October 2021 Newsletter

1585 23rd ct se, albany

Duplex | $245,000 | Oct 11, 2021

Affordable 1 bedroom duplex in Albany with some updates

Unit Mix: 1 bed 1 bath each
Total Sq Ft: 1200 total (600 sq ft per unit)
Lot Size: 6098 sq
Year Built: 1978
Recent Updates: Exterior paint, some interior updates such as flooring, appliances, heaters, electrical, etc.
Property Taxes: $3224 (2021)

What I like about this property

  • Affordably priced duplex that appears to be in decent condition

  • Residential neighborhood, in a cul-de-sac

  • Single car garages (potential to convert into additional living space)

Concerns about this property

  • High property taxes relative to the price

  • Somewhat of a strange layout with the position of the garage

  • Small units (only 1 bedrooms)

About the City of Albany

  • Current population: 56,472 (2020 Wikipedia)

  • Very convenient place to live with good schools, parks, shopping (Costco, Walmart, Target, Home Depot, shopping mall, etc) and close to Interstate I-5 for an easy commute to surrounding cities

  • Major employers include: ATI Metals, Samaritan Health Services, Greater Albany Public Schools, Linn Benton Community College, Target Distribution Center

Financial Analysis

Conservative Assumptions Made:

  • Total monthly rent $1900. Each unit rents at $950 (should be possible to get more rent with some more updates)

  • Landlord Paid Utilities $150 a month for water and sewer ($75 per unit).

  • Conventional loan with 25% down payment @ 3.5% interest rate

  • Property Management 8%; Vacancy, CapEx, Maintenance: 5% each

  • Numbers include a $10k upfront rehab cost for some minor updates

1585 23rd Ct SE, Albany, OR 97322

Suggested Information to Verify (Buyer to do due diligence)

  • Always do your own research and analysis on properties!

  • Gather information about current rents and lease terms. Current tenants are likely paying below market rent.

  • Research on the Oregon Landlord Tenant laws including Covid specific restrictions or consult a real estate attorney

  • Verify who pays what utilities. It is likely that the owner pays for water/sewer bill because most multifamily homes bigger than a duplex do not have separate water meters. Owner may also be responsible for landscaping and trash pickup.

  • If the buyer is purchasing this as an owner occupied property, find out if the owner is willing to give notice to one of the tenants to vacate. This is usually a 90 day notice under current Oregon Law. Note that if you are using an owner occupied loan, the unit does not need to be vacant at the time of closing, you just need to move into the unit within 60 days of closing under FHA requirements.

Sources