Multi-Family and House Hacking - Portland, OR

6 Replies

Hi BP,

I'm in the Portland area - interested in Multi-Family RE and house hacking - looking to learn more and network with like minded individuals.  We have a few single family rentals currently but considering house hacking a 4 plex in the near future if we can find a deal that works. Not put off by projects that need work and living on site would allow us to improve a unit at a time if necessary.  Look forward to connecting...

Hey @Evan Mitch

I tried this before but the post was removed so I'm trying again :)

House hacking is an incredible way to get into buy and hold real estate investing with a relatively low financial barrier to entry… plus the added benefit of reducing housing costs! There are lots of great RE communities around town, a great place to find them is in the events and/or networks tab here.

If you have any questions about the PDX market there are lots of people on here ready to help! 

@Evan Mitch   That is a very good way to get started and so smart.  To have someone else pay your mortgage plus the extra income from the rentals and also getting the multifamily experience.  You can't beat that.  Good luck to you and congrats!

Hey @Evan Mitch , there are a few things to consider when house hacking a 4-plex.  I've house hacked and owned a 4-plex so I would be happy to go over some of those with you if you want.  

@Evan Mitch Lots of folks here can help with information (including @Brad Hammond and @Chace Fraser who are both local experts and amazing resources). 

I'm happy to be a sounding-board for any loan-related questions you have. Here are two things that come immediately to mind...

If you want to put <20% down, you'll likely be financing with an FHA loan. FHA financing requires 3 & 4 unit properties pass a "self-sufficiency" test, whereby 75% of the appraiser's determination of market rents must equal or exceed your new total payment (loan, taxes, MI, insurance). That's a very tall bar for most properties in our market.

Also, given that you already own other rentals, your purchase will go under added scrutiny in underwriting connected to your occupancy. You will likely need to sell the underwriter on your planned occupancy with a letter explaining why you're moving from your current residence to the plex you are buying. Your occupancy will need to make sense to an underwriter. If you're moving from a bigger, nicer home into a dumpy, fixer plex, you can expect some push-back.

Good luck!

Julee

@Julee Felsman  Thanks for the great info and we'll keep it in mind as we move forward.  We're looking in various locations and not opposed to putting more than 20% down if we come across the right place. Thanks again..Evan