I'm trying to get a sense of the market right now since there are a lot of factors going on with COVID, low interest rates, underwriting changes, and local landlord-tenant law. Who is still active in the residential multifamily space in Portland, Oregon? Before I saw a growing interest for house-hacking these types of properties, but with COVID has that changed?
There are still deals out there, especially with small-flex properties and the area's recent appreciation. Investors looking to access capital tied up in their buildings do still exist. Also working with a handful of buyers who are looking to owner occupy small-plex or SFH with ADU's.
My plex would be a great owner occupant with 3% rate makes the cap rate higher than the interest for the first time in a long time. Cheap living even with a high price.
We've got buyers still looking for plexes...a couple took opportunities to pull equity out as Covid was hitting and are looking for LLs who are just over everything-Covid, city/state rules, taxes, etc.
A bunch of those who wanted to house hack have fallen by the way-side for the moment. I'm thinking they likely had the most at-risk professions or tenuous financial situations/the most to lose so now they're taking a step back and pausing. I'm hoping that pause doesn't cause them to lose an interest rate that they'll envy for the next 30 years.
Really curious to see if there's a big backlog of evictions when the moratorium ends in September (for now) and if that drives more mom and pop LLs to put their properties on the market.
I am seeing some active buyers out there. Just like on the retail side, there are more buyers than good properties.
I've been working with buyers in Clackamas County and the quality properties that are priced right are moving very quickly. Just helped a buyer with a duplex, 2.5% for 30yrs and it was competitive to get under contract.