always buy a single family home and maybe find space that can be partitioned out as its own living space, maybe add a kitchen and bathroom, that would be good for renting out. You definitely have lots of options.

Hi @Rob Tyse!

With a budget of $450k-$650K, you would probably be priced out of getting a B Class 4plex for sure. Even C Class 4plexes are running in the $750K+ range, and this includes the very outskirts of the Portland Metropolitan area. Also I'd like the mention that supply is VERY VERY low and competitive for any sort of multifamily.

If you're okay with that budget for a duplex, you may find something at a B class range in the $550-600K level. You can do the math on that in terms of financing, but if you're going to house hack, you might very well breakeven if not (very) slightly cash flow.

I'd say you have a better chance of getting appreciation than cash flow.

FYI: I did an FHA 4plex househack (kept 1 unit for my parents) 2 years ago in Vancouver, WA (across the river from Portland) and just raised the rents enough to just break even recently. Appreciation for my property has been roughly $100k though, and I'm going to be utilizing that appreciation to refinance out of my PMI soon.

Yes sorry @Lara Nicole I should have answered your question directly. I still think Portland has a lot of room to grow in terms of demand, I think that there will be pockets of Portland that become worse as more affluent people move in, drive up prices, and push people outside of city limits.

As an investor myself, I've purchased in Vancouver, WA and Hillsboro, OR as longtime residents are pushed out to the edges of the metropolitan areas. I don't see Portland itself getting cheaper, I think there will always be a demand for being within city limits.

I've actually lived in San Francisco and Seattle for many years and it is much much worse; the homeless and drug problems are very bad, and there are drugs/needles throughout the streets, and they are much more aggressive. I do think that the problem will become worse here as in other major cities on the west coast, and I don't really know what the best solution for that is; in my experience people just get used to it in those cities (that's why you have areas people know to avoid in those cities, like the Tenderloin in SF and Skid Row in LA).

Sorry I don't have better news for you; I've seen Portland evolve a lot (Portland native, born and raised), I see a decline in quality of life in Portland, but not the real estate market.

I believe Portland still has a lot of potential to grow. If anything, the homelessness problem is a lot worse in cities such as Seattle and San Francisco. People are still moving in droves to Portland from elsewhere.

@Victoria Knutson Would love to connect and see your investment philosophy. I'm also potentially interested about looking in other markets eventually; currently I have 4plexes in Vancouver and Hillsboro. Definitely understand that the market here is a little crazy. Reach out to me on my personal email on my profile :)

Hi Victoria!

I'm also in the Portland, OR area! Would love to connect and talk about what you're looking for. Any reason you might be looking in other markets rather than locally?

Best,
Steven

Thanks everyone! Hoping to be more active in the forums, I'll post about my newer investment property soon!

Investment Info:

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

Purchase price: $675,000
Cash invested: $33,750

I purchased a 4plex under FHA, with one unit reserved for my parents. I inherited 3 tenants, and over the past few years, have turned over all three apartments, getting them up to market rates for rent. I've been able to house my parents for free, all while turning a small profit every month.

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

I wasn't actually interested in investing; I just wanted to house my parents. I was set on purchasing my parents a home and just covering their mortgage until one day my sister recommended that I purchase a multifamily unit, so I could offset their living expenses. I was keen on the idea of not paying for their mortgage out of pocket, so that is the direction I looked towards.

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

I contacted a family friend who was a realtor to help us look for multi-family properties. After a few swings and misses on an offer, my agent spoke with the listing agent, who happened to represent a large property management group. They had exactly what we were looking for; a 4plex with an open unit for my parents.

How did you finance this deal?

I took out an FHA at 5% down to purchase this multiplex.

How did you add value to the deal?

This 4plex was built in 1971, and the property management group before had poorly managed it. Rents were well below market, so I was paying initially nearly $1,000 a month to cover the mortgage with the rents. Over time, with leases ending and some unfortunate situations with tenants leaving, I've been able to make substantial repairs myself and get my rents up nearly $700 combined on all three units in less than 2 years of owning the 4plex.

What was the outcome?

I'm still holding the 4plex, but my parents at the moment live completely for free. I'm also taking in a small profit each month, which I put additionally towards the principal.

Lessons learned? Challenges?

With each renovation, I've learned a lot about renovations and general fixes; what would have seemed like insurmountable challenges before are now all skills I can say I have under my belt (flooring, plumbing, electrical, you name it). I've also learned a lot about the art of managing my tenants, working through issues with non-payment, abandonment, eviction, and more recently, COVID.

This also got me interested in investment properties, and I purchased my second 4plex in October 2020.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with Phan Hall Property Group, and they have agents licensed in Washington and Oregon. I had such a good experience working with them, that I recently joined their team as a real estate agent as well (licensed in Oregon)! They helped me navigate the investment aspect of my purchase, and as investors themselves, were able to find me the right contractors for all of my major issues.

I would strongly recommend my lender as well, Robert Day from Root Mortgage. Extremely knowledgeable.