All Forum Posts by: Kirk Johansen

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Killeen.

Purchase price: $280,000
Cash invested: $70,000

4 plex comprising of 2x 3br/2ba and 2x 2/1ba.

What made you interested in investing in this type of deal?

Trying to diversify my investment portfolio.

How did you find this deal and how did you negotiate it?

Found on the MLS. Offered $285,000 but when the appraisal came back at $280,000 we were able to negotiate down.

How did you finance this deal?

Standard financing with 25% down.

How did you add value to the deal?

The 2 3br/2ba were renting at the same price as the 2br/1ba. As tenants moved out increased to appropriate rates for the area. One of the tenants renewed so their rent was increased slightly to get closer to appropriate rent.

Lessons learned? Challenges?

Don't always trust that a seller actually completed the things requested. Asked for the HVAC units to be serviced before closing. 6 weeks after closing one of the units died. Pictures taken show that there was a pretty significant layer of dust all over the inside of the unit. Not indicative of something that was just serviced. Company that "serviced" the unit wouldn't warranty the work so I had to pay to replace the HVAC.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Claudia Trainum w/ All City Real Estate

@Jeff S. City limits of Portland are pretty big. I have a SFH off of 157th and Halsey that is Portland and in that particular neighborhood I wouldn't utilize the low barrier screening criteria. However if it was something like the Montavilla neighborhood, 82nd and Glisan I might. However for the most part I utilize a Property Management company and they take the worry out for me.

I guess it depends on the side of town where your rentals are at. Are you currently doing Section 8 housing?

@Kate Williams Unfortunately your in the same boat many PDX landlords are facing. Sadly Portland and Multnomah County are getting a little too lenient with tenant rights which makes it tough as a landlord. As @Chris Shepard has mentioned I would first talk to your lender to see if you can get forbearance on your loans. If you are utilizing a property management agency, ask them what their policy is and how they are handling the situation. If the tenants have been good tenants this whole time it may be worthwhile to just grin and bear it, if they haven't been the greatest look into evicting them as soon as the Moratorium has ended.

Hey everyone I've been browsing the forums and listening to the podcasts now for just over a month now and finally at that "point" where I feel I need to get my feet wet with my own investments. I inherited a SFH that is owned free and clear and have turned that into a rental however I'm wanting to start building my stack.

My question to the community here is what is everyone's feelings on getting a HELOC against that house to use as cash towards a down payment on more properties? I guess that is the whole thing about this all that has me worried is the financial side, why pull money against something that doesn't have a mortgage right now to then put a mortgage on it?