I have a SFR in Portland, Oregon that is cash flow positive but not by a lot. I am evaluating a few options to improve this situation, one is "status quo" i.e wait another year and then decide since the next rent increase will improve the situation a little, two is to add a detached ADU which I have researched to confirm both feasibility and strong economics, and three is to see about selling the property as a development lot for multifamily, then using the proceeds on another investment. For option three I'm looking to find a mentor, real estate agent and/or appraiser that can help me understand the underlying value and marketability of my lot for multifamily as a comparison to adding an ADU. The location is very good with many small apartment and condo buildings being completed over the past several years, suggesting that this could be a better approach than the ADU option. My understanding is that the site zoning allows for 3 or 4 units as of my research a few years ago, this might even be more now based on some recent zoning law changes here. If you have any insights on this process, please share! Thanks in advance for your help. Regards, Steve
Hey Steve, I’d love to help.
My brother and I are brokers and as well property managers and real estate investors.
We just purchased a 13 unit complex in Hillsboro and a 9 unit complex in Tualatin.
We have a 4 Plex right next to the Beaverton library where we could develop 11 units, but we haven’t moved on it because we believe the cost of building is so high... and as well we are trying to buy the lot next door so we could build 20 units total.
We are currently splitting a lot in SW Portland and it’s been a bit of a nightmare, but when it’s all said and done I hope it will be worth it. We had the zoning to go for extra units, but I wish that I hadn’t done it. Our best deals have been the ones where we get the property for a fantastic purchase price and our value add is pretty simple and straight forward.
Last year we did a value add on an 8 plex and it was pretty straight forward. After we remodeled 5 units, painted the exterior, did some landscaping, and put up new gutters, our refinance got a majority of our cash out. As well it’s our best cash flowing property so far.
I’m not sure if that helps, but if you’d like to meet up we are in SW PORTLAND and I’ll be speaking at the West Side Investors Network on Wednesday (Jan 22nd) at the Lucky Lab at 6pm.
Isn't Portland allowing THOW to be used as ADU's now? If so, that could be a fast and easy solution for adding value.
Hi Brint, what is THOW?
Tiny House On Wheels
Portland specific :)