By Living Room Realty, November 21, 2019
My client was interested in purchasing a multi-family property as part of a 1031 exchange as an investment. We looked at duplexes, triplexes, and at my suggestion also included single family properties with ADU’s. We looked at a lot of different properties around Portland to try and find properties that would perform well in their return, as well as have updated systems and solid bones to keep operating costs low.
Eventually a unique opportunity came up of a single family home with a detached ADU for sale that was situated on an alley with great access. We had a property manager assess the potential rents of the ADU and the house, and it all penciled out as being a sound investment. The ADU was only two years old, and with new systems and custom elements, looked to be in great condition. The main house had the feel of an owner occupied home that was well taken care of, with a newer roof, renovated kitchen, and vaulted ceilings on the second floor.
We were able to negotiate a win-win price. Moving into inspections brought up many of the house conditions that we expected, though the sewer scope revealed significant issues. We were able to get that repair negotiated as a condition of closing, and they moved forward. It was a very complicated deal, with multiple contingencies on the sale of properties for both the buyers and sellers, as well as the 1031 exchange. It took a lot of work to get the deal done, but in the end we were able to close and my buyers are very excited for their new investment.
Please feel free to be in touch with me if you have any questions that I can answer, or if you’d like to talk about buying or selling.
