Trying to find our first deal.

6 Replies

I am trying to find my first deal. But I am really having a hard time. I live in Portland Oregon and I cant make any of the numbers work out. 

I recently found a quadplex in a small college town in Washington for $500,000. But my problem is that I only have $20,000 for a down payment so the cash flow would be zero (with a house hack). 

I feel stuck. I could use some advice or thoughts, even if the advice is to move onto a new deal. 

Thanks.

@Maxwell Murphy you said it has zero cash flow as a house hack, but what does it look like when you have that unit rented out once you leave? House hacking doesn't necessarily mean bank rolling the entire time your there. It's a way to reduce your own expenses, build equity, and break into an investment vehicle to propel you further once you leave.

Thanks for replying Heath. 

I think that the numbers look like this:

with three of the places rented out I would still need to pay about $600 a month.

With all four places rented out the cash flow would be roughly $300 monthly. 

What is interesting to me about this property is that it is located very close to a college, and that makes me wonder if the value could increase significantly. 

Originally posted by @Maxwell Murphy :

I am trying to find my first deal. But I am really having a hard time. I live in Portland Oregon and I cant make any of the numbers work out. 

I recently found a quadplex in a small college town in Washington for $500,000. But my problem is that I only have $20,000 for a down payment so the cash flow would be zero (with a house hack). 

I feel stuck. I could use some advice or thoughts, even if the advice is to move onto a new deal. 

Thanks.

Hello Maxwell!  Don't be discouraged!  I don't know a lot of people who are finding that the numbers work in Portland right now for buy and hold investments.  Are you just looking at RMLS deals?  I would suggest you connect with some wholesalers and/or start doing some driving for dollars.  There are a lot of people on BP that are wiser than I am when it comes to Portland proper (I do all my business in the suburbs) but I would anticipate because the market is so hot that most sellers in Portland are probably going to be pretty savvy to what's happening in the market.  However, I'm betting that if you started targeting off-market properties in this area you've found outside of Portland, you might be able to find a deal?  I would encourage you to dig in to some of the great advice here on BP for finding your own deals.  Feeling stuck sucks - I've been there for more time than I care to think about.  Push thru, do things that make you uncomfortable, be creative, keep going.  All the great stories on the podcasts are people no different than you and I.  Its just about moving thru that and persisting.  

@Maxwell Murphy If you can heavily subsidized or live rent free, it’s a good chance it’s a good deal! My biggesf regret is that my wife and I bought a condo before we got into investing. Having subsidized or free rent would be amazing.

Hey Maxwell, I'll echo what others have said...keep looking, keep scrapping for deals, and understand that it's real difficult to get your cake and eat it too. Taking advantage of low-down, owner-occupied loans is going to reduce your chances of cashflowing, but increases your odds of actually starting your investment career. 

$300/month on a four-plex (assuming you're out after a year and that number takes into account vacancies, capex, repairs, etc.) isn't what a lot of people look for but when you think about the reduced cost of living cheap and saving for a second property and getting a jump start, then I'd say $300/month is pretty nice. 

Hope that helps, feel free to reach out if you want more specific advice!

Best of luck, 

Mathew