Do you prefer vacant or occupied multifamily in Portland now?

Question

We're selling several residential multifamily properties in Portland from our portfolio and for clients. We've strategically decided to sell when a unit has come up vacant so that potential buyers can walk through. I've had a couple interested buyers say that the value of the building is less since one of the units is vacant.

Usually you can brush one off, several buyers suggest a trend. Am I missing something here?? Mind you these are 4 units and less.

Having vacant units in Portland is worth their weight in gold. You choose your tenants, not the ones your seller chose.

Brad Hammond · Answer

I think that selling a vacant property is only beneficial if the buyer is intending to occupy one of the units. Otherwise, the owner is going to need to fill the vacancy in order for it to qualify for a mortgage.

I had a similar experience when I was under contract to sell my 5-plex and going through an eviction.

Austin Youmans · Answer

Yes, this makes financing more difficult and creates work for the buyer right when they close.

I am buying a property now and I have so much real estate debt that my lender wanted the units leased out before we close. Doable but not ideal.

Only leave it empty if you are hoping to sell to a owner occupied buyer.

Steve Morris · Answer

Am I missing something here??

Lenders - They expect 90% occupancy at a min during the entire transaction.

Not getting why losing months of rent is better than posting a 24-hour notice, so am I missing something?

Do you prefer vacant or occupied multifamily in Portland now?

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