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I would like to buy an Multi Unit Property in Portland Ore?

Hi,

I'm 25 years old my husband is 27 years older than I am. We'd like to buy a Multi unit to create cash flow and provide our family with housing. We plan to be live in land lords. This will be our first home, and first time as real estate small business owners.

Our target area is Portland Ore. I can use any advice you have.

Where to find the best loans, How to apply for business grants, what to look for in the property and what to avoid...ect. I'm willing to pick up books or takes classes if the meet our bottom line.

Thank you,
Kynore_Starr
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August 21 2009 - Portland
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Answers (9)

I think your heading on the right track.

As a Real Estate Investor myself you are heading in the right direction in terms of living and renting out the other side.  A duplex can help you achieve that in terms of cash flow. 

As a landlord, I can attest that It can be challenging.  Make sure you have the tenasity to deal with difficult situations with tenants.  Also, I would reccomend that you become a Member of the Portland Housing Rental Association.  They give you advice and help with tenants, forms, and you can take classes and meet other investors and landlords at their monthly meetings.  The annual fee is small and it is tax deductable! 

They have saved me over and over!!

If you know of anyone who is a successful RE Investor/Landlord try to find a mentor...  It helps!


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February 09 2010
You can buy up to a fourplex with an FHA loan with only 3.5% down.  I am in the process of doing this with another client right now.  There are a few potential pitfalls, but in general, buying what is essentially an investment property and living there is an excellent way to accomplish two goals at the same time.  You get a place to live that costs you very little each month once you deduct the rent on the other units.  You also get the long term advantage of owning an investment property when you move out of this property and buy something else.

I'd be happy to show you what I am doing with my other clients so you can see how it could work for you.  I own my own investment property and manage three others.  The realtor I work with on investment properties owns three of her own properties and manages her own properties.  We make a very good team for people looking to get into investment real estate.  Let me know if we can be of assistance in any way.
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October 07 2009
You can get an FHA loan on a duplex, and the income from the other unit will help you qualify.  So, it will be better not to buy a foreclosure, since that won't be rented and most likely not qualify for FHA.  Look for a nice duplex with a history of good renters.  But you do not want long term leases.  Because FHA will require you to move in to one of the units in 60 days.  

 It's okay to think like a home owner when buying a plex for yourself, but to have a succesful transaction, you need to act like an investor.
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September 25 2009
Here's how to get a rough idea of what you can buy: Go to www.zilpy.com, enter Portland, and find a monthly rental rate. Multiply that by the number of units you want.  For example, if the rate is $750 per month and you want four units, multiply four x $750 for your gross monthly rental figure of $3,000. Multiply that by 95%, assuming a vacancy factor of 5% (you will always have vacancies, even if it's just the time between tenants moving in). Then, take that number and multiply by 80%. Expenses run all  over the place, but 20% is a good figure to use for planning purposes (multiplying by 80% is the same as taking away 20%).

To stay with the above example of gross rents at $3,000 per month, you'r enow down to $2,280 for a pre-debt service cash flow number. Do the math, and you'll find out that a monthly payment of $2,280 will make the payments on a $380,000 loan at 6% interest. Your down payment added to the $380,000 will determine what you can pay for property.

These are just rough numbers, rounded off,and actual figures will vary depending on the property location, condition and rentability, but if you use this formula for planning purposes, you will zero in on what you can do.
 
I wish you the best of luck in your endeavors, and let me know if I can help.
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August 22 2009
This link shows a list of the real estate investment groups in Oregon.  Many of the groups are dedicated to education, knowledge exchange, and mentoring.  Since this is new to you, I suggest you investigate and join an RE investment group. 
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August 22 2009
Now is a great time to buy.  I really recommend foreclosures, your best chance at cash flowing.  I have long lists of foreclosed multi unit properties.

Best of Luck!
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August 21 2009
This is a strategy I've recommended to people before.If you move into a small plex (4 units or less), you get the advantages of an owner occupied mortgage rather than an investor mortgage. Those advantages are significant now.The down side is living in a rental unit. But there are properties designed to for just your situation. I almost moved into a property that was basically a single family house with a triplex in the backyard.Plexes are moving slowly now so you may well find something that meets your needs.
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August 21 2009
'morning Kimberly,
I just purchased a duplex for myself (with a partner) and we are in the process of remodeling to prepare to rent!  I presently own 2 other investment properties and have owned several others in the past.  I'm not sure that owning investment real estate would qualify for business grants, but you would certainly want to get a trusted mortgage broker to help you run the numbers and find the best loan for your situation.  Kimberly is quite right regarding buying 1 to 4 units vs larger plexes and as a first-time buyer, starting a bit smaller might be better.  As always, location is very important.  You will consider not only a good rental area but, since this will be home, you will want to incorporate your housing needs!  You should partner with a knowlegeable Realtor, a good accountant/CPA and an experienced mortgage broker to brainstorm all the exciting elements of owning investment property.  It's a great write-off and an excellent addition to any financial portfolio.  I would also be happy to assist you in your search and recommend other professionals to help!!
Janeese Jackson, Principal Broker
503-709-0802
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August 21 2009
Hi Kynore,

Renting is a big topic although below is a bit of information and direction that may help.

In Oregon, 1-4 units are considered residential and anything above is commercial which will help in determining which loan would be best for you and your husband.

A lender I work with often is David Campf, Sr. Loan Consultant
Acceptance Capital Mortgage, Corp., 503-619-4331 office, 503-789-6083 cell, 503-626-7333 fax, email dcampf@acceptancecapital.com
and he would be able to help answer lender questions and through the pre-approval process.

In regards to what to look for; location, number of units, newer, older, amount of capital you have to work with in regards to reserves and maintenance will be factors to consider.

There are investment clubs you can join or the Rental Housing Association of Greater Portland is a non-profit designed to help landlords and provide classes.  http://www.rhagp.org/

If you would like help in your search, please feel free to contact me.  Buyer Agents are free to the buyer, we are paid by the seller.  If you feel like we would make a good team, I would look forward to working together with you and your husband.

Thank you Kynore,
Kimberly

Licensed in Oregon
971-227-13022

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August 21 2009
 
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