Quote from @Christine Mulkins:
Hi Daniel! Just a few thoughts come to mind... if your monthly total expenses are about $3900 with 20% down and you rent out just the 1 side for $2100, you'll be negative ~$1800 per month. Moving into 1 side can slow down the process of getting the 2nd unit rent ready so I'm thinking you should consider renting both sides out from the start. Like you mentioned, start with the one that needs less work first, get that unit filled, and then work on the next place. If the duplex is in a very desirable area in high demand and close to lots of amenities, you shouldn't need to spend too much money getting the places "rent ready." Especially if they're giving off the 70's charm, if the places are in pretty good shape but are just outdated, then a fresh coat of paint, potentially new floors (LVP, carpet, or both), and a good cleaning might be all they need? I agree with you that each unit having a garage and backyard is a huge bonus. You'll likely be competing with neighboring large multifamily properties so having a space that feels like a home to a prospective tenant is a big bonus.
While Rentometer is a good first step, my husband and I always search Craigslist to see what rents are for local competition. This should give you a better gauge of how to price your units. Who knows, maybe you could even get a little more for your units?
Last thought...since this would be your first rental property deal and you're buying in Oregon, please be sure you're familiar with Oregon landlord/tenant laws and in particular, the laws in Portland. The City of Portland has its own set of stricter, tenant friendly rules. These set of rules can make it extremely costly to a landlord should you ever need to evict a tenant. Just keep this in mind. This is not meant to scare you or discourage you at all. My husband and I still buy down where we live in Southern Oregon and everything has been fine. Just being aware of the laws from the start is important to your success. :)
If you need help with forms, I can send you some great local online resources where we get our leases, check-in reports, addendums, etc.
Wishing you all the best!
Hi @Christine Mulkins!
Really appreciate your time and feedback - sorry for the delayed response !
We have shifted mindset to possibly putting down 10% to keep some of that capital for repairs/future purchases. I know that when living in the house we are going to be owing money - I am not sure if house hacking these days provides anyone with $0 living. I am doing calculations with the assumption of renting out both units after 1 year and understanding we will be paying some mortgage in the first year. Let me know your thoughts and if I am not thinking correctly or can think in a different way.
The overall Duplex is good but a little funky. The third bedroom is very small and would only fit an office or possibly a nursery. there is only 1 full bath between the 3 rooms and a half bath downstairs. It has a few other strange things such as the interior garage door opens up through the half bath downstairs and also the toilet positioning in the bathroom is kinda odd and facing the sink/counter rather then away. Not a huge deal but just small things. We would need to replace flooring throughout each unit and paint. It also is built before 1978 and they provided disclosure they don't know of any lead paint. I am not sure if I am over thinking this but don't like the idea that we either continue operating as "don't know" and have to disclose to every future tenant/buyers or we get a test done and potentially have very expensive work be down to remedy.
Great tip on Craigslist. I did look around as well as rents advertised on the main websites and it seems that 3 bedrooms with 1 1/2 bath go for around $2,000 to $2,300. I am thinking because the third bedroom is so small, it may be on the lower end of that scale.
This property is actually on Washington state side, however I completely get and agree with what you are saying. I would be open to receiving any forms etc that may help me.
