Skip to content
Portland Real Estate Forum

User Stats

2
Posts
0
Votes
Nitish Paliwal
0
Votes |
2
Posts

Finding Positive Cashflow Units in Portalnd Area

Nitish Paliwal
Posted Aug 23 2020, 21:57

Greetings Members,

TL;DR: I am trying to locate SFR units that may positively cash flow in and around PDX with maximum offering price of $325000. Is it even realistic given the fact that prices have soared within the last decade?

Details:

I have a question regarding opportunities in Portland Metropolitan, but specifically in and around Beaverton/Hillsboro/Tigard/Aloha area. I understand that finding an opportunity that positively cash flows is important, however, there are hardly any opportunities available within my budget. Given my (novice) experience level, I am looking for relatively newer units to avoid running into any maintenance costs that older units may offer. Here are typical numbers that I see, for a 3 Bed 2 Bath SFR that has been built after year 2000.

  1. List Price: $320,000
  1. Loan Amount assuming 25% down payment: $243,750
  1. Expenses as following:
    1. Vacancy Rate: 8%, $144/month
    2. Custom Expenses: $50/month
    3. HOA Fees: $50/month
    4. Cap Ex: $90/month
    5. General Maintenance: $90/month
    6. Mortgage: $1095/month
    7. Taxes: $240/month
    8. Insurance: $50/month

Total: $1809/month

  1. Ren Estimate: $1800/month

Conclusion:

  • Monthly Cash Flow: -$9/month
  • CoC ROI: -0.14%

Perhaps I am being wishful here to find an opportunity under $325K that offers positive cash flow, but it will be great to hear back from investors who are experienced in this areas.

TIA for any inputs you may have.

Loading replies...