Attempting a BRRR in Portland, OR

[Account Closed]

Greetings all, I have two long term rentals that were turnkey set up and want to try my hand at a BRRR because saving up for my next down payment for turnkey would take quite a few years (I am on fixed income and can't increase that part of my formula). My local area is Portland, OR (or surrounding cities) and there are some properties that could use renovations and want to know what anyone's experience landlording in Oregon is. I'm not comfortable with a long distance BRRR or anything like that. Any feedback based on experience would be greatly appreciated, thanks!

[Mike Grudzien]

Quote from @Chris Watkins:

Hi Ray, welcome to the forums. I'm a lender and a BRRR investor with several rentals in Eugene. I work with investors around the state, including several in the PDX metro. Cosmetic rehab properties are hard to come by as they are in high demand.

The financing piece is very important with a BRRR, so it depends on what your goals are. Saving up for a 25% down payment does take a while, but a BRRR requires a bit more investment in repairs. Sometimes that can be financed with a rehab loan or a hard money loan, sometimes not, but you need to have a good amount of reserves to take on a rehab project. Do you have lots of rehab experience? I wouldn't recommend taking on a hard money loan unless you do. Conventional rehab loans are more forgiving, but you have to qualify for a conventional loan to do so, which can be harder on fixed income.

There are several wholesalers who regularly market properties in the area, but those are cash or hard money only. 

Happy to chat more, shoot me a DM if you'd like to talk specifics. 

Listen to Chris' words of wisdom.  He's spot on.  Be cautious in this endeavor: don't want to find yourself upside down and out of funds....